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Abstract

The main purpose of this study is to answer the question “Does Agriculture Production Matter For Economic Growth?”To fulfil this purpose we had toinvestigate the relationship between Agriculture Production and Economic Growth in India during the period 1961 to 2016. Vector Error Correction Method and Co-integration techniques are used for analysing the relationship between Agriculture Production and Economic Growth in this study. The Johnson Cointegration test result indicates that there is long-run equilibrium relationship between Agriculture Production and Economic Growth in India.The Vector Error Correction test reveals that there is Uni directional causality running fromEconomic Growthto Agriculture Production in the long run. It means Economic Growthleads to Agriculture Production but Agriculture Production does not lead toEconomic Growth in the long run. But in the short run Bidirectional causality exist betweenEconomic Growthand Agriculture Production. It means in short run Economic Growth leads to Agriculture Production and Agriculture Production leads to Economic Growth.

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