Abstract

This study has examined the output of sugarcane and its impact of economic growth of Pakistan. Sugarcane has positive impact on economic growth of Pakistan. Data is taken from 1981-2013 and taken from different sources. An ARDL approach to cointegration is used to investigate the long-run cointegration in the series. Then, VECM test is applied and investigated the short and long-run relationship. The study reveals that Pakistan has efficient potential in sugarcane sector of Pakistan. Prices of energy and prices of fertilizer badly affected the output of sugarcane sector. Investment in agriculture has a long term relationship with output of sugarcane.