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  • Application of ARDL model to capture the differences in causal relations operating in crop production across geographic regions: A study on Latin America and South Asia

Application of ARDL model to capture the differences in causal relations operating in crop production across geographic regions: A study on Latin America and South Asia

TERRA ECONOMICUS, , Vol. 21 (no. 4),

The identification of the causal relations between the determinants of crop production and the crop production index has serious policy implications. Given the importance attached to agriculture in Latin America & Caribbean Islands and Southern Asia, understanding the differences in the causal relations operating in crop production in both the regions is necessary, especially to capture the policy differentials, if any required, to combat underdevelopment. With this backdrop, the present study aims to figure out the differences between both the regions in the nature of causal relations existing among select factors associated with the crop production. The study is based on the World Bank data. The model used in the present study consists of a dependent variable in the form of crop production index that has dependence on its lagged values. The dependent variable is also influenced by the lagged values of a set of independent variables – share of permanent crop land in total land available in the region, fertilizer usage, carbon dioxide emission and GDP growth per capita. The study uses auto regressive distributed lag (ARDL) model for data analysis. The study finds that in Latin America & Caribbean Region no long run relations exist between the dependent and the independent variables, while in South Asia significant long run relations exist between them.
Citation: Neogi D. (2023). Application of ARDL model to capture the differences in causal relations operating in crop production across geographic regions: A study on Latin America and South Asia. Terra Economicus 21(4), 106–122. DOI: 10.18522/2073-6606-2023-21-4-106-122

Keywords: causal relations; crop production; carbon dioxide emission; GDP growth rate per capita; fertilizer

JEL codes: C01; N50; N56

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606