Agricultural Exports and Agricultural GDP Causal Relationship in Libya

The study examines the causal relationship between agricultural export and agricultural GDP in Libya during the period 2000-2018. Augmented Dickey Fuller (ADF) for stationarity test Augmented Dickey Fuller (ADF), Johansen test for Co-integration, and Vector Error Correction Model (VECM) were used. The causality findings show that there is a bi-directional causal relationship between agricultural export and agricultural GDP in long-run. Moreover, in short-run causality show that there is a uni-directional causal relationship flowing from agricultural GDP to agricultural export. The long-run causality result implies that agricultural export policies will boost the agricultural development of Libyan.