Exploring the impact of R&D and climate change on agricultural productivity growth: the case of Western Australia

Ruhul Salim and Nazrul Islam

Australian Journal of Agricultural and Resource Economics, 2010, vol. 54, issue 4, 22

Abstract: This article empirically examines the impact of R&D and climate change on the Western Australian Agricultural sector using standard time series econometrics. Based on historical data for the period of 1977–2005, the empirical results show that both R&D and climate change matter for long-run productivity growth. The long-run elasticity of total factor productivity (TFP) with respect to R&D expenditure is 0.497, while that of climate change is 0.506. There is a unidirectional causality running from R&D expenditure to TFP growth in both the short run and long run. Further, the variance decomposition and impulse response function confirm that a significant portion of output and productivity growth beyond the sample period is explained by R&D expenditure. These results justify the increase in R&D investment in the deteriorating climatic condition in the agricultural sector to improve the long-run prospects of productivity growth.

Keywords: Environmental Economics and Policy; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (12)

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Journal Article: Exploring the impact of R&D and climate change on agricultural productivity growth: the case of Western Australia * (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:162054

DOI: 10.22004/ag.econ.162054

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