Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh

This study aims to investigate dynamic relationships between research and development (R&D) expenditure, climate change (measured by annual rainfall and temperature variations), human capital (proxied by literacy) and total factor productivity (TFP) growth in Bangladesh agriculture. Pesaran’s Po...

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Main Authors: Salim, Ruhul, Hassan, Kamrul, Rahman, Sanzidur
Format: Journal Article
Language:English
Published: Taylor & Francis 2019
Online Access:http://hdl.handle.net/20.500.11937/77205
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author Salim, Ruhul
Hassan, Kamrul
Rahman, Sanzidur
author_facet Salim, Ruhul
Hassan, Kamrul
Rahman, Sanzidur
author_sort Salim, Ruhul
building Curtin Institutional Repository
collection Online Access
description This study aims to investigate dynamic relationships between research and development (R&D) expenditure, climate change (measured by annual rainfall and temperature variations), human capital (proxied by literacy) and total factor productivity (TFP) growth in Bangladesh agriculture. Pesaran’s Pooled Mean Group (PMG) estimator is used to a unique panel data of 17 regions of Bangladesh covering a 61-year period (1948–2008). In addition, the panel vector autoregression (PVAR) model is also applied to trace the responsiveness of TFP from a shock to R&D, extension services, and literacy rate. Results reveal that R&D has an insignificant impact on TFP in the short-run, while it has a significant positive impact in the long-run. The contributions of climate variables (i.e., rainfall and temperature variations) are highly significant and negative in the long run. The literacy rate is found to have a significant positive impact on TFP as expected. These results suggest that agricultural R&D investment and human capital could play an important role to ameliorate the adverse effects of climate change in the agricultural sector of Bangladesh.
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spelling curtin-20.500.11937-772052021-06-16T06:37:06Z Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh Salim, Ruhul Hassan, Kamrul Rahman, Sanzidur This study aims to investigate dynamic relationships between research and development (R&D) expenditure, climate change (measured by annual rainfall and temperature variations), human capital (proxied by literacy) and total factor productivity (TFP) growth in Bangladesh agriculture. Pesaran’s Pooled Mean Group (PMG) estimator is used to a unique panel data of 17 regions of Bangladesh covering a 61-year period (1948–2008). In addition, the panel vector autoregression (PVAR) model is also applied to trace the responsiveness of TFP from a shock to R&D, extension services, and literacy rate. Results reveal that R&D has an insignificant impact on TFP in the short-run, while it has a significant positive impact in the long-run. The contributions of climate variables (i.e., rainfall and temperature variations) are highly significant and negative in the long run. The literacy rate is found to have a significant positive impact on TFP as expected. These results suggest that agricultural R&D investment and human capital could play an important role to ameliorate the adverse effects of climate change in the agricultural sector of Bangladesh. 2019 Journal Article http://hdl.handle.net/20.500.11937/77205 10.1080/00036846.2019.1697422 English Taylor & Francis fulltext
spellingShingle Salim, Ruhul
Hassan, Kamrul
Rahman, Sanzidur
Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh
title Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh
title_full Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh
title_fullStr Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh
title_full_unstemmed Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh
title_short Impact of R&D expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from Bangladesh
title_sort impact of r&d expenditures, rainfall and temperature variations in agricultural productivity: empirical evidence from bangladesh
url http://hdl.handle.net/20.500.11937/77205