Asymmetric impacts of ICT and energy intensity on agricultural productivity: Evidence from Asia‐Pacific region

• Published date: 01 August 2023
• Author: Arindam Paul,Dukhabandhu Sahoo,Amrita Jena
• Date: 01 August 2023
• DOI: http://doi.org/10.1111/rode.12993

REGULAR ARTICLE

Asymmetric impacts of ICT and energy

intensity on agricultural productivity: Evidence

from Asia-Pacific region

Arindam Paul

1

| Dukhabandhu Sahoo

1

| Amrita Jena

2

1

School of Humanities, Social Sciences,

and Management, Indian Institute of

Technology Bhubaneswar, Odisha, India

2

School of Economics, University of

Hyderabad, Hyderabad, Telangana, India

Correspondence

Dukhabandhu Sahoo, School of

Humanities, Social Sciences, and

Management, Indian Institute of

Technology Bhubaneswar, Bhubaneswar,

Odisha, India.

Email: dsahoo@iitbbs.ac.in

Abstract

In the contemporary times of rising food insecurity and

malnutrition, the agricultural sector needs more atten-

tion. This study aims to investigate the asymmetric

impacts of information and communication technologies

(ICTs), energy intensity, urbanization, and inequality on

agricultural productivity for 20 Asia-Pacific countries

from 1990 to 2020. To investigate asymmetric impacts,

the study employs the panel nonlinear autoregressive dis-

tributed lag (NARDL) model. The estimated results rev-

ealed that positive and negative shocks in ICT, energy

intensity, and urbanization have asymmetric impacts on

agricultural productivity in the long run, whereas sym-

metry is observed in short-run impacts. It is found that a

1% increase (decrease) in ICT and urbanization increases

(decreases) agricultural productivity by 0.292% (0.662%)

and 2.717% (2.759%), respectively, whereas a 1% increase

(decrease) in energy intensity decreases (increases) agri-

cultural productivity by 0.252% (0.216%) in the long run.

Furthermore, the results of the Dumitrescu-Hurlin panel

causality test point out the existence of bi-directional cau-

sality between agricultural productivity and the indepen-

dent variables (ICT, energy intensity, urbanization, and

inequality). Based on the findings, the study suggests that

the Asia-Pacific countries should increase the application

of ICT and use energy more efficiently in agriculture to

boost agricultural productivity.

Received: 30 June 2022 Revised: 24 March 2023 Accepted: 27 March 2023

DOI: 10.1111/rode.12993

Rev Dev Econ. 2023;27:1537–1561. wileyonlinelibrary.com/journal/rode © 2023 John Wiley & Sons Ltd. 1537

KEYWORDS

agriculture, energy intensity, information and communication

technology, panel NARDL, urbanization

JEL CLASSIFICATION

Q19, O30, D63, O18, Q41, C23

1|INTRODUCTION

Although agriculture and its allied sectors contribute to world GDP by only 4%, 27% of people

(of total employment) were employed in these sectors in 2019 (World Development Indicator

[WDI], 2022a). The contribution of the agriculture sector cannot be underestimated. It meets

food requirements, supplies essential raw materials to the industrial sector, and provides a mar-

ket for industrial products (Ahmad & Heng, 2012). Accordingly, the growth of the industrial

sector heavily depends on the agriculture sector. Further, the growth of the agriculture sector

helps reduce poverty by increasing the income of farmers and rural people (Ahmad &

Heng, 2012). The annual growth in agriculture and its allied sectors was less than 4% in 2021

(WDI, 2022a), which is not sufficient to meet the growing demand for safe, nutritious, and

affordable food of the rising population, that is, the second goal of the sustainable development

goal. In addition, the outbreak of COVID-19 has amplified the need for safe, nutritious, and

affordable food (Siddiq, 2020). Hence, it is required to provide more attention to the agriculture

sector.

The Asia-Pacific region, which includes the world's most populated countries—China and

India—accounts for 60% of the world population (United Nations Population Fund, 2022). To

provide staple food to this enormous number of people, a well-developed agriculture sector is

required in the Asia-Pacific region. According to Organization for Economic Co-operation and

Development (OECD) and Food and Agriculture Organization (FAO) (2021), the Asia-Pacific

region is the largest producer of agriculture and fish commodities. It contributes to the global

output of rice, wheat, and maize by 90%, 40%, and 30%, respectively (OECD & FAO, 2021).

It produces 58% of global vegetable oil (mostly obtained from palm oil output in Malaysia

and Indonesia) and nearly 70% of global fish output (OECD & FAO, 2021). It is expected

that by the year 2030, it will account for 53% of the global agriculture and fish output (OECD &

FAO, 2021).

Though the Asia-Pacific region progressed well in providing food security and nutrition for

two decades, the situation has deteriorated since 2019 and has been aggravated due to COVID-

19. According to FAO and United Nations International Children's Emergency Fund (UNICEF)

(2021), 54 million more people faced hunger in 2020 compared to 2019, and more than 1.1 bil-

lion people did not get adequate food in 2020 in the Asia-Pacific region. It is recorded that

undernourishment increased from 7.5% in 2019 to 8.7% in 2020 (FAO & UNICEF, 2021). The

pandemic pushed 75–80 million people below the extreme poverty line ($1.90 a day) in develop-

ing Asia (Asian Development Bank [ADB], 2021a). The agriculture sector has the potential to

revive the economy from this dismal situation. On this ground, it becomes essential to identify

the determinants of agricultural productivity in the Asia-Pacific region.

In 2021, the acting chief economist of ADB, Joseph Zveglich, Jr., stated, “Agriculture has

supported Asia and the Pacific's rapid economic growth in recent decades, but multiple

1538 PAUL ET AL.