Agricultural Value Added in Pakistan: Roles of FDI, Technological Innovation, Employment, and Renewable Energy Consumption

Authors

  • Dr. Khawaja Asif Mehmood Assistant Professor of Economics, School of Economics, Bahauddin Zakariya University, Multan, Punjab, Pakistan.
  • Dr. Fareeha Riaz Assistant Professor, Department of Management Science, National University of Modern Languages, Islamabad, Pakistan.
  • Dr. Farzana Munir Assistant Professor, School of Economics, Bahauddin Zakariya University, Multan, Punjab, Pakistan.

DOI:

https://doi.org/10.62843/jssr.v6i1.716

Keywords:

Agriculture Value Added, Technological Innovation, FDI, Regulatory Quality, ARDL, Pakistan

Abstract

Agriculture value added is a key aspect for agrarian economies like Pakistan. This research examines the state of agriculture value added in the presence of Foreign Direct Investment (FDI), technological innovation, employment in the agriculture sector, and usage of renewable energy. The data was collected from 1990 to 2025. The analysis is done by using Autoregressive Distributed Lag (ARDL). The results confirm that FDI and technological innovation positively affect agriculture value added in Pakistan. Of renewable energy, the results are surprisingly negative. The policy option is to ensure a consistent flow of FDI and a productive usage of technology for better agricultural productivity.

Author Biography

  • Dr. Khawaja Asif Mehmood, Assistant Professor of Economics, School of Economics, Bahauddin Zakariya University, Multan, Punjab, Pakistan.

    Corresponding Author: khawjaasif@bzu.edu.pk

References

Andrianarison, F., Kamdem, C. B., & Che Kameni, B. (2022). Factors enhancing agricultural productivity under innovation technology: Insights from Cameroon. African Journal of Science Technology Innovation and Development, 14(5), 1173–1183. https://doi.org/10.1080/20421338.2021.1937816

Bagri, P. (2024). Agricultural innovation: The impact of modern technologies. ShodhKosh: Journal of Visual and Performing Arts, 5(5). https://doi.org/10.29121/shodhkosh.v5.i5.2024.2749

Cloete, K., Davids, T., Merwe, M. van der, Meyer, F., & Pienaar, L. (2025). Case in point: estimating the impact of loadshedding on the Western Cape agricultural sector. Agrekon, 64(3–4), 432–451. https://doi.org/10.1080/03031853.2025.2584218

Danda, R. R. (2023). Innovations in agricultural machinery: Assessing the impact of advanced technologies on farm efficiency. Journal of Artificial Intelligence and Big Data, 3(1), 29–48. https://doi.org/10.31586/jaibd.2023.1156

Dimitrova, A. (2022). Technological innovations in agriculture as a way to increase food security. Economic Thought Journal, 6(6), 692–704. https://doi.org/10.56497/etj2267604

Epaphra, M., & Mwakalasya, A. H. (2017). Analysis of foreign direct investment, agricultural sector and economic growth in Tanzania. Modern Economy, 08(01), 111–140. https://doi.org/10.4236/me.2017.81008

Epor, S. O., & Akande, J. O. (2025). Sustainable development in emerging economies: Comparing the impacts of green finance and financial inclusion. Modern Finance, 3(4), 1–21. https://doi.org/10.61351/mf.v3i4.259

Gopalakrishna M, D. G. (2019). Foreign Direct Investment and Indian agriculture: Its pros and cons. EPRA International Journal of Agriculture and Rural Economic Research, 15–17. https://doi.org/10.36713/epra2704

Gunasekera, D., Cai, Y., & Newth, D. (2015). Effects of foreign direct investment in African agriculture. China Agricultural Economic Review, 7(2), 167–184. https://doi.org/10.1108/caer-08-2014-0080

Huang, L., & Ping, Y. (2024). The impact of technological innovation on agricultural green total factor productivity: The mediating role of environmental regulation in China. Sustainability, 16(10), 4035. https://doi.org/10.3390/su16104035

International Energy Agency. (2014). Capturing the multiple benefits of energy efficiency. Report (Brochure). Available at: http://www.iea.org/termsandconditionsuseandcopyright/

Joseph, J. (2025). Examining foreign direct investment effects on agricultural productivity in Sub-Sharan African economies. International Economics, 184(2025), 1-15.

Louisiana. (2013). Louisiana's clean energy resources and economy (Brochure), report, March 1; Golden, Colorado. Available at: https://digital.library.unt.edu/ark:/67531/metadc832099/:

Manta, A. G. (2026). From sustainability narratives to digital infrastructures: Mapping the transformation of smart agri-food systems. Foods (Basel, Switzerland), 15(3), 469. https://doi.org/10.3390/foods15030469

Montesclaros, J. M. L., & Teng, P. S. (2021). Agriculture and food security in Asia. In Climate change, disaster risks, and human security: Asian experience and perspectives (pp. 137-168). Singapore: Springer Singapore.

Padda, I. U. H. (2026). Investigating the long-term and short-term effects of climate change on agricultural productivity: Evidence from Pakistan. Social Science Review Archives, 3(4), 2410-2429.

Rahman, M. C., Rahaman, M. S., Sarkar, M. A. R., & Islam, M. A. (2024). Foreign direct investment and agricultural output nexus in Bangladesh: An autoregressive distributed lag approach. Journal of Agriculture and Food Research, 15(101042), 101042. https://doi.org/10.1016/j.jafr.2024.101042

Samanta, R., & Saha, B. (2026). Affordable precision agriculture: A deployment-oriented review of low-cost, low-power Edge AI and TinyML for resource-constrained farming systems. In arXiv [cs.ET]. https://doi.org/10.48550/arXiv.2603.15085

Sangulla, L. J., George, W., & Mwinuka, L. (2025). Foreign direct investment and the agriculture sector performance in Tanzania: an autoregressive distributed lag approach. Cogent Food & Agriculture, 11(1). https://doi.org/10.1080/23311932.2025.2515489

Sansika, N., Sandumini, R., Kariyawasam, C., Bandara, T., Wisenthige, K., & Jayathilaka, R. (2023). Impact of economic globalisation on value-added agriculture, globally. PLOS ONE, 18(7), 1-17. https://doi.org/10.1371/journal.pone.0289128

Shah, W. U. H., Lu, Y., Liu, J., Rehman, A., & Yasmeen, R. (2024). The impact of climate change and production technology heterogeneity on China’s agricultural total factor productivity and production efficiency. The Science of the Total Environment, 907(168027), 168027. https://doi.org/10.1016/j.scitotenv.2023.168027

Singh, A. (1993). Measurement of energy use in agriculture. Outlook on Agriculture, 22(2), 119–121. https://doi.org/10.1177/003072709302200210

Sinha, J. K. (2024). Assessing GVA contributions, FDI impact, economic growth and trade openness on agricultural productivity in India: An ARDL approach. Digital Journal of Science, 2(3), 124–142.

Situma, M. P. (2025). Powering sustainable agricultural growth: The impact of renewable energy consumption on Kenya’s agriculture sector. International Journal of Research and Scientific Innovation, 12(10), 3424–3436. https://doi.org/10.51244/ijrsi.2025.1210000297

Sultana, Z., & Sadekin, M. N. (2023). The impact of FDI on the agriculture sector: A case study from Bangladesh. Heliyon, 9(12), e22983. https://doi.org/10.1016/j.heliyon.2023.e22983

United States Office of Energy Markets and End Use. (1991). Changes in energy intensity in the manufacturing sector. Energy Information Administration, Energy Markets and End Use. https://purl.fdlp.gov/GPO/LPS28838

Venturini, R. E. (2025). Technological innovations in agriculture: the application of Blockchain and Artificial Intelligence for grain traceability and protection. Brazilian Journal of Development, 11(3), e78100. https://doi.org/10.34117/bjdv11n3-007

Wabwile, I., Ali, U. A., Simiyu, E. J., & Ngala, C. (2024). foreign direct investment and its effect on agricultural productivity Kenya. International Journal of Finance & Banking Studies, 13(4), 48–57. https://doi.org/10.20525/ijfbs.v13i4.3736

Wang, J., Jiang, C., Li, M., Zhang, S., & Zhang, X. (2023). Renewable energy, agriculture, and carbon dioxide emissions nexus: implications for sustainable development in sub-Saharan African countries. Sustainable Environment Research, 33(1). https://doi.org/10.1186/s42834-023-00193-8

Yang, F., Ibrahim, R. L., Ajide, K. B., & Al-Faryan, M. A. S. (2024). Examining the ecological effects of energy transition, environmental technology, and structural change in BRICS economies: implications for sustainable development. Energy Sources, Part B: Economics, Planning, and Policy. 19(1), 1-20. https://doi.org/10.1080/15567249.2024.2419956

Downloads

Published

2026-03-30

Issue

Section

Articles

How to Cite

Agricultural Value Added in Pakistan: Roles of FDI, Technological Innovation, Employment, and Renewable Energy Consumption. (2026). Journal of Social Sciences Review, 6(1), 345-354. https://doi.org/10.62843/jssr.v6i1.716