Abstract
Innovation adoptions in agriculture sustain high total factor productivity (TFP) growth and overcome a potential production gap, which is beneficial for food security. Research and development (R&D) innovation adoption in agriculture sector is dependent on producers’ willingness to adopt, knowledge capital spillovers, and financial capacity. This research aims to investigate the impact of R&D innovation adoption and climate factors on agriculture TFP growth in Pakistan. The annual time series data were collected from different sources for the period of 1972–2020. For measuring the agriculture TFP, this study adopted the Cobb Douglas and Translog production functions. To analyze the impact of R&D innovation adoption and climate change on agricultural productivity, the dynamic autoregressive distributive lag (ARDL) and two-stage least square (TSLS) approaches were applied for regression analysis. The study outcomes highlight that the agricultural innovation adoption has a significantly positive impact on agriculture TFP growth in Pakistan with weak farmers’ absorptive ability. According to the results, agriculture tractors, innovative seed distribution, and fertilizer consumptions make a significantly positive contribution to agriculture TFP growth. Further, rainfall shows a positive and significant impact on agricultural productivity, where a moderate climate is beneficial for agricultural productivity. The estimation results contain policy suggestions for sustainable R&D adoption and agrarians’ absorptive ability. Based on the obtained results, it has been suggested that producers should focus on R&D innovation adoption to attain higher productivity. The government needs to emphasize innovative technology adoption, specifically to implement the extension services to increase farmers’ education, skills based training, and networking among the farmers to enhance their knowledge capital and absorptive ability. The farmers should also focus on the adoption of climate smart agriculture that can be achieved through the proper utilization of rainwater. For this purpose, the government needs to develop small community dams and large-scale dams for better use of rainwater harvesting.
Highlights
The Global Agriculture and Productivity (GAP) report of 2020 shows that an additional 71–100 million people fell into extreme poverty due to the COVID-19 shutdown, and 235 million people are at high risk of acute hunger [1]
Three models are estimated to avoid the multicollinearity in the dynamic autoregressive distributive lag (ARDL) approach, while the two stage least square (TSLS) instrumental variable technique is applied as a remedy to endogeneity problems and to investigate the behavior of coefficient cleaning in the endogeneity problem
This study investigates the role of research and development (R&D) adoption in agriculture total factor productivity (TFP) growth in Pakistan
Summary
The Global Agriculture and Productivity (GAP) report of 2020 shows that an additional 71–100 million people fell into extreme poverty due to the COVID-19 shutdown, and 235 million people are at high risk of acute hunger [1]. Agriculture innovation and its adoption is an essential element to overcome the global food security and poverty challenges. Climatic vulnerability harms the agriculture output and creates food insecurity problems, especially in developing countries [2]. These food insecurity challenges may even lead to a negative impact on a global scale. Sustainable agriculture research and development (R&D) and its spillover shocks, climatic protection strategies, water management policies, and technology adoption in the agriculture sector have significant potential to save the world from a harmful climate and upcoming food security challenges. The adoption of innovative technology in the agriculture sector provides mechanization and permits adaptation of the optimum level of input. Agriculture innovations consolidate the higher level of output and sustain food availability in both developed and developing countries, which is helpful in food accessibility through international agriculture trade
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