Climate Changes and its Impact on the Agriculture Sector in Selected South Asian Countries

Abstract

This study depicts an inclusive estimation of climate variation and its effects on agriculture sector in theselected South Asian countries (India, Bangladesh, Pakistan, Nepal, Bhutan and Sri-Lanka) over the period of 1990-2014. Agriculture sector plays vigorous role in the economy of selected South Asian states because more than 60%people work in this sector. The rapid growth of industrialization and weather variation causes the raise of thetemperature level by which reduce production of agriculture crops and the people face heavy losses. Therefore, mainobjective of this study is to detect the influence of the global weather variation in agriculture sector of selected SouthAsian countries. Agriculture sector is used as dependent variable. CO2 emission, gross capital formation, labor forceand temperature are used as explanatory variables. Auto regressive distributed lag model is employed to examine theinfluence of climate variation on the agricultural sector. For analysis panel data were collected from selected SouthAsian countries. The existence of the short and long term relationship between dependent and independent variables isalso assessed by this model. Thus, findings show the climate variation has significant effect on the agricultural sector.In a policy recommendation, government should use sector-wise policies and friendly environmental policies whichminimize the negative effect of climate change.