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Impact of Credit Disbursement, Area under Cultivation, Fertilizer Consumption and Water Availability on Rice Production in Pakistan (1988-2010)

Listed author(s):
  • Hussain, Anwar Hussain

This study estimates the impact of major agriculture inputs (credit disbursement, area under cultivation, fertilizer consumption and water availability) on total rice production in Pakistan using a time series ranging from 1988 to 2010. The study uses a log-linear Cobb-Douglas production function to estimate the impact and importance of these inputs. It finds that area under cultivation and water availability had a positive and statistically significant impact on rice production and the other two inputs had a positive but statistically insignificant impact. Estimation reveals that a 1% increase in area under rice cultivation brought a 1.64% increase in total rice production and a 1% increased in water availability increased total rice production by 0.87%. The insignificance of credit disbursement and fertilizer consumption indicates the presence of inefficiencies which begs for some policy attention.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41963.

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Date of creation: 2012
Publication status: Published in Sarhad Journal of Agriculture 1.28(2010): pp. 95-101
Handle: RePEc:pra:mprapa:41963
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  1. Arshad Hasan & Zafar Mueen Nasir, 2008. "Macroeconomic Factors and Equity Prices: An Empirical Investigation by Using ARDL Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 501-513.
  2. Muhammad Iqbal & M. Azeem Khan & Munir Ahmad, 2001. "Determinants of Higher Wheat Productivity in Irrigated Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(4), pages 753-766.
  3. Hodges, Dorothy J, 1969. "A Note on Estimation of Cobb-Douglas and CES Production Function Models," Econometrica, Econometric Society, vol. 37(4), pages 721-725, October.
  4. Fuss, Melvyn & McFadden, Daniel & Mundlak, Yair, 1978. "A Survey of Functional Forms in the Economic Analysis of Production," Histoy of Economic Thought Chapters,in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 4 McMaster University Archive for the History of Economic Thought.
  5. Srinivas, T. & Ramanathan, S., 2005. "A Study on Economic Analysis of Elephant Foot Yam Production in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 18(2).
  6. Wu, De-Min, 1975. "Estimation of the Cobb-Douglas Production Function," Econometrica, Econometric Society, vol. 43(4), pages 739-744, July.
  7. Imtiaz Ahmad & Abdul Qayyum, 2008. "Dynamic Modeling of Private Investment in the Agricultural Sector of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 517-530.
  8. Prajneshu, 2008. "Fitting of Cobb-Douglas Production Functions: Revisited," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 21(2), December.
  9. Shujie Yao, 1996. "The determinants of cereal crop productivity of the peasant farm sector in Ethiopia, 1981-87," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(1), pages 69-82.
  10. Dev, Uttam Kumar & Hossain, Mahabub, 1995. "Farmers' Education, Modern Technology And Technical Efficiency Of Rice Growers," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 18(2).
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