Effects of wheat yield and area under wheat crop on agricultural GDP in Pakistan: An econometric analysis

Abstract

This study investigates and explores the relationship between wheat crop yield, area under wheat crop, and agricultural gross domestic product (GDP) in Pakistan. Times series data from 1970-2015 were used in this study. The Phillips-Perron unit root test was used to check the stationarity of the data. The Johansen cointegration test was performed to evaluate the long-term relationships between the dependent and independent variables. An econometric ordinary least square method was applied to estimate the relationship between wheat crop yield, area under wheat crop, and agricultural GDP. The results of the Johansen cointegration test revealed a long-term relationship between the variables. The regression results indicate that wheat crop yield has a positive and significant relationship with agricultural GDP, while the area under wheat crop has a negative relationship with agricultural GDP. (C) 2017 The Authors. Published by IASE.