Modeling Land Utilization, Agricultural Transformation and Agrarian Labor in Pakistan

This study analyzes the interaction among land utilization, agricultural transformation and agrarian labor in Pakistan for the period 1991-2013. This study adopts VECM for the empirical analysis, which comprises ADF unit root test, Cointegration, error correction models, impulse response function and variance decomposition analysis. The study suggests that land utilization could be improved through the implementation of advance tools of agriculture, which obviously yields a high-level productivity. Contrary to this; the agricultural transformation holds negative effect on labor force engaged with this sector because the advancement in tools of production requires lesser manpower of labor.