Factors Influencing Wheat Production in Pakistan: An Empirical Cobb–Douglas Production Function Analysis
DOI:
https://doi.org/10.53560/PPASB(63-2)1133Keywords:
Agriculture Credit, Cultivated Area, Improved Seed, Production Function, WaterAbstract
Current research study examines the effect of various input factors, including wheat cultivated area, agriculture credit disbursement, improved seed distribution and availability of water on the wheat crop production in Pakistan by considering time series data of Economic Survey of Pakistan from 1990 to 2023. In order to analyse input data in present study, the log linear Cobb-Douglas production function was considered. Economic findings illustrated that availability of water, agriculture credit disbursement and cultivated area for wheat crop has statistically significant positive effect on wheat crop production. Moreover, unit root testing (Augmented Dickey-Fuller) and cointegration analysis are also used for econometric analysis. However, results also showed that although improved seed distribution has a positive association with wheat production, but this relationship is insignificant. Furthermore, econometric analysis of the regression model showed that a one percent rise in cultivated area for wheat crop would increase wheat production by 1.17%. Similarly, 1% increase in amount of water availability would lead to a rise in wheat crop production by 0.30%. Moreover, wheat crop production exhibits a 0.05% increase for every 1% rise in agricultural credit disbursement. It is suggested that there should be formulation of policy frameworks regarding to improve yield of wheat crop, water-use efficiency, credit disbursement, effective research on climate resilience strategies for wheat crop and adoption of modern technology in agronomic prospective. Policies should be formulated in order to tackle the climate change negative impacts (less water availability) on wheat production.
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