The impact of climate change, fertilizer consumption, and agricultural employment on crop production: A panel regression analysis of the Philippines, Thailand, and Malaysia

Abstract

Agriculture is an integral part of the Philippine, Thai, and Malaysian economy. However, in recent years, there has been a rise in temperatures, droughts, and extreme weather events, all of which have significantly impacted crop productivity. The changes in climate patterns have led to prolonged dry spells, altered precipitation patterns, and an increased frequency of storms and floods, disrupting planting and harvesting cycles. The instability in crop production not only threatens food security but also contributes to rising food inflation, as the reduced supply of agricultural commodities drives up prices. This study examined the impact of climate change, fertilizer consumption, and agricultural employment on crop production in the Philippines, Thailand, and Malaysia. The study used panel data from the World Bank from 1997 to 2022. Using Random Effects Generalized Least Squares (GLS), the study has found that rising temperatures significantly reduce crop production in the Philippines, Thailand, and Malaysia, while annual precipitation and fertilizer consumption turned out to be insignificant determinants. Meanwhile, agricultural employment yielded a significant positive relationship with crop production. The findings from this study highlight the importance of enhancing agricultural resilience and sustainability in the face of changing climatic conditions.