Pricing of Agricultural Capital Input in Pakistan: An Analysis of Bound Testing Approach


  • Hina Ali Assistant Professor, The Women University Multan, Pakistan
  • Hira Tahir Department of Economics, The Women University Multan, Pakistan



Pakistan, Land, Price of Capital, Yield


Purpose: This study aims to raise the trouble of adjustment the price of capital input in Pakistan. The data that is take to estimate the analysis is time series which span over from 1974 to 2014. Yield, gross domestic product, exchange rate, land, price of capital, agriculture employment, agriculture imports and exports are variables that use in this study. Econometric technique of auto-regressive distributed lag (ardl) to co-integration approach are applied apply to estimate the long run and short run relationship among variables. Conclusion of this study shows that yield and price of capital are negative and insignificant both in short and long run.


Abid ,a. 2010. An analysis of bt cotton cultivation in punjab, pakistan using the agriculture decision support system (adss). Ag. Bio forum. 13: 274- 287.

Ahmad, k., and Ilyas, m. 2011. Trends in total factor productivity in Pakistan manufacturing sector. Interdisciplinary journal of contemporary research in business, 2(10), 81.

Ahmad, s. 1996. An investigation into the economic viability of small farmers in Punjab (a case study of tehsil melsi of vehari district)". Thesis, deptt. Of agri. Economics, university of agriculture, faisalabad–Pakistan

Akinboyo, o.l. 2008. Five decades of agricultural policies: what role has statistics played? Cbn bullion, 32: 134 – 165.

Alderman, h. M. Ghaffar, c. And marito g. 1988. Household food security in Pakistan: the ration shop system islamabad: Pakistan institute of development economics, and washington, d.c.: international food policy research institute. (working paper no. 4.)

Ali, m. And byerlee, d. 2000. Productivity growth and resource degradation in Pakistan’s Punjab: a decomposition analysis. World bank policy research, work.

Ali, s. 2004. Total factor productivity growth in Pakistan’s agriculture, 1960-96. The Pakistan development review 43(4): 493-513.

Ali, s. 2005. Total factor productivity growth and agricultural research and extension: an analysis of Pakistan’s agriculture, 1960-1996. The Pakistan development review 44(4): 729-746.

Ayaz, h. And carter m.r. 1996. Financial market efficiency in an agrarian economy: micro econometric analysis of the pakistan punjab. The journal of development studies, 32: 771-798

Aziz, b. 2004. Demand for meat and structural changes in Pakistan: an econometric analysis. Journal of social sciences and humanities, vol. 2(2), pp. 55-80.

Boansi ,d. 2013. Competitiveness and determinants of cocoa exports from ghana. International journal of agricultural policy and research, 2013:1(9):236-254.

Chaudhary, a.m. Ahmad, b. And chaudhary, m.a. 1992. Cost of producing major crops in Punjab, Pakistan. Department of farm management, university of agriculture, faisalabad.

Chaudhry, a. A. 2009. Total factor productivity growth in Pakistan: an analysis of the agricultural and manufacturing sectors. The lahore journal of economics, 14, 1.

Ghafoor, a. Hussain, m. Naseer, k., ishaque, m., and baloch, m. H. 2010. Factors affecting income and saving of small farming households in sargodha district of the Punjab, Pakistan. Pakistan journal of agriculture: agricultural engineering veterinary sciences (Pakistan).

Government of Pakistan. 2004. Agricultural statistics, ministry of food, agriculture and livestock, government of Pakistan.

Government of Punjab. 2004. Punjab agricultural report, lahore. .

Hassan, s. And ahmad. B. 2005. T?chnical?ffici?ncy?fwh?atfarm?rs in mix?d farming syst?m?fth? Punjab, Pakistan. Int?rnati?nalj?urnal?fagricultur? and bi?l?gy, 3: 431–435.

Hassan, s. Tabasam, n. And iqbal, j. 2005. An economic analysis of wheat farming in the mixed farming zone of Punjab province. Pakistan. Journal of agriculture and social sciences, 2, 167-171.

Hussain ,a. A. Bashir, m.z. And mehmood,i. 2011. Agricultural productivity and rural technical efficiency of wheat production in punjab poverty in the rice-wheat and mixed-cropping zones of the punjab. Pakistan journal of life and social sciences, 9: 172-178.

Hussain, s.s. 1990. Wheat yield potential in irrigated mardan. Pakistan journal of agriculture and social sciences, 19: 233-238

K.a. 1999. The relationship between farm size and productivity in bangladesh agriculture: the role of transaction cost in rural labor market. Bangladesh institute of development studies, pp.55-71.

Khan, m. I. 1970. Demand for food in Pakistan in 1975. The Pakistan development review, vol. 10(3), pp. 310-333. Paper no. 2480.

Kiani, a. 2008. An analysis of productivity growth and rate of return to research in agriculture sector of north west frontier province. Sarhad j. Agric, 24(3), 521-530.

Mahmood, m. A. Hussain, a. And sheikh, a. D. 2006. Recommended technologies and production practices at farm level: wheat scenario. In: malik, w. Sheikh, a. D. And sharif, m. (eds.) Socioeconomic research studies 2005-2006 Punjab.

Nadeem, m. And d. Byerlee. 2000. Productivity growth and resource degradation in pakistan’s punjab: a decomposition analysis. World bank policy research, working paper no. 2480 of Pakistan, m. Phil. Thesis submitted to quaid-i-azam university, islamabad.

Olajide, o. T. Akinlabi, b. H. And tijani, a. A. 2012. Agriculture resource and economic growth in Nigeria. European scientific journal, 8(22).

Raza, j. And siddiqui, w. 2014. Determinants of agricultural output in Pakistan: a johansen co-integration approach. Academic research international, 5(4), 30.

Salam, a. 1981. Farm tractorization, fertilizer use and productivity of mexican wheat in Pakistan. The Pakistan development review 20 (3): 323–345.

Sialh.m and carter m.r. 1996. Financial market efficiency in an agrarian economy: micro econometric analysis of the Pakistan Punjab. The journal of development studies, 32:771-798.





How to Cite

Hina Ali, & Hira Tahir. (2020). Pricing of Agricultural Capital Input in Pakistan: An Analysis of Bound Testing Approach . Review of Economics and Development Studies, 3(2), 101-110.