An Empirical Analysis of Causal Relationships Between Agricultural Labour and Agricultural GDP in Libya

Fouzi Salih, Farag and Rossazana, Ab Rahim (2022) An Empirical Analysis of Causal Relationships Between Agricultural Labour and Agricultural GDP in Libya. International Journal of Academic Research in Business and Social Sciences, 12 (9). pp. 1565-1571. ISSN 2222-6990

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Abstract

The agricultural sector is the second largest sector contributing to the economy of Libya; yet empirical studies focusing on Libyan agricultural sector appear to be limited. Hence, the paper aims to investigate the causal relationship between agricultural labour and agricultural GDP in Libya over the study period of 2000-2019. The method employed in this study is the timeseries technique which consists of the unit–root tests, cointegration and the Granger causality test. The results of this study show that there is a cointegration between variables as per the Johansen Co integration test, while there is a uni-directional causal relationship running from agricultural GDP to agricultural labour in the long and short- run. Nevertheless, agricultural labour does not cause agricultural GDP in the long and short run. The findings imply that the Libyan government should focus more on the integration of technology advancement in the agricultural sector.

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