IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i6p3613-d774749.html
   My bibliography  Save this article

Towards Sustainable Agriculture in China: Assessing the Robust Role of Green Public Investment

Author

Listed:
  • Xincai Gao

    (School of Economics, Lanzhou University, Lanzhou 730000, China)

  • Lin Ji

    (School of Economics, Lanzhou University, Lanzhou 730000, China)

  • Abbas Ali Chandio

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Amber Gul

    (College of Management, Sichuan Agricultural University, Chengdu 611130, China)

  • Martinson Ankrah Twumasi

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Fayyaz Ahmad

    (School of Economics, Lanzhou University, Lanzhou 730000, China)

Abstract

This paper reviews the long-term impact of public investments on irrigation and agricultural research and development along with other control variables, including physical capital, irrigated area, fertilizer consumption, level of mechanization, and CO 2 emissions on China’s agricultural output from 1986 to 2017. This study applied various econometric methods such as the ARDL bound-testing approach and Johansen co-integration procedure to determine the long-term co-integrating connection amid the variables. The empirical outcomes from the ARDL bound-testing method confirm a long-term co-integrating connection among the variables. The long-run results demonstrated that public investment in agricultural research and development and irrigation have a substantial positive effect on agricultural productivity. Furthermore, results revealed that physical capital and fertilizer consumption also have a significant positive effect on agricultural output; however, CO 2 emissions have a substantial negative effect on agricultural production. These findings therefore suggest that the policy makers of China should initiate more effective policies to increase irrigation and agricultural research and development investments. Increasing irrigation and agricultural research and development investments will enhance agricultural productivity by ensuring food security in the country.

Suggested Citation

  • Xincai Gao & Lin Ji & Abbas Ali Chandio & Amber Gul & Martinson Ankrah Twumasi & Fayyaz Ahmad, 2022. "Towards Sustainable Agriculture in China: Assessing the Robust Role of Green Public Investment," Sustainability, MDPI, vol. 14(6), pages 1-18, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3613-:d:774749
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/6/3613/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/6/3613/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Benin, Samuel & Mogues, Tewodaj & Cudjoe, Godsway & Randriamamonjy, Josee, 2009. "Public expenditures and agricultural productivity growth in Ghana," 2009 Conference, August 16-22, 2009, Beijing, China 51634, International Association of Agricultural Economists.
    2. Adolph Wagner, 1958. "Three Extracts on Public Finance," International Economic Association Series, in: Richard A. Musgrave & Alan T. Peacock (ed.), Classics in the Theory of Public Finance, pages 1-15, Palgrave Macmillan.
    3. Fan, Shenggen & Jitsuchon, Somchai & Methakunnavut, Nuntaporn, 2004. "The importance of public investment for reducing rural poverty in middle-income countries: the case of Thailand," DSGD discussion papers 7, International Food Policy Research Institute (IFPRI).
    4. Lingxiao WANG & Adelina DUMITRESCU PECULEA & Handuo XU, 2016. "The relationship between public expenditure and economic growth in Romania: Does it obey Wagner’s or Keynes’s Law?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 41-52, Autumn.
    5. Mary O. Agboola & Festus V. Bekun, 2019. "Does Agricultural Value Added Induce Environmental Degradation? Empirical Evidence from an Agrarian Country," Working Papers of the African Governance and Development Institute. 19/040, African Governance and Development Institute..
    6. Julia Hall & Grant M Scobie, 2006. "The Role of R&D in Productivity Growth: The Case of Agriculture in New Zealand: 1927 to 2001," Treasury Working Paper Series 06/01, New Zealand Treasury.
    7. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    8. L. Gutierrez & M. M. Gutierrez, 2003. "International R&D spillovers and productivity growth in the agricultural sector. A panel cointegration approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(3), pages 281-303, September.
    9. Dowrick, Steve & Gemmell, Norman, 1991. "Industrialisation, Catching Up and Economic Growth: A Comparative Study across the World's Capitalist Economies," Economic Journal, Royal Economic Society, vol. 101(405), pages 263-275, March.
    10. Timmer, C. Peter, 1995. "Getting agriculture moving: do markets provide the right signals?," Food Policy, Elsevier, vol. 20(5), pages 455-472, October.
    11. Thirtle, Colin & Lin, Lin & Piesse, Jenifer, 2003. "The Impact of Research-Led Agricultural Productivity Growth on Poverty Reduction in Africa, Asia and Latin America," World Development, Elsevier, vol. 31(12), pages 1959-1975, December.
    12. John Loizides & George Vamvoukas, 2005. "Government expenditure and economic growth: Evidence from trivariate causality testing," Journal of Applied Economics, Universidad del CEMA, vol. 8, pages 125-152, May.
    13. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    14. Lingxiao WANG & Adelina DUMITRESCU PECULEA & Handuo XU, 2016. "The relationship between public expenditure and economic growth in Romania: Does it obey Wagner’s or Keynes’s Law?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 41-52, Autumn.
    15. Titus O. Awokuse & Ruizhi Xie, 2015. "Does Agriculture Really Matter for Economic Growth in Developing Countries?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(1), pages 77-99, March.
    16. Mohd Shahidan Shaari & Diana Nabila Chau Abdullah & Nur Salimah Binti Alias & Nor Syamimi Mohamed Adnan, 2016. "Positive and Negative Effects of Research and Development," International Journal of Energy Economics and Policy, Econjournals, vol. 6(4), pages 767-770.
    17. Ruhul A. Salim & Nazrul Islam, 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, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 561-582, October.
    18. Unknown, 1961. "The Role of Agriculture in Economic Development," International Journal of Agrarian Affairs, International Association of Agricultural Economists, vol. 3(2), pages 1-1, April.
    19. Abbas Ali Chandio & Yuansheng Jiang & Abdul Rauf & Fayyaz Ahmad & Waqas Amin & Khurram Shehzad, 2020. "Assessment of Formal Credit and Climate Change Impact on Agricultural Production in Pakistan: A Time Series ARDL Modeling Approach," Sustainability, MDPI, vol. 12(13), pages 1-21, June.
    20. Muhammad Shahbaz & Muhammad Shahbaz Shabbir & Muhammad Sabihuddin Butt, 2013. "Effect of financial development on agricultural growth in Pakistan," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 40(8), pages 707-728, June.
    21. Fan, Shenggen & Mogues, Tewodaj & Benin, Sam, 2009. "Setting priorities for public spending for agricultural and rural development in Africa:," Policy briefs 12, International Food Policy Research Institute (IFPRI).
    22. Bashir Olayinka Kolawole, 2016. "Government Spending and Inclusive-Growth Relationship in Nigeria: An Empirical Investigation," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 19(2), pages 33-56, November.
    23. Tobechi F. Agbanike & Chinazaekpere Nwani & Uwazie I. Uwazie & Lasbrey I. Anochiwa & Thank-God C. Onoja & Ikwor O. Ogbonnaya, 2019. "Oil price, energy consumption and carbon dioxide (CO2) emissions: insight into sustainability challenges in Venezuela," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-26, December.
    24. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    25. Mr. Saad A. Alshahrani & Mr. Ali J Al-Sadiq, 2014. "Economic Growth and Government Spending in Saudi Arabia: an Empirical Investigation," IMF Working Papers 2014/003, International Monetary Fund.
    26. Mullen, John D. & Cox, Thomas L., 1994. "R&D and Productivity Growth in Australian Broadacre Agriculture," 1994 Conference (38th), February 8-10, 1994, Wellington, New Zealand 148013, Australian Agricultural and Resource Economics Society.
    27. Dennis H. Robertson, 1936. "Some Notes on Mr. Keynes' General Theory of Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 51(1), pages 168-191.
    28. Shenggen Fan & Emily EunYoung Cho & Christopher Rue, 2018. "Returns to public agricultural and rural investments in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(2), pages 215-223, May.
    29. Shakeel Ahmad & Muhammad Tariq & Touseef Hussain & Qasir Abbas & Hamidullah Elham & Iqbal Haider & Xiangmei Li, 2020. "Does Chinese FDI, Climate Change, and CO 2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    30. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447, December.
    31. John Inekwe, 2015. "The Contribution of R&D Expenditure to Economic Growth in Developing Economies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(3), pages 727-745, December.
    32. Mogues, Tewodaj & Yu, Bingxin & Fan, Shenggen & McBride, Linden, 2012. "The impacts of public investment in and for agriculture: synthesis of the existing evidence," ESA Working Papers 288994, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    33. Nawaz AHMAD, 2011. "Impact of Institutional Credit on Agricultural Output: A Case Study of Pakistan," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(10(563)), pages 99-120, October.
    34. Hussain, Anwar Hussain, 2012. "Impact of Credit Disbursement, Area under Cultivation, Fertilizer Consumption and Water Availability on Rice Production in Pakistan (1988-2010)," MPRA Paper 41963, University Library of Munich, Germany.
    35. Dkhar, DS & Utpal, Kumar D., 2018. "Public expenditure on agriculture and economic growth: a case study of Meghalaya," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(2).
    36. Muhammad Imran Qureshi & Usama Awan & Zeeshan Arshad & Amran Md. Rasli & Khalid Zaman & Faisal Khan, 2016. "Dynamic linkages among energy consumption, air pollution, greenhouse gas emissions and agricultural production in Pakistan: sustainable agriculture key to policy success," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 367-381, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chandio, Abbas Ali & Jiang, Yuansheng & Ahmad, Fayyaz & Adhikari, Salina & Ain, Qurat Ul, 2021. "Assessing the impacts of climatic and technological factors on rice production: Empirical evidence from Nepal," Technology in Society, Elsevier, vol. 66(C).
    2. Abbas Ali Chandio & Yuansheng Jiang & Abdul Rauf & Fayyaz Ahmad & Waqas Amin & Khurram Shehzad, 2020. "Assessment of Formal Credit and Climate Change Impact on Agricultural Production in Pakistan: A Time Series ARDL Modeling Approach," Sustainability, MDPI, vol. 12(13), pages 1-21, June.
    3. Abbas Ali Chandio & Fayyaz Ahmad & Ghulam Raza Sargani & Asad Amin & Martinson Ankrah Twumasi, 2022. "Analyzing the effective role of formal credit and technological development for rice cultivation," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 683-711, June.
    4. Oyakhilomen, Oyinbo & Zibah, Rekwot Grace, 2014. "Agricultural Production and Economic Growth in Nigeria: Implication for Rural Poverty Alleviation," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(3), pages 1-17, August.
    5. Timmer, Peter & Weisbrod, Julian & McCulloch, Neil, 2006. "The Pathways out of Poverty in Rural Indonesia: an empirical assessment," Proceedings of the German Development Economics Conference, Berlin 2006 29, Verein für Socialpolitik, Research Committee Development Economics.
    6. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
    7. Megbowon Ebenezer* & Saul Ngarava & Nsikak-Abasi Etim & Oluwabunmi Popoola, 2019. "Impact of Government Expenditure on Agricultural Productivity in South Africa," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(12), pages 1734-1742, 12-2019.
    8. Getahun, Tigabu & Baumüller, Heike & Nigussie, Yalemzewd, 2018. "From agricultural to economic growth: Targeting investments across Africa," Discussion Papers 271153, University of Bonn, Center for Development Research (ZEF).
    9. Ampah Isaac Kwesi & Kotosz Balázs, 2016. "Wagner versus Keynes: the causal nexus between Government Expenditures and Economic Growth: An Empirical study of Burkina Faso," Journal of Heterodox Economics, Sciendo, vol. 3(2), pages 74-101, December.
    10. Abbas Ali Chandio & Yuansheng Jiang & Waqar Akram & Ilhan Ozturk & Abdul Rauf & Aamir Ali Mirani & Huaquan Zhang, 2023. "The impact of R&D investment on grain crops production in China: Analysing the role of agricultural credit and CO2 emissions," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4120-4138, October.
    11. Rabiu Maijama’a & Kabiru Saidu Musa, 2020. "Crude Oil Price, Urbanization and Environmental Pollution in Nigeria: Evidence from ARDL Approach," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(4), pages 227-240, December.
    12. Faisal Faisal & Ruqiya Pervaiz & Nesrin Ozatac & Turgut Tursoy, 2021. "Exploring the relationship between carbon dioxide emissions, urbanisation and financial deepening for Turkey using the symmetric and asymmetric causality approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17374-17402, December.
    13. Ansari, S. A. & Khan, W., 2018. "Relevance of Declining Agriculture in Economic Development of South Asian Countries: An Empirical Analysis," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(2).
    14. Nicholas Odhiambo, 2015. "Government Expenditure and Economic Growth in South Africa: an Empirical Investigation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(3), pages 393-406, September.
    15. Asuamah Yeboah, Samuel, 2018. "Do government activities determine electricity consumption in Ghana? An empirical investigation," MPRA Paper 89408, University Library of Munich, Germany.
    16. Antoniou Antonis & Katrakilidis Constantinos & Tsaliki Persefoni, 2013. "Wagner’s Law versus Keynesian Hypothesis: Evidence from pre-WWII Greece," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(4), pages 457-472, June.
    17. Pula Leke & Elshani Alban, 2018. "The Relationship Between Public Expenditure and Economic Growth in Kosovo: Findings from a Johansen Co-Integrated Test and a Granger Causality Test," Ekonomika (Economics), Sciendo, vol. 97(1), pages 47-62, January.
    18. Joseph Phiri & Karel Malec & Socrates Kraido Majune & Seth Nana Kwame Appiah-Kubi & Zdeňka Gebeltová & Mansoor Maitah & Kamil Maitah & Kamal Tasiu Abdullahi, 2020. "Agriculture as a Determinant of Zambian Economic Sustainability," Sustainability, MDPI, vol. 12(11), pages 1-14, June.
    19. Eyup Dogan & Nigar Taspinar & Korhan K Gokmenoglu, 2019. "Determinants of ecological footprint in MINT countries," Energy & Environment, , vol. 30(6), pages 1065-1086, September.
    20. Joseph Phiri & Karel Malec & Alpo Kapuka & Mansoor Maitah & Seth Nana Kwame Appiah-Kubi & Zdeňka Gebeltová & Mwila Bowa & Kamil Maitah, 2021. "Impact of Agriculture and Energy on CO 2 Emissions in Zambia," Energies, MDPI, vol. 14(24), pages 1-13, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3613-:d:774749. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.