Determinants of Agricultural Share in GDP: Evidence from Pakistan

Abstract

For the economic development of a country, agriculture development is considered a significant factor. The study's main purpose is to estimate the effects of different factors affecting the share of agriculture in Pakistan's GDP. For this purpose, secondary data for the period from 1990 to 2020 was taken from the World Bank and Economic Survey of Pakistan. The Ordinary Least Square (OLS) technique was used for the analysis. Study shows that different factors significantly impact the share of agriculture in GDP. Inflation has a negative relationship, and the exchange rate has a positive relationship with the share of agriculture in GDP. Imports of pesticides and agricultural raw materials have a direct relation, and agriculture credit has an inverse relation. The government should formulate policies to increase the share of agriculture in GDP. Agriculture can play a positive role in the national income, control inflation in the country, and make exports and imports beneficial for Pakistan's economy.