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R&D Innovation Adoption, Climatic Sensitivity, and Absorptive Ability Contribution for Agriculture TFP Growth in Pakistan

Author

Listed:
  • Muhammad Usman

    (Department of Economics, Arid Agriculture University Rawalpindi, Rawalpindi 46000, Pakistan)

  • Gulnaz Hameed

    (Department of Economics, Arid Agriculture University Rawalpindi, Rawalpindi 46000, Pakistan)

  • Abdul Saboor

    (Dean Faculty of Social Sciences, Arid Agriculture University Rawalpindi, Rawalpindi 46000, Pakistan)

  • Lal K. Almas

    (Paul Engler College of Agriculture & Natural Sciences, West Texas A&M University, Canyon, TX 79016, USA)

  • Muhammad Hanif

    (Department of Statistics and Mathematics, Arid Agriculture University Rawalpindi, Rawalpindi 46000, Pakistan)

Abstract

Innovation adoptions in agriculture sustain high total factor productivity (TFP) growth and overcome a potential production gap, which is beneficial for food security. Research and development (R&D) innovation adoption in agriculture sector is dependent on producers’ willingness to adopt, knowledge capital spillovers, and financial capacity. This research aims to investigate the impact of R&D innovation adoption and climate factors on agriculture TFP growth in Pakistan. The annual time series data were collected from different sources for the period of 1972–2020. For measuring the agriculture TFP, this study adopted the Cobb Douglas and Translog production functions. To analyze the impact of R&D innovation adoption and climate change on agricultural productivity, the dynamic autoregressive distributive lag (ARDL) and two-stage least square (TSLS) approaches were applied for regression analysis. The study outcomes highlight that the agricultural innovation adoption has a significantly positive impact on agriculture TFP growth in Pakistan with weak farmers’ absorptive ability. According to the results, agriculture tractors, innovative seed distribution, and fertilizer consumptions make a significantly positive contribution to agriculture TFP growth. Further, rainfall shows a positive and significant impact on agricultural productivity, where a moderate climate is beneficial for agricultural productivity. The estimation results contain policy suggestions for sustainable R&D adoption and agrarians’ absorptive ability. Based on the obtained results, it has been suggested that producers should focus on R&D innovation adoption to attain higher productivity. The government needs to emphasize innovative technology adoption, specifically to implement the extension services to increase farmers’ education, skills based training, and networking among the farmers to enhance their knowledge capital and absorptive ability. The farmers should also focus on the adoption of climate smart agriculture that can be achieved through the proper utilization of rainwater. For this purpose, the government needs to develop small community dams and large-scale dams for better use of rainwater harvesting.

Suggested Citation

  • Muhammad Usman & Gulnaz Hameed & Abdul Saboor & Lal K. Almas & Muhammad Hanif, 2021. "R&D Innovation Adoption, Climatic Sensitivity, and Absorptive Ability Contribution for Agriculture TFP Growth in Pakistan," Agriculture, MDPI, vol. 11(12), pages 1-18, November.
    • Handle: RePEc:gam:jagris:v:11:y:2021:i:12:p:1206-:d:692025
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    References listed on IDEAS

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    1. Muhammad Usman & Muhammad Wasim & Rao Bahkat Yawar, 2023. "Assessing the Economic Implications of Climate Change on Agriculture in Punjab in Pakistan: Farmers Perception and Satisfaction," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 501-518.
    2. Muhammad Usman & Muhammad Wasim & Rao Bahkat Yawar, 2023. "Assessing the Economic Implications of Climate Change on Agriculture in Punjab in Pakistan: Farmers Perception and Satisfaction," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 348-365.

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