Agriculture on the Road to Industrialization and Sustainable Economic Growth : An Empirical Investigation for Pakistan

The present empirical study investigates the dynamic link between the agricultural and industrial output of Pakistan economy using the Autoregressive Distributed Lag (ARDL) bounds testing approach. Empirical results suggest that agricultural output effect on the industrial output in the long run and short run but the industrial output effect the agricultural output only in the long run. The agricultural output effect on the industrial output more than the industrial output effect on the agricultural output. The error correction terms (ECT) indicates that when shock in industrial output more quickly (61% per year) adjusted agricultural output than the shock in agricultural output and adjustment in the industrial output (13% per year)