The role of climatic changes and financial development to the ASEAN agricultural output: a novel long-run evidence for sustainable production.

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.

The impact of climate change on agricultural productivity in Asian countries: a heterogeneous panel data approach.

While climate change is having serious impacts on agriculture and may require ongoing adaptation, short-run threats to global food security are also crucial for developing countries. We use dynamic and asymmetric panel autoregressive distributed lag estimators to investigate how the effects of climate change on agricultural productivity vary depending upon the short run and long run in Asia over the period of 1980-2016. The results confirmed that there is a long-run relationship between agricultural productivity and climate change variables; however, only CO2 emissions could be linked to agricultural productivity in the short run. Moreover, while the direction of this effect is positive for the short run, it turns into negative in the long run confirming that carbon fertilization in the atmosphere can to some extent have a positive effect on agricultural productivity.