Measuring the Indicators of Cereal Production in Agricultural Land Use Effectiveness Growth in SAARC Countries: Evidence from Panel Data Modelling

Abstract

Cereal production, cooperation and economic growth need to be distinct to generate policies that keep the environment make sure sustainable agricultural development around the world. Panel data comprise of the observations of manifold phenomena obtained over lots of time periods for either the same firms or individuals. The current study was conducted with an aim to find the efficiency growth in agricultural land and also find cereal production best model for South Asian Association for Regional Cooperation countries. The study used the secondary panel data of cereal production obtained from the World Bank. Moreover, for the selection of variables, pool-ability, Fixed Effect Model (FEM) and Random Effect Model (REM) were applied by F-test, Chow Test, Hausamn specification test and model selection criteria. Through analysis of present data, we proposed a FEM that can assume both the cross section and period effects to be fixed. It can forecast the cereal production for any given country contained by a specific forthcoming year. Governments in these countries must take the necessary steps to maintain agricultural land and encourage farmers to increase arable land in order to satisfy the food demands of SAARC's rising population.