YIELD RESPONSE IN PAKISTAN AGRICULTURE: A COINTEGRATION APPROACH

We seek to quantify and evaluate the supply (yield) response of wheat and cotton in Pakistan using cointegration analysis and annual data for 1960-96. The results reveal that wheat supply is significantly influenced by the prices of wheat, cotton, and fertilizer, the percentage area under high yielding wheat varieties, and the rabi season (winter) water availability. The cotton supply is found to be significantly influenced by the real cotton price, the real fertilizer price, and in the irrigated area. The wheat supply was found to be inelastic both in the short- and long-run. However, cotton supply was elastic in the long-run.Pakistan, supply response, wheat, cotton, cointegration., Crop Production/Industries,

Environmental Efficiency Analysis of Basmati Rice Production in Punjab, Pakistan: Implications for Sustainable Agricultural Development

The intensive use of chemicals worked as a catalyst to shift the production frontier but the most critical factor of maintaining a clean environment was totally ignored. The present study attempts to estimate the environmental efficiency of rice production by employing the translog stochastic production frontier approach. The data are collected from five major Basmati rice growing districts (Gujranwala, Sheikupura, Sialkot, Hafizabad, and Jhang) of Punjab in 2006. Chemical weedicides and nitrogen are treated as environmentally detrimental inputs. The mean technical efficiency index is sufficiently high (89 percent) but the environmental efficiency index of chemical weedicides alone is 14 percent while the joint environmental efficiency index of chemical weedicides and nitrogen is 24 percent implying that joint environmental efficiency is higher than chemical weedicide alone. It indicates that substantial reduction (86 percent) in chemical weedicide use is possible with higher level of productivity. Moreover, it is likely to contribute a considerable decrease in environmental pollution which is expected to enhance the performance of agriculture labour. The reduction in chemical weedicides will save Rs 297 per acre and Rs 1307.3 million over all from the rice crop in Punjab, improving the profitability of rice growing farmers by the same proportion. Empirical analysis indicates that reduction in environmental pollution together with higher level of profitability in rice production is achievable.Rice Production, Environmental Efficiency, Weedicide, Fertiliser (NPK), Stochastic Translog Frontier

Role of Agricultural Research and Extension in Enhancing Agricultural Productivity in Punjab, Pakistan

In this study long run relationship between agricultural research and TFP (total factor productivity) is estimated by using Cointegration technique for 1970-2005. The results of the long run relationship between TFP and agricultural research indicate that agricultural research has a significant and positive impact on TFP. The estimated coefficient of research is 0.571 and it is significant at 1 percent level of significance. Granger-causality tests show a bidirectional relationship between research and productivity. The estimate of marginal internal rate of return (MIRR) to research is found to be 73 percent, indicating that Punjab agricultural research system remained productive.Productivity, TFP, Cointegration, MIRR, Granger Causality.

Measuring the Impact of Industrialization and Financial Development on Water Resources: A Case Study of Pakistan

The objective of the study examines the impact of industrialization and financial development on water resources, in the specific context of Pakistan. Data set from 1975-2009 are taken for time series analysis. The result reveals that economic growth positively linked with the water resource, as water plays a pivotal role in the economic development of a country. Thus limiting this resource would affect the process of economic growth. Industrial processes have a negative environmental impact which causing water pollution. Financial development has an indirect effect on water consumption, as it shows that private firms finds more funding opportunities in a country, therefore, avoid dirty industry game.Economics growth, financial development, industrialization, water resource, cointegration, bonds test, Pakistan.

Estimation of Export Supply Function for Citrus Fruit in Pakistan

There is strong evidence in the literature that export and economic growth have a positive relationship. In Pakistan, with an agrarian economy, earnings from primary agricultural exports are vital for the overall growth process. Fruits are the traditional export commodities, which contribute more than half of total export earnings from primary agricultural commodities. The persistent instability in world market prices for primary commodities has depressed the export earnings from these commodities over time. This poses great challenges to a country like Pakistan. The present study aims at examining changes in the volume of export of citrus fruit from Pakistan caused by such factors as changes in domestic and export prices, national product, foreign exchange rate, etc. The study uses time series data for the period 1975–2004 for citrus exports and related domestic price, export price, GDP, and foreign exchange rate, employing the co-integration and error correction techniques for analysis purposes.

Environmental Efficiency Analysis of Basmati Rice Production in Punjab, Pakistan: Implications for Sustainable Agricultural Development

The intensive use of chemicals worked as a catalyst to shift the production frontier but the most critical factor of maintaining a clean environment was totally ignored. The present study attempts to estimate the environmental efficiency of rice production by employing the translog stochastic production frontier approach. The data are collected from five major Basmati rice growing districts (Gujranwala, Sheikupura, Sialkot, Hafizabad, and Jhang) of Punjab in 2006. Chemical weedicides and nitrogen are treated as environmentally detrimental inputs. The mean technical efficiency index is sufficiently high (89 percent) but the environmental efficiency index of chemical weedicides alone is 14 percent while the joint environmental efficiency index of chemical weedicides and nitrogen is 24 percent implying that joint environmental efficiency is higher than chemical weedicide alone. It indicates that substantial reduction (86 percent) in chemical weedicide use is possible with higher level of productivity. Moreover, it is likely to contribute a considerable decrease in environmental pollution which is expected to enhance the performance of agriculture labour. The reduction in chemical weedicides will save Rs 297 per acre and Rs 1307.3 million over all from the rice crop in Punjab, improving the profitability of rice growing farmers by the same proportion. Empirical analysis indicates that reduction in environmental pollution together with higher level of profitability in rice production is achievable. JEL classification: N5, O13 Keywords: Rice Production, Environmental Efficiency, Weedicide, Fertiliser (NPK), Stochastic Translog Frontie

Energy Use for Economic Growth: Cointegration and Causality Analysis from the Agriculture Sector of Pakistan

Productivity is closely associated with direct and indirect use of energy as an input. The importance of energy can not be denied as one of the basic inputs to economic growth process. The consumption of energy has been among the critical indicators of the level of development of any country. It is observed that usually the developed countries use more energy per unit of economic output and far more energy per capita than developing countries. This reflects the adoption of increasingly more efficient technologies for energy production and utilisation as well as changes in the composition of economic activities. This, largely, needs a shift in energy use [Cheng and Lai (1997)]. When this shift in the composition of final energy use is taken into account energy use and the level of economic activity are found to be tightly coupled. The prospect of large reduction in the energy use intensity of economic activity seems limited. So, the accelerated demand results in the scarcity of energy and increasing cost have severe implications for economic growth. This ever increasing role of energy in the present day scenario underlines the need to increase the supply of energy and to find some new alternative energy sources and energy conservation technique

Estimation of Export Supply Function for Citrus Fruit in Pakistan

Nature has blessed Pakistan with an ideal climate for growing a wide range of delicious fruits. Thus a very wide range of tropical, sub-tropical and temperate fruits are grown in the country. Over the years, Pakistani experts have developed unique strains of exotic fruit varieties. Pakistan is producing a large variety of fruits on an area of 734.6 thousand hectares with a total production of 5712.4 thousand tons. Out of this 354.4 thousand tons fruit is exported from the country [Pakistan (2004)]. Horticulture is an important sub-sector of agriculture and plays a vital role not only in rejuvenation of rural economy but also in improving human nutrition which is often deficient in ingredients such as vitamins and minerals. Citrus and mango are the main fruit crops which contribute substantially to the national income

Pollen fertility estimation of some sub-tropical flora of Pakistan

A total of 46 species from 3 monocotyledon and 18 dicotyledonous families were investigated for percentage pollen fertility. The average fertility was 91.15% which showed the general stability of the flora in the study area. In the present research the highest 100% value was observed in Argyrolobium roseum (Camb.) Jaub. and Spach and the lowest 66.67% was observed in Spergularia arvensis L. The dominant families regarding number of species were: Brassicaceae having six species, whose average fertility was 91.82% and Papalionaceae having five species whose average fertility was 88.79%. The present studies showed that the flora of the area is a stable one.Key words: Pollen fertility, district tank, sub-tropical flora