An Empirical Investigation of the Impact of R&D Expenditures and Climate Change on Wheat Productivity: Evidence from China, India, and Pakistan

Abstract

This study investigates empirically the impact of R&D investments, temperature, and rainfall on wheat yield in China, India, and Pakistan. Data from 1996 to 2018 was obtained from various data sources such as FAOSTAT, the Economics Survey of Pakistan, and World Development Indicators. Pooled Mean Group (PMG) and ARDL models were employed to obtain short-run and long-run relationships between crop yield and explanatory variables as a whole for the region and individual country. The results show that R&D expenditures are highly significant in the long run and the return to R&D is 10% in the region. For individual countries’ analysis, the return is 6%, 17%, and 12%, respectively for China, India, and Pakistan. For the region temperature increase negatively affects crop yield and the coefficient indicates that a percent increase in temperature will reduce the crop yield by 4% in the long run. It is concluded that both the climatic variables of temperature and rainfall have negative consequences for wheat yield. R&D investments are insignificant in the short run but crucial for long-term growth and food security.

Presenters

Imran Ullah
Lecturer, Economics, University of Buner, North-West Frontier, Pakistan

Details

Presentation Type

Paper Presentation in a Themed Session

Theme

2025 Special Focus—Sustainable Development for a Dynamic Planet: Lessons, Priorities, and Solutions

KEYWORDS

R&D Expenditures, Wheat Yield, PMG, ARDL, Climate Change, Temperature, Rainfall