Search

This paper examines the impact of climate variables and financial development on agricultural value-added and cereal production in selected Southeast Asian economies from 1970 to 2016. The current research applies second-generation advanced techniques to accomplish robust and reliable outcomes. The findings from the FM-OLS estimation disclose that climatic factors, for instance, CO2e and average temperature, impact both agricultural value-added and cereal production negatively, and financial development has an inverted U-shaped influence on both agricultural value-added and cereal production. Meanwhile, other important factors, including cropped area, income level, and rural labor force, significantly improve agricultural value-added and cereal production. Furthermore, the FM-OLS estimator's D-H panel causality test outcomes are reliable. The findings of our study reveal that both the short- and long-run risks of climatic changes to the agricultural sector pose a large-scale threat to food security in Southeast Asian economies. As a result, a robust and stable financial development in terms of governance of climate change finance in the agriculture sector must be achieved to enhance farmers' ability to adapt to current and future climate change adverse impacts., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

• We assessed the climate change impact on wheat production in China. • We employed the FGLS, DOLS, and D–K estimation techniques. • Temperature negatively affected wheat production in the long–run. • Precipitation contributed positively to wheat production in the long-run. • Agro–chemical input (fertilizer use) enhanced wheat production in the long–run. Northern and Southern regions are the two major wheat production belts of China. Agro–climatic resources have changed significantly in recent years, threatening staple food production in these regions. As a result, it is critical to investigate the long–term effect of climate change and agri–inputs on wheat production in China's top six wheat producing provinces (Hebei, Shandong, Henan, Jiangsu, Anhui, and Hubei) from 1995 to 2020. The estimated long-run results from the FGLS, DOLS, and D–K estimators revealed that climatic factors, specifically temperature, had a negative impact on wheat production, while precipitation had a positive impact. The findings also revealed that agrochemical inputs, such as fertilizer, increases wheat production, whereas pesticide use decreases wheat production significantly. The results from the Dumitrescu–Hurlin panel causality test showed a bidirectional causality between rainfall, fertilizer use, and cultivated area with wheat production, while a unidirectional causality association is running from labor force to wheat production. The current study provides several critical policy recommendations for China's sustainable food production through green agricultural practices and robust climate mitigation strategies. [Display omitted] [ABSTRACT FROM AUTHOR]