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    Exploring the impact of R&D and climate change on agricultural productivity growth: the case of Western Australia

    Access Status
    Open access via publisher
    Authors
    Salim, Ruhul
    Islam, Mohammad Nazrul
    Date
    2010
    Type
    Journal Article
    
    Metadata
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    Citation
    Salim, Ruhul A. and Islam, M. Nazrul. 2010. Exploring the impact of R&D and climate change on agricultural productivity growth: the case of Western Australia. Australian Journal of Agricultural and Resource Economics. 54 (4): pp. 561-582.
    Source Title
    Australian Journal of Agricultural and Resource Economics
    DOI
    10.1111/j.1467-8489.2010.00514.x
    ISSN
    1364985X
    URI
    http://hdl.handle.net/20.500.11937/4764
    Collection
    • Curtin Research Publications
    Abstract

    This article empirically examines the impact of R&D and climate change on the WesternAustralian Agricultural sector using standard time series econometrics. Based onhistorical data for the period of 1977–2005, the empirical results show that both R&Dand climate change matter for long-run productivity growth. The long-run elasticityof total factor productivity (TFP) with respect to R&D expenditure is 0.497, while thatof climate change is 0.506. There is a unidirectional causality running from R&Dexpenditure to TFP growth in both the short run and long run. Further, the variancedecomposition and impulse response function confirm that a significant portion ofoutput and productivity growth beyond the sample period is explained by R&Dexpenditure. These results justify the increase in R&D investment in the deterioratingclimatic condition in the agricultural sector to improve the long-run prospects ofproductivity growth.

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