This paper is empirically investigated the causal relationships between gross domestic product and agricultural production in Libya by using annual time series data during the period (1970 to 2012). Granger causality, cointegration, and error correction techniques were used in order to determine the long run equilibrium relationship and the direction of the causality in both short run and long run. The cointegration test indicated the existence of long run equilibrium relationship between agricultural production and the Gross Domestic Product. The causality test based on error correction techniques indicated that there is an unidirectional causality relationship between agricultural production and the Gross Domestic Product in the short run. This result means that the agricultural sector in Libya is expected to play a major role in the future to determine the growth rate of the economy with further expected development of the agricultural sector.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.