Climate Change and Agro-based Food Competitiveness: Panel Data Analysis for Developing Countries
Keywords:
Climate Change, temperature, Agriculture, Competitiveness, Developing CountriesAbstract
Climate change and agricultural development are interconnected and are a fundamental challenge for developing countries. Many developing countries are highly affected by climate change, particularly the rise in temperature that significantly affects the agriculture sector, economic prosperity, and exports. The study aims to examine the relationship between climate change and the agriculture sector and the impact of climate change on agro-based food competitiveness of 80 developing countries for the period 1975 to 2023. The study utilizes 3 SLS method and confirms that an increase in temperature affects agricultural production and further deteriorates the agro-based food competitiveness of developing countries. Initially, developing countries increase agricultural production by utilizing pests and chemicals without taking safety measures that would enhance the temperature of developing countries. Similarly, industrialization, natural resources rent, and forest conversion affect the climate and increase temperature, which affects agricultural development and hence deteriorates competitiveness. On the contrary, inflation, globalization, urbanization, human capital or employment, and a rise in exchange rate directly affect agricultural competitiveness. The study suggests utilization of technology, water conservation, climate-smart agriculture practices like crop diversification, conservation and drought-resistant crop varieties can reduce vulnerability to climate changes.
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