Impact of Agriculture Sector Development on Economic Growth: Application of Robust Linear Least Squares Regression on Pakistan’s Data Set
Impact of Agriculture Sector Development on Economic Growth: Application of Robust Linear Least Squares Regression on Pakistan’s Data Set

Summary/Abstract: The objective of the study is to examine the relationship between economic growth and agricultural crops, i.e., maize, rice, sugarcane, and wheat production in the context of Pakistan by using the last 14 years time period from 2003-2016. The study used some other exogenous factors, i.e., agriculture exports and agriculture employment, which gives conclusive findings in a given country context. The study employed robust least squares regression apparatus that gives unbiased, efficient, and reliable estimates. The results show that agricultural crops, i.e., maize and wheat production substantially increases country’s economic growth, while agricultural exports does not supported due to some structural flaws in agriculture commodity market. The results confirm the positive association between agriculture employment and economic growth that helpful to reduce Pakistan’s internal migration issues. The study emphasized the need to support rice and sugarcane production through protective prices, economic policies, and financialization in the commodity markets.

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