Climate change and agricultural productivity in Asian and Pacific countries: how does research and development matter?

Abstract

PurposeThis study empirically examines the impact of climate change and agricultural research and development (R&D) as well as their interaction on agricultural productivity in 12 selected Asian and Pacific countries over the period of 1990–2018.Design/methodology/approachVarious estimation methods for panel data, including Fixed Effects (FE), the Feasible Generalized Least Squares (FGLS) and two-step System Generalized Method of Moments (SGMM) were used.FindingsResults show that both proxies of climate change – temperature and precipitation – have negative impacts on agricultural productivity. Notably, agricultural R&D investments not only increase agricultural productivity but also mitigate the detrimental impact of climate change proxied by temperature on agricultural productivity. Interestingly, climate change proxied by precipitation initially reduces agricultural productivity until a threshold of agricultural R&D beyond which precipitation increases agricultural productivity.Practical implicationsThe findings imply useful policies to boost agricultural productivity by using R&D in the context of rising climate change in the vulnerable continent.Originality/valueThis study contributes to the literature in two ways. First, this study examines how climate change affects agricultural productivity in Asian and Pacific countries – those are most vulnerable to climate change. Second, this study assesses the role of R&D in improving agricultural productivity as well as its moderating effect in reducing the harmful impact of climate change on agricultural productivity.