IDEAS home Printed from https://ideas.repec.org/a/kap/ecopln/v58y2025i3d10.1007_s10644-025-09886-z.html
   My bibliography  Save this article

Financial inclusion and renewable energy in the face of extreme weather conditions: a CS-ARDL analysis of agricultural production in ASEAN-5

Author

Listed:
  • Shahzad Ali

    (Superior University Lahore)

  • Tahreem Ejaz

    (Superior University Lahore)

  • Ali Sajjad

    (The Superior University, Lahore)

  • Rimsha Fiaz

    (The Superior University, Lahore)

Abstract

Extreme weather conditions have gained popularity among researchers; thus, this study got the opportunity to examine the nexuses between extreme weather conditions, financial inclusion, and agricultural productivity in ASEAN-5 countries (Malaysia, Philippines, Thailand, Pakistan, and Indonesia) using panel data from 1972 to 2023. In this regard, cross-sectional dependence, cross-sectional dependence, cross-sectional augmented Im, Pesaran, and Shin, and cross-sectional augmented dickey–fuller unit root tests and the CS-ARDL approach are considered the most effective methods for assessing the data and testing the hypothesis. According to the result, human capital, financial inclusion, and ICT are significantly promoted, and weather conditions are inverse to agricultural productivity. Consequently, the study suggests that the ASEAN-5 nations should implement adaptable, effective, and efficient financial policies and use advanced technology related to finance and weather forecasting to improve agricultural productivity.

Suggested Citation

  • Shahzad Ali & Tahreem Ejaz & Ali Sajjad & Rimsha Fiaz, 2025. "Financial inclusion and renewable energy in the face of extreme weather conditions: a CS-ARDL analysis of agricultural production in ASEAN-5," Economic Change and Restructuring, Springer, vol. 58(3), pages 1-23, June.
  • Handle: RePEc:kap:ecopln:v:58:y:2025:i:3:d:10.1007_s10644-025-09886-z
    DOI: 10.1007/s10644-025-09886-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10644-025-09886-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10644-025-09886-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Asongu, Simplice & Uduji, Joseph & Okolo-Obasi, Elda, 2019. "Thresholds of External Flows for Inclusive Human Development in Sub-Saharan Africa," MPRA Paper 101521, University Library of Munich, Germany.
    2. Greenwood, Jeremy & Jovanovic, Boyan, 1990. "Financial Development, Growth, and the Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1076-1107, October.
    3. Steven Passel & Emanuele Massetti & Robert Mendelsohn, 2017. "A Ricardian Analysis of the Impact of Climate Change on European Agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 725-760, August.
    4. Abbas Ali Chandio & Yuansheng Jiang & Feng Wei & Abdul Rehman & Dan Liu, 2017. "Famers’ access to credit: Does collateral matter or cash flow matter?—Evidence from Sindh, Pakistan," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1369383-136, January.
    5. Simplice A. Asongu & Ivo J. Leke, 2019. "External flows and inclusive human development in Sub-Saharan Africa," International Journal of Happiness and Development, Inderscience Enterprises Ltd, vol. 5(1), pages 33-56.
    6. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
    7. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    8. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    9. Robert F. Owen, 2013. "Governance and Economic Integration : Stakes for Asia," Development Economics Working Papers 23432, East Asian Bureau of Economic Research.
    10. Julian M. Alston & Philip G. Pardey, 2014. "Agriculture in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 121-146, Winter.
    11. Nomman Ahmed, Mirza & Maas, Sarah & Schmitz, P. Michael, 2010. "Analysing agricultural productivity growth in a framework of institutional quality," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52695, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    12. Mintert, James R. & Widmar, David & Langemeier, Michael & Boehlje, Michael & Erickson, Bruce, 2016. "The Challenges of Precision Agriculture: Is Big Data the Answer?," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230057, Southern Agricultural Economics Association.
    13. Demetriades, Panicos O. & Hussein, Khaled A., 1996. "Does financial development cause economic growth? Time-series evidence from 16 countries," Journal of Development Economics, Elsevier, vol. 51(2), pages 387-411, December.
    14. Solène Collot & Tobias Hemauer, 2021. "A literature review of new methods in empirical asset pricing: omitted-variable and errors-in-variable bias," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 35(1), pages 77-100, March.
    15. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    16. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    17. Muhammad Zakaria & Wen Jun & Marium Farrukh Khan, 2019. "Impact of financial development on agricultural productivity in South Asia," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(5), pages 232-239.
    18. M. Hashem Pesaran, 2015. "Testing Weak Cross-Sectional Dependence in Large Panels," Econometric Reviews, Taylor & Francis Journals, vol. 34(6-10), pages 1089-1117, December.
    19. Julius Kotir, 2011. "Climate change and variability in Sub-Saharan Africa: a review of current and future trends and impacts on agriculture and food security," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 13(3), pages 587-605, June.
    20. Md. Mominur Rahman & Alexey Mikhaylov & Ishaq Bhatti, 2024. "The impact of investment in human capital on investment efficiency: a PLS-SEM approach in the context of Bangladesh," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(5), pages 4959-4986, October.
    21. Elahi, Ehsan & Abid, Muhammad & Zhang, Liqin & ul Haq, Shams & Sahito, Jam Ghulam Murtaza, 2018. "Agricultural advisory and financial services; farm level access, outreach and impact in a mixed cropping district of Punjab, Pakistan," Land Use Policy, Elsevier, vol. 71(C), pages 249-260.
    22. Chudik, Alexander & Pesaran, M. Hashem, 2015. "Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors," Journal of Econometrics, Elsevier, vol. 188(2), pages 393-420.
    23. Fisman, Raymond & Svensson, Jakob, 2007. "Are corruption and taxation really harmful to growth? Firm level evidence," Journal of Development Economics, Elsevier, vol. 83(1), pages 63-75, May.
    24. Nicholas Rada & William Liefert & Olga Liefert, 2020. "Evaluating Agricultural Productivity and Policy in Russia," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(1), pages 96-117, February.
    25. 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.
    26. Evenson, Robert E., 1988. "Human Capital and Agricultural Productivity Change," 1988 Conference, August 24-31, 1988, Buenos Aires, Argentina 183065, International Association of Agricultural Economists.
    27. Agus Dwi Nugroho & Priya Rani Bhagat & Robert Magda & Zoltan Lakner, 2021. "The impacts of economic globalization on agricultural value added in developing countries," PLOS ONE, Public Library of Science, vol. 16(11), pages 1-23, November.
    28. Michele A. Mutchek & Eric D. Williams, 2010. "Design Space Characterization for Meeting Cost and Carbon Reduction Goals: Smart Irrigation Controllers in the Southwestern United States," Journal of Industrial Ecology, Yale University, vol. 14(5), pages 727-739, October.
    29. Jianxu Liu & Mengjiao Wang & Li Yang & Sanzidur Rahman & Songsak Sriboonchitta, 2020. "Agricultural Productivity Growth and Its Determinants in South and Southeast Asian Countries," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    30. Louis Verchot & Meine Noordwijk & Serigne Kandji & Tom Tomich & Chin Ong & Alain Albrecht & Jens Mackensen & Cynthia Bantilan & K. Anupama & Cheryl Palm, 2007. "Climate change: linking adaptation and mitigation through agroforestry," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 12(5), pages 901-918, June.
    31. Lio, Monchi & Liu, Meng-Chun, 2008. "Governance and agricultural productivity: A cross-national analysis," Food Policy, Elsevier, vol. 33(6), pages 504-512, December.
    32. Anthony Orji & Jonathan E. Ogbuabor & Onyinye I. Anthony-Orji, 2015. "Financial Liberalization and Economic Growth in Nigeria: An Empirical Evidence," International Journal of Economics and Financial Issues, Econjournals, vol. 5(3), pages 663-672.
    33. Jeetendra Prakash Aryal & Tek B. Sapkota & Ritika Khurana & Arun Khatri-Chhetri & Dil Bahadur Rahut & M. L. Jat, 2020. "Climate change and agriculture in South Asia: adaptation options in smallholder production systems," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5045-5075, August.
    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. Laurent Cavenaile & Christian Gengenbach & Franz Palm, 2014. "Stock Markets, Banks and Long Run Economic Growth: A Panel Cointegration-Based Analysis," De Economist, Springer, vol. 162(1), pages 19-40, March.
    2. Rajesh Sharma & Samaresh Bardhan, 2017. "Finance growth nexus across Indian states: evidences from panel cointegration and causality tests," Economic Change and Restructuring, Springer, vol. 50(1), pages 1-20, February.
    3. Ijaz Uddin & Muhammad Azam Khan, 2024. "Global Evidence on the Impact of Globalization, Governance, and Financial Development on Economic Growth," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14546-14577, September.
    4. Trofimov, Ivan D., 2020. "Is There a J-Curve Effect in the Services Trade in Canada? A Panel Data Analysis," MPRA Paper 106704, University Library of Munich, Germany.
    5. Jian Xue & Zeeshan Rasool & Raima Nazar & Ahmad Imran Khan & Shaukat Hussain Bhatti & Sajid Ali, 2021. "Revisiting Natural Resources—Globalization-Environmental Quality Nexus: Fresh Insights from South Asian Countries," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    6. Wei, Hua & Rizvi, Syed Kumail Abbas & Ahmad, Ferhana & Zhang, Yuchen, 2020. "Resource cursed or resource blessed? The role of investment and energy prices in G7 countries," Resources Policy, Elsevier, vol. 67(C).
    7. Yang, Shuangpeng & umar, Muhammad, 2022. "How globalization is reshaping the environmental quality in G7 economies in the presence of renewable energy initiatives?," Renewable Energy, Elsevier, vol. 193(C), pages 128-135.
    8. Rafaty, R. & Dolphin, G. & Pretis, F., 2020. "Carbon pricing and the elasticity of CO2 emissions," Cambridge Working Papers in Economics 20116, Faculty of Economics, University of Cambridge.
    9. Munir Ahmad & Heng Li & Muhammad Khalid Anser & Abdul Rehman & Zeeshan Fareed & Qingyou Yan & Gul Jabeen, 2021. "Are the intensity of energy use, land agglomeration, CO2 emissions, and economic progress dynamically interlinked across development levels?," Energy & Environment, , vol. 32(4), pages 690-721, June.
    10. Mariam Camarero & Sergi Moliner & Cecilio Tamarit, 2025. "Which are the long-run determinants of US outward FDI? Evidence using large long-memory panels," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 34(2), pages 259-290, February.
    11. Amat Adarov, 2023. "Financial cycles in Europe: dynamics, synchronicity and implications for business cycles and macroeconomic imbalances," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(2), pages 551-583, May.
    12. R. Golinelli & I. Mammi & A. Musolesi, 2018. "Parameter heterogeneity, persistence and cross-sectional dependence: new insights on fiscal policy reaction functions for the Euro area," Working Papers wp1120, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. Joseph David, 2024. "The role of corruption in the oil price–growth relationship: Insights from oil-rich economies," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-32, December.
    14. Guerello, Chiara & Tronzano, Marco, 2020. "“Global factors, international spillovers, and the term structure of interest rates: New evidence for Asian Countries”," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    15. Trofimov, Ivan D., 2020. "Public capital and productive economy profits: evidence from OECD economies," MPRA Paper 106848, University Library of Munich, Germany.
    16. Chakraborty, Saptorshee Kanto & Mazzanti, Massimiliano, 2020. "Energy intensity and green energy innovation: Checking heterogeneous country effects in the OECD," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 328-343.
    17. Dimitrios Asteriou & Keith Pilbeam & Cecilia Eny Pratiwi, 2021. "Public debt and economic growth: panel data evidence for Asian countries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 45(2), pages 270-287, April.
    18. Eibinger, Tobias & Deixelberger, Beate & Manner, Hans, 2024. "Panel data in environmental economics: Econometric issues and applications to IPAT models," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    19. Arshian Sharif & Usman Mehmood & Salman Tariq & Zia Ul Haq, 2024. "The role of financial inclusion and globalization toward a sustainable economy in ASEAN countries: evidence from advance panel estimations," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(4), pages 10243-10260, April.
    20. Uche, Emmanuel & Ngepah, Nicholas & Das, Narasingha & Dey, Labani, 2024. "Dynamic interactions of green innovations, green transitions and ecological load capacity factor in BRICS," Renewable Energy, Elsevier, vol. 231(C).

    More about this item

    Keywords

    Agriculture productivity; Extreme weather conditions; Renewable energy; Financial inclusion; ICT;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

    Statistics

    Access and download statistics

    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:kap:ecopln:v:58:y:2025:i:3:d:10.1007_s10644-025-09886-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.