Sources of Agricultural Productivity Growth in SAARC Countries: The Role of Financial Development, Trade Openness and Human Capital
Sources of Agricultural Productivity Growth in SAARC Countries: The Role of Financial Development, Trade Openness and Human Capital
Naveed Ali1, Umar Hayat1*, Shahid Ali1, Muhammad Imad Khan1 and Sanam Wagma Khattak2
ABSTRACT
Apart- from providing food to the massive population, agriculture sector contributes a big share to South Asian GDP and it also provides employment to the fast-growing population. Examining the sources of agriculture productivity has not attained much importance related to SAARC countries. Moreover, the studies on the role of agriculture productivity in case of the South Asian region are limited to individual countries. Due to the important role of agriculture productivity in the world’s economy, it is imperative to analyze the sources of agriculture productivity of the SAARC countries. This endeavor examines the impact of financial development on agricultural productivity in case of SAARC countries for the period of 1996 to 2019. Moreover, this study introduces trade openness, human capital, and income as important control variables of agriculture value-added. To serve this purpose, this study utilizes CS-ARDL approach. The results of long-run estimates show that financial development, income, trade openness and human capital are important factors explaining agricultural productivity. Moreover, the study finds an inverted-U shaped nexus between financial development and agriculture productivity. The results of this study have great policy implications for SAARC countries.
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June 2021
Vol. 37, Iss. 2, Pages 331-713
