Published Online:October 2025
Product Name:The IUP Journal of Applied Finance
Product Type:Article
Product Code:IJAF031225
DOI:10.71329/IUPJAF/2025.31.4.62-75
Author Name:Tejesh H R
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:62-75
The paper investigates the relationship between agricultural output and employment in India from 1991 to 2024 using time series analysis. Vector error correction model (VECM) was applied to assess this link. The empirical results show that there is a significant long-term connection between agricultural production and employment in the agricultural sector. However, in the short term, changes in production do not notably influence employment, and vice versa. Additionally, there was no evidence of a direct causal relationship between the two. Both agricultural production and employment respond to their own past changes, with employment showing a stronger negative reaction to its own shocks. These findings emphasize the need for policies that boost agricultural productivity and support sustainable employment opportunities in the sector.
The agricultural sector is essential to Indian economy as it contributes around 16% to gross domestic product (GDP), besides its significant contributions to food security and employment.