EXPORT EARNINGS, ECONOMIC GROWTH AND CROP YIELD: EMPIRICAL EVIDENCE FROM PAKISTAN

Agriculture sector plays a very important role for the growth of developing countries like Pakistan. In fact it is usually referred as a back bone of these countries because these are the agro-based countries with lower manufacturing base. Agriculture sector contributes to growth through a variety of channels among which selfsufficiency in food, provision of raw materials to industrial sector; earning foreign exchange through cash crops; and providing employment to a large part of population are worth mentioning. In this research paper OLS technique is used to determine the relationship between the aggregate yield of crops and per capita gross domestic product and trade balance of major crops on over all trade balance. Aggregate yield of crops (rice, wheat, cotton and maize) and trade balance have significant impact on the per capita GDP and over all trade balance of Pakistan.