Trends and Factors Affecting Consumption of Fertilizer in Australia: The Moderating Role of Agri R&D Investment

Khairul Alom (), Delwar Akbar, Chengyuan Xu and Hong Tham Dong
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Khairul Alom: School of Business and Law, Central Queensland University, Rockhampton North, QLD 4701, Australia
Delwar Akbar: School of Business and Law, Central Queensland University, Rockhampton North, QLD 4701, Australia
Chengyuan Xu: Faculty of Science and Technology, Charles Darwin University, Casuarina, NT 0810, Australia
Hong Tham Dong: School of Business and Law, Central Queensland University, Rockhampton North, QLD 4701, Australia

Sustainability, 2025, vol. 17, issue 11, 1-20

Abstract: The Australian agriculture sector currently relies on imported fertilizers, which poses risks to price stability and increases the potential for supply chain disruptions. This study aims to investigate the trends and factors affecting fertilizer consumption in Australia, considering the moderating effects of agricultural GDP and agri R&D expenditure. The econometric models, including ARDL bound tests, Granger causality tests, and FMOLS, were used to analyze quarterly data from 2000 to 2023. The findings confirm that a significant long-run relationship exists among the variables of agricultural GDP, crop production, arable land, agricultural export–import ratio, and agricultural R&D expenditure. The moderating effects of agricultural GDP and agricultural R&D expenditure on fertilizer consumption were also found to be significant. The Granger causality test results indicate that bidirectional causality exists between agricultural GDP and fertilizer consumption, arable land and fertilizer consumption, employment and fertilizer consumption, and the export–import ratio and fertilizer consumption. The findings from the robustness checks confirm that all variables are co-integrated with fertilizer consumption. Thus, policymakers are advised to prioritize investment in agricultural R&D to promote sustainable fertilizer consumption and enhance agricultural value addition in Australia.

Keywords: agri R&D; fertilizers consumption; ARDL; agri export/import ratio (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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