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This paper empirically analyzes the relationship between Pakistan's industrial and agricultural sectors. Pakistan was chosen because of its status of a semi‐industrialized country with heavy dependence on the agricultural sector. The relationship between cotton production and industrial growth is also evaluated due to the prominence of this crop in Pakistani agriculture. The results indicate that these sectors are complementary, yet industry tends to benefit more from agricultural growth than vice versa. The timing of this information is critical, as Pakistan's policy makers now face major agricultural policy reforms in their quest for continued industrial development.
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Henneberry et al. (2000) studied this question.
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