Estimating Effects of Agricultural Inputs on Growth of Agricultural Production: A comparative study of India and Pakistan

Abstract

Abstract: The present study compares the relationship between agricultural inputs and agricultural production growth in India and Pakistan during the period 1991-92 to 2013-14. In this study we used five variables fertilizer usage, electricity consumption in agricultural sector, irrigation, Public Investment in agricultural sector and agriculture production.  The econometric results suggest that fertilizer usages, electricity consumption and public investment have significant on agricultural production in India as well as in Pakistan. Only one independent variable irrigation has insignificant but positive impact on agricultural production in both economies.  The distinctive implication for Indian and Pakistan policymakers is that there is need to increase public investment in agriculture sector it may be in area of agriculture research, rural infrastructure, storage and marketing facilities. More public investment should be encouraged in agricultural backward regions of both nations.

Keywords: Agricultural inputs, Agricultural Production, Public investment, fertilizer usages, Electricity consumption

JEL classification: Q1, Q12, Q15, Q120, Q110