The Role of Technological Advancement in Agriculture Sector on Economic Growth of Pakistan

Abstract

This study is designed to explore the role of technological advancement in agricultural sector in the context of economy of Pakistan. The data set are based on the period from 1972 to 2019. The Autoregressive Distributed Lag (ARDL) bound testing employed to identify the short run and long run relationships between the technological advancement in agricultural sector and gross domestic product. The Granger causality also applied to find out the direction of causal relationships. The ARDL cointegration results indicates that there is positive relationship between technological advancement in agricultural sector and gross domestic product in short run and long run. The Granger causality results also indicate that the GDP growth also Granger cause the agriculture technology. And stability tests show that the model CUSUM and CUSUM of squares indicate that models are valid. The results suggest that technological advancement in agricultural sector has positive impact on GDP in case of Pakistan economy. Technological advancement in agricultural sector strengthens the Pakistan’s economy. There is need to pay more attention by the government administration to provide technological facilities in agricultural sector, properly and efficiently to get more benefits which ultimately enhance the agriculture growth and development of Pakistan’s economy.