The Role Of Credit And Technology In Agriculture Development Of Pakistan

This study investigates the credit availability and technology adoption impact on maize production efficiency in Khyber Pakhtunkhwa(KPK)Province of Pakistan.Direct elicitation method was employed to collect the primary data from maize growers in four districts of KPK province.The results revealed that the mean technical efficiency difference between the two groups was 10.2 %.The outcomes of inefficient effect model demonstrated that the socioeconomic characteristics including the education of household head,family size,number of married family members,off farm income,farming experience,tractor drill,water irrigation through lined course,certified seed,extension services,household saving and credit size variable have positive effect on technical efficiency for both CCF and UCCF groups.The results also showed that the explanatory variables i.e.Age of household head and fragmented land had negative effect on technical efficiency for both groups.This study indicates that socioeconomic variables,land variables,institutional variable and climatic factors are influencing the choice of technology adoption in maize growers.The expected model outcome revealed that the maize growers experience,knowledge,area and type of land,livestock,credit access,climate,natural disasters and other soil parameters has considerable and significant impact on technology adoption of maize production,while the age,labor force,machinery,extension services,access to market and input prices have positive impact on technology adoption of maize production.Our results have significant implications for policies related to land use,interest rate and banking sectors expansion in the rural area of Pakistan.The study examines the asymmetric relationship between three crops and agriculture products trade with national gross domestic product of Pakistan and time series data used.The outcomes of asymmetric causality indicate that there is not causal relationships of negative and positive of independent variable with AGPD growth but AGDP negative shock have negative influence on rice and wheat production.The study main results show:(i)Cointegration test for long run the positive shocks in export and import have positive significant while exchange rate has positive effect the economic growth.(ii)Co-integration test for short run the positive shocks in import has positive significant and while Export and exchange rate have negative significant effect on economic growth.The symmetrical results show:(i)Export has unidirectional granger causality(ii),Exchange rate has bidirectional granger causality,and(iii)Import has not ganger causality with economic growth.In addition,the results demonstrated that causality relationship can help out policy maker to design such policies which are useful to economic growth of Pakistan.