THE ECONOMIC ROLE OF LIVESTOCK ASSETS IN COTTON PRODUCTIVITY IN PUNJAB, PAKISTAN

The present study was designed to determine the factors affecting cotton productivity in Punjab province of Pakistan. The factors considered in the study are livestock assets in addition to other conventional factors including farm inputs and socioeconomic characteristics. A Cobb Douglas production function was estimated. Impacts of livestock assets on various farm characteristics like share of Bt cotton, cotton area and dummy for good quality of land are considered. Findings of the study show that variables namely pesticide, irrigation, farming experience, cotton area, dummy for good quality land, dummy for off-farm income, dummy for livestock units, interaction terms of livestock units with pesticide and ratio of Bt cotton area to area under cotton are significantly related with cotton yield. Combined effect of livestock and pesticide use on cotton productivity is 0.38 percent whereas joint contribution of livestock and share of Bt cotton in cotton yield is 0.01 percent. Integrating livestock in farming system can have additional benefit of higher crop productivity and thereby improve farm income and livelihood of rural community.