Impact of Water Management on Agricultural Production

This paper explores the impact of water management on output, labor, and capital growth for an agriculture-based developing economy like Pakistan. According to empirical findings, capital stock and labor force in the agriculture sector significantly affect output growth. Improvement of capital stock in the form of mechanization, improved seeds, fertilizers and pesticides on one hand, and labor force skills, techniques and management, on the other hand, will bring positive and significant impact on agricultural output. Any improvement in policy management by authorities will enhance agricultural production manifold. Water at farm gate, tube wells, and access to credit of farmers increase agricultural output by enhancing the productivity of capital and labor. Proper water management will result in efficient allocation of resources and has an indirect positive impact on growth of output. To increase overall efficiency, an irrigation technology that efficiently uses water for intensive crop production must be developed.