Climate change and crop production nexus: assessing the role of technological development for sustainable agriculture in Vietnam

PurposeThis study aims to examine the effects of climate change and agricultural technologies on crop production in Vietnam for the period 1990-2018.Design/methodology/approachSeveral econometric techniques - such as the augmented Dickey-Fuller, Phillips-Perron, the autoregressive distributed lag (ARDL) bounds test, variance decomposition method (VDM) and impulse response function (IRF) are used for the empirical analysis.FindingsThe results of the ARDL bounds test confirm the significant dynamic relationship among the variables under consideration, with a significance level of 1%. The primary findings indicate that the average annual temperature exerts a negative influence on crop yield, both in the short term and in the long term. The utilization of fertilizer has been found to augment crop productivity, whereas the application of pesticides has demonstrated the potential to raise crop production in the short term. Moreover, both the expansion of cultivated land and the utilization of energy resources have played significant roles in enhancing agricultural output across both in the short term and in the long term. Furthermore, the robustness outcomes also validate the statistical importance of the factors examined in the context of Vietnam.Research limitations/implicationsThis study provides persuasive evidence for policymakers to emphasize advancements in intensive agriculture as a means to mitigate the impacts of climate change. In the research, the authors use average annual temperature as a surrogate measure for climate change, while using fertilizer and pesticide usage as surrogate indicators for agricultural technologies. Future research can concentrate on the impact of ICT, climate change (specifically pertaining to maximum temperature, minimum temperature and precipitation), and agricultural technological improvements that have an impact on cereal production.Originality/valueTo the best of the authors' knowledge, this study is the first to examine how climate change and technology effect crop output in Vietnam from 1990 to 2018. Various econometrics tools, such as ARDL modeling, VDM and IRF, are used for estimation.