Exploring the long-run relationship between financial inclusion and agricultural growth: evidence from Pakistan

Usman Farooq, Fu Gang, Zhenzhong Guan, Abdul Rauf, Abbas Ali Chandio and Faiza Ahsan

International Journal of Emerging Markets, 2021, vol. 18, issue 7, 1677-1696

Abstract: Purpose - This study aims to investigate the long-run relationship between financial inclusion and agricultural growth in Pakistan for the period of 1960–2018. Design/methodology/approach - The autoregressive distributed lag (ARDL) approach, the Johansen co-integration test and the dynamic ordinary least squared (DOLS) method are used for the evaluation. Findings - The results show that in both short- and long run, domestic credit has a significantly negative impact on the agricultural growth, while broad money and cropped area positively affected the agricultural growth in Pakistan in both cases. Practical implications - The government and policymakers need to develop strategies that bring together agriculturalists on a single platform so that the government can clearly distinguish the interests of these farmers and can obtain precise information for allocating agricultural expenditure and easing access to credit for small-scale agriculturalists. Originality/value - This is the first study to evaluate the impact of financial inclusion on the agricultural growth in Pakistan by using different econometric techniques, including the ARDL-bound approach, Johansen co-integration test and DOLS method.

Keywords: Financial inclusion; Agriculture growth; Co-integration; Pakistan (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-06-2019-0434

DOI: 10.1108/IJOEM-06-2019-0434

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