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Int. J. Agron. Agri. R.
Ahmad et al. Page 8
RESEARCH PAPER OPEN ACCESS
Wheat crop responds to climate change in rainfed areas of
District Mansehra, Khyber-Pakhtunkhwa- An Econometric
analysis
Rizwan Ahmad1
, Muhammad Zulfiqar*1
, Himatullah Khan1
, Jawad Ali2
, Arjumand
Nizami2
, Dilawar Khan3
1
The University of Agriculture, Peshawar, Pakistan
2
Helvetas Swiss Intercooperation, Pakistan
3
University of Science and Technology, Kohat, Pakistan
Article published on February 28, 2021
Key words: Climate change, Rainfed, Wheat, Productivity, Mansehra
Abstract
Agriculture in many ways is affected by climate change and has impact for productivity of crops particularly in
rainfed areas. Climate change related research remained a poorly investigated area in KP and instant study filled
that gap by investigating impacts of change in climate on farm productivity. The secondary data, spread over 30
years from 1984 to 2013 pertaining to temperature, precipitation, area under cultivation and yield of crops was
collected. Analytical models used are ARDL Model. The results pertaining to impact of temperature and
precipitation on wheat yield suggest long run relationship among the variables. Temperature is positively and
significantly related in Mansehra. The precipitation is positively and significantly related. Short run relationship
implies that around 100% deviations from long-term equilibrium are adjusted every year in case of Mansehra.
The results wheat areas suggest long run relationship among the variables based on F Statistics value. Both
temperature and precipitation are positively and significantly related to the area under wheat in the long run in
case of Mansehra. Based on objectives of the research study and field findings recommendations offered include;
farmers awareness drive, policies to promote adaptation measures, enhancing farmers’ adaptive capacity to
strengthen local resilience, participation of farming community in formulation of policies, making meteorological
information available to farmers, Design research plans to evolve crops varieties addressing changing climatic
challenges, construct water harvesting structures for high efficiency irrigation and further research to estimate
range of temperature and precipitation within which crops under study perform better.
* Corresponding Author: Muhammad Zulfiqar  Zulfiqar@aup.edu.pk
International Journal of Agronomy and Agricultural Research (IJAAR)
ISSN: 2223-7054 (Print) 2225-3610 (Online)
http://www.innspub.net
Vol. 18, No. 2, p. 8-16, 2021
Int. J. Agron. Agri. R.
Ahmad et al. Page 9
Introduction
Agriculture in many ways is affected by climate
change and has impact for productivity of crops
(Ziervogel 2009; Falco 2011 and Chandrasiri 2013).
The negative effects of climate change are considered
too high such as recurrent droughts, flooding, heat
waves, cold waves and land deterioration (Adger
2003 and Rosenweig and Hillel 1998). In rainfed
areas, climate is key to crop productivity, thus
droughts, floods or extreme temperatures could
devastate agriculture sector. This devastating
situation could result into poor and unsustainable
livelihood of the communities depending on
agriculture in the rainfed areas (Calzadilla 2009 and
Ahmad and Zulfiqar 2019). According to Climate
Change Synthesis Report (2014), the limit of global
surface temperature increases to 1.5 degrees Celsius
and continues to rise beyond 2100 in all scenarios
except lower emissions scenario. To come out with
evidence about adverse effects of climatic changes on
agriculture including ecosystem services became a
critical challenge for development practitioners
around the globe. It is internationally recognized that
decreased productivity of agriculture sector means
GDP level loss, decrease in income and consumption
for the most vulnerable population and deterioration
in households’ welfare. Thus influence of climate
changes continuously poses major threat to rural
livelihoods (Kangalawe and Lyimo 2013).
Climatic variations and resultant weather patterns
have already marked as negative effects on
agricultural resources, food production and food
security globally (Diao, 2010). Climate change may
alter rainfall patterns, drought cycles and more
frequent severe weather patterns and increased
diseases and agricultural pests (Yanda P.Z. 2010 and
Hewitson B.C. 2010). Moreover, consequent to
climatic changes, productivity of farms decreased in
general (Makungwa, 2010 and Parry 1999).
Being an agricultural based economy, Pakistan is
under immediate risk because of global climatic
variability. The country ranked 12th amongst the
most vulnerable states expected to have brunt of the
climatic changes (Global climate risk index 2015).
The climatic changes have led to increased
vulnerabilities to agriculture, forestry and water
resources upon which a large part of the economy and
livelihood depend. Pakistan being a developing country
is likely to face severe challenges on account of
economic and social development, environmental
sustainability and land degradation. The adverse
outcome of climatic changes are already been felt in
Pakistan because of recurring droughts, increased
intensity of floods and un predictable weather patterns
and changes in behavior of agricultural production
system. Within the country, regions with arid land will
be on the top of affected list. Such arid regions will face
a whole brunt of adverse impacts in terms of their
socio-economic conditions, physical, environmental as
well as biological resources (Khan 2012).
Agriculture is an important source of livelihood for
the rural communities of rainfed areas. The majority
of the 35.50 million masses living in Khyber
Pakhtunkhwa are relying on rain-fed agriculture
system. The food availability for such areas is
dependent on agricultural productivity. The crop
productivity/yield is dependent on timely rainfall
specially in rainfed areas. District Mansehra selected
for instant research study is one of the 34 districts of
Khyber Pakhtunkhwa with almost 80% rainfed area
out of its total 80,747 ha of cultivated area (GoKP
2017). In view of the fact that a change in climatic
patterns has been occurring and will continue even in
future, underlines the importance of understanding
as how farmers perceive these changes and how they
adapt to these variations. The perceptions of climate
change play a vital role in farmers’ decisions of
adopting protective measures against climate
extremes and therefore, are important factors which
need to be considered. Minimize the negative impacts
of change in climate needs awareness of the farmers
and policy makers. Therefore, through instant study,
the impact of climate change in terms of precipitation
and temperature on area and yield of wheat crop is
investigated using time series data. The outcome and
recommendation of the research study will have
important implications for future policies addressing
climate change within the country and farmers
behavior towards crop husbandry.
Int. J. Agron. Agri. R.
Ahmad et al. Page 10
trict Mansehra is located in the North Eastern part of
Khyber Pakhtunkhwa with 4,579 sq km of area. The
district is mainly mountainous, with an altitude
ranging from 200 meters in the south upto more than
4,500 meters in the north. The well-known Babosar
pass is located on the northeastern border of the
district. The winter climate is cold and the summer
climate is pleasant. In the Kaghan Valley which is
situated in the northern, the conditions in summer
are cool whereas in the season of winter extremely
cold and during this period there is snow fall of heavy
magnitude. Summer and winter are dominant
seasons of the district. The summer season spread
over April to September, while that of winter from
October to March.
There are two farming seasons. The one is summer
locally called as Kharif season and it starts from May
and ends in September. Seasonal vegetables, rice and
maize are the main crops of this season. The other is
winter season locally called as Rabi season. The
winter growing season starts from October and ends
in March. Important winter season crops are wheat,
seasonal vegetables and peas.
Material and methods
Selection of Study Area
The study has been planned and carried out in district
Mansehra of Khyber Pakhtunkhwa. The selection is
based on rainfed nature of the district. The cultivated
area of district Mansehra is 80,747 hectares out of
which 77% is rainfed (GoKP 2015-16). Mansehra is
situated at 34.33° North latitude, 73.2° East longitude
and 1067 meters (https://www.maps-
streetview.com/Pakistan/) dated 2.11.2017. Monthly
average annual minimum temperature in Mansehra
ranges from 2.6 to 21.3 oC, while monthly average
annual maximum temperature in Mansehra ranges
from 13.4 to 34.8 oC. Average annual precipitation in
Mansehra ranges from 34-302 mm (https://en.
climate- data.org/location/1299/).
Selection of Crop
The crop selected for the study is wheat. The crop
selected is grown on vast areas of the rainfed district and
have direct impact on the livelihoods of the people.
The total cultivated area of district Mansehra is 80,747
hectares. The area brought under cultivation during
winter season is 40,029 hectares out of which 37,374
hectares is under wheat i.e. 93.37%.
Data Collection
The secondary data, time series data, spread over 30
years from 1984 to 2013 was collected. The time
series data included temperature, precipitation, area
under cultivation and yield of wheat. The data related
to temperature and precipitation was collected from
Meteorological Department, Government of Pakistan,
while data pertaining to area and yield was collected
from the Crop Reporting Wing of the Agriculture
Department, Government of Khyber Pakhtunkhwa.
Analytical Modeling
A 30 years meteorological data pertaining to
precipitation and temperature was analyzed against
area and productivity. The data was then subjected to
an analysis using Auto Regressive Distributed Lag
(ARDL), Co-Integration Technique (Engle 1987) and
Bound Test of Co Integration (Pesaran and Shin 1999
and Pesaran et al. 2001 and Johnsen and Juselius
1990). The Autoregressive Distributed Lag (ARDL)
model also called bound testing cointegration model
was advanced by M.H. Pesaran and Y. Shin (1999).
The rationale behind use of ARDL model is that the
combination of time series variables in the study is
stationary at level and integration at order 1. Thus in
such a situation ARDL approach is most suitable
econometric tool compared to some of the other
econometric models. Additionally, it was also aimed
to determine impact of diverse independent variables
on the dependent variable both, for the short-run and
for the long-run for which ARDL model is best suited.
The ARDL produces the short run and long run
coefficient concurrently along with followings OLS
process for cointegration amid the involved variables.
Another advantage of ARDL is that it offers flexibility
about order of the integration pertaining to variables
used. Further, it possesses the suitability regardless of
the fact as whether the variables included are purely
I(1), purely I(0) or whether mutually cointegrated but
the same is not true if there is any variable having 2nd
order difference.
Int. J. Agron. Agri. R.
Ahmad et al. Page 11
The common formula of ARDL model with n lags for
variable Y and m lag for variable X stands as given
below:
𝑌𝑡 = 𝛼0 + ∑ 𝛼𝑖𝑌𝑡 − 1 + ∑ 𝛽𝑖𝑋𝑡 − 𝑖
𝑚
𝑖=0
𝑛
𝑖=1 + 𝑈𝑡………..1
While general format of the ARDL ECM runs as below:
𝛥𝑌𝑡 = 𝛼0 + ∑ 𝛽𝑗𝑌𝑡 − 𝑖 + ∑ 𝛽𝑗𝑋𝑡 − 𝑗 + 𝜓𝐸𝐶𝑀𝑡 − 1
+ ɛ𝑡 … … … … .2
Therefore given equation reveals the speed with
which adjustment of parameter is taking place. It is
also pertinent to note that for Error Correction (EC)
Model to be significant; its value must be in negative
form. The EC term states that any of the divergence
occurring in long-run equilibrium amongst the
variables is to be corrected in each period as well as
the time period that is to be taken to come yet again
to the long-run equilibrium point. ECMt-1 shows the
residuals which are attained out of estimated co-
integration mode.
A regression analysis showed attribution of climatic
changes to crop area and productivity. The
productivity regression model used is as under:
P = β0 + β1R+β2T+ e
Where
P = productivity per hectare
R = rain/precipitation
T = temperature
βs = coefficients
e = error term
The area under cultivation regression model has been
as under;
A = β0 + β1R+β2T+ e
Where
A = Area in hectare
R = rain/precipitation
T = temperature
βs = coefficients
e = error term
Diagnostic Tools Used
The diagnostic tools used to satisfy various
assumptions and to ensure that the results of the
analytical model are without any bias included; ADF
Unit Root Test to decide on analytical model
(Kwiatkowski, Phillips, Schmidt and Shinn 1992;
Maddala and Kim 1998; and Phillips and Xiao 1998);
Autocorrelation Test - Brush Godfrey LM Test
(Breusch, T. S. 1978 and Godfrey, L. G. 1978);
Heteroscedasticity Test - Breusch-Pagan-Godfrey
Test (Breusch, T.S. and A.R. Pagan, 1979) and
Stability check Test - CUSUM Test & CUSUMSQ Test
(Brown, R.L., J. Durbin and J.M. Evans 1975).
Results and discussions
Wheat Productivity
Before econometric analysis using ARDL Model,
certain assumptions were necessary to be satisfied.
Therefore, a number of tests were conducted which
are detailed below along with their results.
ADF Unit Root
For the econometric analysis of time series data, it is
necessary that the data should be stationery.
Therefore, the data was transformed to logarithm and
then in order to determine stationarity of the data,
ADF test was used. The test checked integration
order. The test included extra lagged length of
variable (dependent) in order to remove the problem
of autocorrelation in the model. Justification of using
ARDL model is based on ADF test for the stationarity
of the data. The results of the ADF unit root test are
given in table 1.
Table 1. Results of the ADF Unit Root Test.
Variable
ADF Unit Root Test
Order
T-Statistics Prob. Values
Logarithm of Wheat
yield
-6.722 0.0000 I(1)
Logarithm Mean
Temperature
-4.339 0.002 I(0)
Logarithm
Mean precipitation
-5.824 0.0000 I(0)
The results in table 1 shows that data of variable
‘wheat yield’ is stationary at first difference while data
of variables ‘temperature’ and ‘precipitation’ is
stationary at level. The value of t-statistics is -6.772
and Probability value is 0.0000. Thus p value is less
than 5% which means at 5% mean variable is
stationary at level.
Int. J. Agron. Agri. R.
Ahmad et al. Page 12
Similarly t-statistics and p-values of temperature and
precipitation reflect that both variables are stationary
at level. The data stationarity was determined using
same test by a number of researchers (Peter et al.,
1988).
Autocorrelation
In order to know the existence of autocorrelation
problem or otherwise, Brush God fray LM test was
applied. The results of the test are presented in table 2.
Table 2. Results of Brush God fray LM Test.
F-statistic 0.920149 Prob. F(2,11) 0.4271
Obs*R-squared 3.869696
Prob. Chi-
Square(2)
0.1444
Table 2 shows that the p-values associated with test
statistic is greater than the standard significant level
[i.e. 0.144> 0.05]. Thus, Brush’s LM test results
reveal that the data is free of autocorrelation problem
i.e. there is no autocorrelation. The same test to check
autocorrelation was used Pervez et al., 2010.
Heteroscedasticity
The presence of Heteroscedasticity in the data could
result in biased results. Therefore, it was important to
check its presence or otherwise. For this purpose,
Breusch-Pagan-Godfrey test was used. The results of
the Breusch-Pagan-Godfrey (BPG) test are presented
in the table 3.
Table 3. Results of BPG test.
F-statistic 0.994834 Prob. F(13,13) 0.5037
Obs*R-squared 13.46504
Prob. Chi-
Square(13)
0.4126
Scaled explained
SS
2.741691
Prob. Chi-
Square(13)
0.9987
The diagnostic test for Heteroscedasticity using
Breusch-Pagan-Godfrey test given in the table 3
shows at 5%, p-value associated with the test statistics
is greater than the standard significance level [i.e.
0.4126> 0.05]. The results reveal that the data is
homoscedastic and there is no problem of
Heteroscedasticity.
Stability Check
For analyzing the stability of the long-run coefficients
together with the short-run dynamics, the cumulative
sum (CUSUM) and the cumulative sum of squares
(CUSUM) test were applied. As shown in fig.s 1 and 2,
both the CUSUM and the CUSUMQ plot residual are
found inside the boundaries. That is to say that the
stability of the parameters has remained within its
critical bounds of parameter stability at 5%.
-12
-8
-4
0
4
8
12
19 20 21 22 23 24 25 26 27 28 29 30 31
CUSUM 5% Significance
Fig. 1. CUSUM Result.
-0.4
0.0
0.4
0.8
1.2
1.6
19 20 21 22 23 24 25 26 27 28 29 30 31
CUSUM of Squares 5% Significance
Fig. 2. CUSUM of Square Result.
Both the figures clarify that the CUSUM as well as the
CUSUMQ tests confirm the stability of the long-run
coefficients along with the short-run dynamics. These
tests are in line with the many other researchers work
such as Sahbi F. (2012) and Stephen E. M. (1982).
Analytical model-ARDL Bounds Test Results
After satisfying all the necessary assumptions, the
relationship between wheat yield as a dependent
variable and temperature and precipitation as
independent variables was estimated using ARDL
(bounds) test. The result of the test as depicted in table
4 shows long run relationship amongst the variables.
Int. J. Agron. Agri. R.
Ahmad et al. Page 13
Table 4. ARDL Bound Test Results.
Test Statistic Value K
F-statistic 8.460 2
Critical Value Bounds
Significance I0 Bound I1 Bound
10.0% 3.17 4.14
05.0% 3.79 4.85
02.5% 4.41 5.52
01.0% 5.15 6.36
The value of F Statistics in table 4 is 8.46 which is
higher than upper boundary that shows long run
relationship among the variables. Akike Info Criterion
(AIC) is used to select the optimal lag length of
variables included in the ARDL model. Table 6
presents the results of long-run relationship of the
selected ARDL model (3,4,4) using SBC. The long run
estimation results reflected in table 6 shows that both
temperature and precipitation are positively and
significantly related to the wheat yield in the long run.
Table 5. Long Run Estimation Results of ARDL
(3,4,4) Model.
Variables Coefficients Std. Error t-Statistic Prob.
Lwheat_temp 3.714 0.782195 4.748261 0.0004
Lwheat_precip 1.583 0.586459 2.698739 0.0182
C -6.39 2.913093 -2.194763 0.0469
Lwheat_yield=-
6.39+3.714lwheat_temperature+1.583lwheat_precipitation
The scenario reveals that temperature and
precipitation are positively and significantly related to
wheat yield in the long run. The equation reflects that if
1% change occur in precipitation wheat yield will
increase by 1.583% and if temperature increases by 1%
the wheat yield will increase by 3.714% in the long run.
Short Run Estimation
The table 6 indicates the short run relationship between
wheat yield and temperature and precipitation.
Table 6. Short Run Estimation Results of
Cointegration Form of ARDL (3,4,4) Model.
Variable Coefficient Std. Error t-Statistic Prob.
D(LWHEAT_YIELD(-1)) -0.025488 0.196943 -0.129416 0.8990
D(LWHEAT_YIELD(-2)) -0.216262 0.160628 -1.346355 0.2012
D(LWHEAT_TEMP) 0.378930 0.463448 0.817631 0.4283
D(LWHEAT_TEMP(-1)) -0.320502 0.496660 -0.645315 0.5299
D(LWHEAT_TEMP(-2)) -1.538222 0.534321 -2.878836 0.0129
D(LWHEAT_TEMP(-3)) -1.648004 0.582195 -2.830671 0.0142
D(LWHEAT_PRECIP) 0.341336 0.212161 1.608857 0.1317
D(LWHEAT_PRECIP(-1)) -0.295750 0.235570 -1.255463 0.2314
D(LWHEAT_PRECIP(-2)) -0.139246 0.202482 -0.687699 0.5037
D(LWHEAT_PRECIP(-3)) -0.452239 0.194169 -2.329105 0.0366
ECT(-1) -1.001 0.224848 -4.454906 0.0006
Cointeq = LWHEAT_YIELD - (3.7141*LWHEAT_TEMP + 1.5827
*LWHEAT_PRECIP -6.3935 )
In the estimation shown in table 6 indicate for model
to be fit, the sign and value of ECT must be negative
and significant. The coefficient of ECT is (-1.00)
means the speed of adjustment is (-1.00) which
implies that around 100% deviations from long-term
equilibrium are adjusted every year. The coefficient of
determination (R2) is 84, indicating that 84% of the
dependent variable’s variation i.e. wheat yield is
explained by the explanatory variables presented in
the linear model.
Wheat area
After satisfying all the necessary assumptions, the
relationship between wheat area as a dependent variable
and temperature and precipitation as independent
variables was estimated using ARDL (bounds) test. The
result of the test as depicted in table 7 shows long run
relationship amongst the variables.
Table 7. ARDL Bound Test Results.
Test Statistic Value K
F-statistic 3.83 2
Critical Value Bounds
Significance I0 Bound I1 Bound
10% 3.17 4.14
5% 3.79 4.85
2.5% 4.41 5.52
1% 5.15 6.36
The ARDL (Bound test) shows long-run relationship
among the variables. F Statistics value is 3.83 which
lies between lower and upper boundaries. It shows
long-run relationship since we take decision from
ECT. ECT must be negative and significant for the
model to be fit. When Error correction term is
negative and significant it shows long run
relationship. Akike Info Criterion (AIC) was used to
select the optimal lag length of variables included in
the ARDL model. Table 4.11 presents the results of
long-run relationship of the selected ARDL model
(1,0,0) using AIC.
Long Run Estimation
The long run estimation results are reflected in table
8 shows that both temperature and precipitation are
positively and significantly related to the area under
wheat in the long run.
Int. J. Agron. Agri. R.
Ahmad et al. Page 14
Table 8. Long Run Estimation Results ARDL (1,0,0).
Variable Coefficient Std. Error t-Statistic Prob.
Wheat_precip 104.962 93.003323 1.128584 0.2694
Wheat_temp 317.849 1627.611914 0.195286 0.8467
C 25345.874 14685.665593 1.725892 0.0962
Wheat_Area=25345.874+104.962whet_Mean_Precipitation+317.84
9wheat_Mean_Temperature
The table 8 reveals that temperature and precipitation
is positively and significantly related to area under
wheat cultivation in the long run. The equation shows
that if 1 percent increase in precipitation will increase
by 104.962 unit and if temperature increases by 1
unit, wheat area under cultivation will increase by
317.849 unit in the long run.
Short Run Estimation
The table 9 indicates the short run relationship between
wheat area and temperature and precipitation.
Table 9. Short Run Estimation Results of Cointegration
Form.
Variable Coefficient Std. Error t-Statistic Prob.
D(wheat_precip) 51.936661 35.977296 1.443595 0.1608
D(wheat_temp) 157.276433 798.399548 0.196990 0.8454
Ect(-1).cointeq(-1) -0.494814 0.181729 -2.722803 0.0114
Cointeq = wheat_area - (104.9621*wheat_precip + 317.8499
*Wheat_temp + 25345.8738 )
In the estimation, the sign and value of ECT must be
negative and significant respectively. The coefficient
of ECT is -0.49 means the speed of adjustment is -
0.49 which implies that around 49% deviations from
long-term equilibrium are adjusted every year. The
coefficient of determination (R2) is 24 indicating that
24% of the dependent variable’s variation i.e. wheat
area is explained by the explanatory variables
presented in the model applied.
Conclusion and recommendations
Agriculture is an important source of livelihood for
the rural communities of rainfed areas. More than
80% of the 35.6 million people of Khyber
Pakhtunkhwa are living in rural areas and depend on
agriculture. Out of 1.621 million hectares cultivated
area of KP, 47% is rain-fed. The food availability for
such areas is mainly dependent on agricultural
productivity which is further dependent on timely
rainfall and temperature that has now been affected
by climate change.
Keeping in view the importance of the issue and to fill
research gap current study has been designed to
assess the potential impacts of change in climate on
farm productivity. The result of the research shows
long run relationship among the variables. The Akike
Info Criterion (AIC) was used to select the optimal lag
length of variables and showed that both temperature
and precipitation are positively and significantly
related to the wheat yield in the long run. The results
reveal that if 1% change occur in precipitation wheat
yield will increase by 1.583% and if temperature
increases by 1% the wheat yield will increase by
3.714% in the long run. For the short run relationship,
the coefficient of ECT is (-1.00) which implies that
around 100% deviations from long-term equilibrium
are adjusted every year. The R2 is 84, indicating that
84% of the dependent variable’s variation i.e. wheat
yield is explained by the explanatory variables.
The ARDL (Bound test) shows long-run relationship
among the area related variables based on F Statistics
value. The ECT is negative and significant showing
long run relationship. AIC result shows that both
temperature and precipitation are positively and
significantly related to the area under wheat in the
long run. The result shows that 1 percent increase in
precipitation will increase 104.962% increase in area
and if temperature increases by 1%, wheat area under
cultivation will increase by 317.849% in the long run.
The short run relationship between wheat area and
temperature and precipitation shows that ECT is (-
0.49) which implies that around 49% deviations from
long-term equilibrium are adjusted every year. The R2
is 24 indicating that 24% of the dependent variable’s
variation i.e. wheat area is explained by the
explanatory variables.
The study recommends that Government should
workout with public and private research organizations
to design research plans for rainfed areas aiming at
evolving crops varieties which offer high yields along
with suitability to changing climatic scenarios such as
heat and cold resistance, short duration maturity,
needing less water, etc.
Int. J. Agron. Agri. R.
Ahmad et al. Page 15
Further research is required to estimate range of
temperature and precipitation within which wheat
productivity is optimum.
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Wheat crop responds to climate change in rainfed areas of District Mansehra, Khyber-Pakhtunkhwa- An Econometric analysis

  • 1. Int. J. Agron. Agri. R. Ahmad et al. Page 8 RESEARCH PAPER OPEN ACCESS Wheat crop responds to climate change in rainfed areas of District Mansehra, Khyber-Pakhtunkhwa- An Econometric analysis Rizwan Ahmad1 , Muhammad Zulfiqar*1 , Himatullah Khan1 , Jawad Ali2 , Arjumand Nizami2 , Dilawar Khan3 1 The University of Agriculture, Peshawar, Pakistan 2 Helvetas Swiss Intercooperation, Pakistan 3 University of Science and Technology, Kohat, Pakistan Article published on February 28, 2021 Key words: Climate change, Rainfed, Wheat, Productivity, Mansehra Abstract Agriculture in many ways is affected by climate change and has impact for productivity of crops particularly in rainfed areas. Climate change related research remained a poorly investigated area in KP and instant study filled that gap by investigating impacts of change in climate on farm productivity. The secondary data, spread over 30 years from 1984 to 2013 pertaining to temperature, precipitation, area under cultivation and yield of crops was collected. Analytical models used are ARDL Model. The results pertaining to impact of temperature and precipitation on wheat yield suggest long run relationship among the variables. Temperature is positively and significantly related in Mansehra. The precipitation is positively and significantly related. Short run relationship implies that around 100% deviations from long-term equilibrium are adjusted every year in case of Mansehra. The results wheat areas suggest long run relationship among the variables based on F Statistics value. Both temperature and precipitation are positively and significantly related to the area under wheat in the long run in case of Mansehra. Based on objectives of the research study and field findings recommendations offered include; farmers awareness drive, policies to promote adaptation measures, enhancing farmers’ adaptive capacity to strengthen local resilience, participation of farming community in formulation of policies, making meteorological information available to farmers, Design research plans to evolve crops varieties addressing changing climatic challenges, construct water harvesting structures for high efficiency irrigation and further research to estimate range of temperature and precipitation within which crops under study perform better. * Corresponding Author: Muhammad Zulfiqar  Zulfiqar@aup.edu.pk International Journal of Agronomy and Agricultural Research (IJAAR) ISSN: 2223-7054 (Print) 2225-3610 (Online) http://www.innspub.net Vol. 18, No. 2, p. 8-16, 2021
  • 2. Int. J. Agron. Agri. R. Ahmad et al. Page 9 Introduction Agriculture in many ways is affected by climate change and has impact for productivity of crops (Ziervogel 2009; Falco 2011 and Chandrasiri 2013). The negative effects of climate change are considered too high such as recurrent droughts, flooding, heat waves, cold waves and land deterioration (Adger 2003 and Rosenweig and Hillel 1998). In rainfed areas, climate is key to crop productivity, thus droughts, floods or extreme temperatures could devastate agriculture sector. This devastating situation could result into poor and unsustainable livelihood of the communities depending on agriculture in the rainfed areas (Calzadilla 2009 and Ahmad and Zulfiqar 2019). According to Climate Change Synthesis Report (2014), the limit of global surface temperature increases to 1.5 degrees Celsius and continues to rise beyond 2100 in all scenarios except lower emissions scenario. To come out with evidence about adverse effects of climatic changes on agriculture including ecosystem services became a critical challenge for development practitioners around the globe. It is internationally recognized that decreased productivity of agriculture sector means GDP level loss, decrease in income and consumption for the most vulnerable population and deterioration in households’ welfare. Thus influence of climate changes continuously poses major threat to rural livelihoods (Kangalawe and Lyimo 2013). Climatic variations and resultant weather patterns have already marked as negative effects on agricultural resources, food production and food security globally (Diao, 2010). Climate change may alter rainfall patterns, drought cycles and more frequent severe weather patterns and increased diseases and agricultural pests (Yanda P.Z. 2010 and Hewitson B.C. 2010). Moreover, consequent to climatic changes, productivity of farms decreased in general (Makungwa, 2010 and Parry 1999). Being an agricultural based economy, Pakistan is under immediate risk because of global climatic variability. The country ranked 12th amongst the most vulnerable states expected to have brunt of the climatic changes (Global climate risk index 2015). The climatic changes have led to increased vulnerabilities to agriculture, forestry and water resources upon which a large part of the economy and livelihood depend. Pakistan being a developing country is likely to face severe challenges on account of economic and social development, environmental sustainability and land degradation. The adverse outcome of climatic changes are already been felt in Pakistan because of recurring droughts, increased intensity of floods and un predictable weather patterns and changes in behavior of agricultural production system. Within the country, regions with arid land will be on the top of affected list. Such arid regions will face a whole brunt of adverse impacts in terms of their socio-economic conditions, physical, environmental as well as biological resources (Khan 2012). Agriculture is an important source of livelihood for the rural communities of rainfed areas. The majority of the 35.50 million masses living in Khyber Pakhtunkhwa are relying on rain-fed agriculture system. The food availability for such areas is dependent on agricultural productivity. The crop productivity/yield is dependent on timely rainfall specially in rainfed areas. District Mansehra selected for instant research study is one of the 34 districts of Khyber Pakhtunkhwa with almost 80% rainfed area out of its total 80,747 ha of cultivated area (GoKP 2017). In view of the fact that a change in climatic patterns has been occurring and will continue even in future, underlines the importance of understanding as how farmers perceive these changes and how they adapt to these variations. The perceptions of climate change play a vital role in farmers’ decisions of adopting protective measures against climate extremes and therefore, are important factors which need to be considered. Minimize the negative impacts of change in climate needs awareness of the farmers and policy makers. Therefore, through instant study, the impact of climate change in terms of precipitation and temperature on area and yield of wheat crop is investigated using time series data. The outcome and recommendation of the research study will have important implications for future policies addressing climate change within the country and farmers behavior towards crop husbandry.
  • 3. Int. J. Agron. Agri. R. Ahmad et al. Page 10 trict Mansehra is located in the North Eastern part of Khyber Pakhtunkhwa with 4,579 sq km of area. The district is mainly mountainous, with an altitude ranging from 200 meters in the south upto more than 4,500 meters in the north. The well-known Babosar pass is located on the northeastern border of the district. The winter climate is cold and the summer climate is pleasant. In the Kaghan Valley which is situated in the northern, the conditions in summer are cool whereas in the season of winter extremely cold and during this period there is snow fall of heavy magnitude. Summer and winter are dominant seasons of the district. The summer season spread over April to September, while that of winter from October to March. There are two farming seasons. The one is summer locally called as Kharif season and it starts from May and ends in September. Seasonal vegetables, rice and maize are the main crops of this season. The other is winter season locally called as Rabi season. The winter growing season starts from October and ends in March. Important winter season crops are wheat, seasonal vegetables and peas. Material and methods Selection of Study Area The study has been planned and carried out in district Mansehra of Khyber Pakhtunkhwa. The selection is based on rainfed nature of the district. The cultivated area of district Mansehra is 80,747 hectares out of which 77% is rainfed (GoKP 2015-16). Mansehra is situated at 34.33° North latitude, 73.2° East longitude and 1067 meters (https://www.maps- streetview.com/Pakistan/) dated 2.11.2017. Monthly average annual minimum temperature in Mansehra ranges from 2.6 to 21.3 oC, while monthly average annual maximum temperature in Mansehra ranges from 13.4 to 34.8 oC. Average annual precipitation in Mansehra ranges from 34-302 mm (https://en. climate- data.org/location/1299/). Selection of Crop The crop selected for the study is wheat. The crop selected is grown on vast areas of the rainfed district and have direct impact on the livelihoods of the people. The total cultivated area of district Mansehra is 80,747 hectares. The area brought under cultivation during winter season is 40,029 hectares out of which 37,374 hectares is under wheat i.e. 93.37%. Data Collection The secondary data, time series data, spread over 30 years from 1984 to 2013 was collected. The time series data included temperature, precipitation, area under cultivation and yield of wheat. The data related to temperature and precipitation was collected from Meteorological Department, Government of Pakistan, while data pertaining to area and yield was collected from the Crop Reporting Wing of the Agriculture Department, Government of Khyber Pakhtunkhwa. Analytical Modeling A 30 years meteorological data pertaining to precipitation and temperature was analyzed against area and productivity. The data was then subjected to an analysis using Auto Regressive Distributed Lag (ARDL), Co-Integration Technique (Engle 1987) and Bound Test of Co Integration (Pesaran and Shin 1999 and Pesaran et al. 2001 and Johnsen and Juselius 1990). The Autoregressive Distributed Lag (ARDL) model also called bound testing cointegration model was advanced by M.H. Pesaran and Y. Shin (1999). The rationale behind use of ARDL model is that the combination of time series variables in the study is stationary at level and integration at order 1. Thus in such a situation ARDL approach is most suitable econometric tool compared to some of the other econometric models. Additionally, it was also aimed to determine impact of diverse independent variables on the dependent variable both, for the short-run and for the long-run for which ARDL model is best suited. The ARDL produces the short run and long run coefficient concurrently along with followings OLS process for cointegration amid the involved variables. Another advantage of ARDL is that it offers flexibility about order of the integration pertaining to variables used. Further, it possesses the suitability regardless of the fact as whether the variables included are purely I(1), purely I(0) or whether mutually cointegrated but the same is not true if there is any variable having 2nd order difference.
  • 4. Int. J. Agron. Agri. R. Ahmad et al. Page 11 The common formula of ARDL model with n lags for variable Y and m lag for variable X stands as given below: 𝑌𝑡 = 𝛼0 + ∑ 𝛼𝑖𝑌𝑡 − 1 + ∑ 𝛽𝑖𝑋𝑡 − 𝑖 𝑚 𝑖=0 𝑛 𝑖=1 + 𝑈𝑡………..1 While general format of the ARDL ECM runs as below: 𝛥𝑌𝑡 = 𝛼0 + ∑ 𝛽𝑗𝑌𝑡 − 𝑖 + ∑ 𝛽𝑗𝑋𝑡 − 𝑗 + 𝜓𝐸𝐶𝑀𝑡 − 1 + ɛ𝑡 … … … … .2 Therefore given equation reveals the speed with which adjustment of parameter is taking place. It is also pertinent to note that for Error Correction (EC) Model to be significant; its value must be in negative form. The EC term states that any of the divergence occurring in long-run equilibrium amongst the variables is to be corrected in each period as well as the time period that is to be taken to come yet again to the long-run equilibrium point. ECMt-1 shows the residuals which are attained out of estimated co- integration mode. A regression analysis showed attribution of climatic changes to crop area and productivity. The productivity regression model used is as under: P = β0 + β1R+β2T+ e Where P = productivity per hectare R = rain/precipitation T = temperature βs = coefficients e = error term The area under cultivation regression model has been as under; A = β0 + β1R+β2T+ e Where A = Area in hectare R = rain/precipitation T = temperature βs = coefficients e = error term Diagnostic Tools Used The diagnostic tools used to satisfy various assumptions and to ensure that the results of the analytical model are without any bias included; ADF Unit Root Test to decide on analytical model (Kwiatkowski, Phillips, Schmidt and Shinn 1992; Maddala and Kim 1998; and Phillips and Xiao 1998); Autocorrelation Test - Brush Godfrey LM Test (Breusch, T. S. 1978 and Godfrey, L. G. 1978); Heteroscedasticity Test - Breusch-Pagan-Godfrey Test (Breusch, T.S. and A.R. Pagan, 1979) and Stability check Test - CUSUM Test & CUSUMSQ Test (Brown, R.L., J. Durbin and J.M. Evans 1975). Results and discussions Wheat Productivity Before econometric analysis using ARDL Model, certain assumptions were necessary to be satisfied. Therefore, a number of tests were conducted which are detailed below along with their results. ADF Unit Root For the econometric analysis of time series data, it is necessary that the data should be stationery. Therefore, the data was transformed to logarithm and then in order to determine stationarity of the data, ADF test was used. The test checked integration order. The test included extra lagged length of variable (dependent) in order to remove the problem of autocorrelation in the model. Justification of using ARDL model is based on ADF test for the stationarity of the data. The results of the ADF unit root test are given in table 1. Table 1. Results of the ADF Unit Root Test. Variable ADF Unit Root Test Order T-Statistics Prob. Values Logarithm of Wheat yield -6.722 0.0000 I(1) Logarithm Mean Temperature -4.339 0.002 I(0) Logarithm Mean precipitation -5.824 0.0000 I(0) The results in table 1 shows that data of variable ‘wheat yield’ is stationary at first difference while data of variables ‘temperature’ and ‘precipitation’ is stationary at level. The value of t-statistics is -6.772 and Probability value is 0.0000. Thus p value is less than 5% which means at 5% mean variable is stationary at level.
  • 5. Int. J. Agron. Agri. R. Ahmad et al. Page 12 Similarly t-statistics and p-values of temperature and precipitation reflect that both variables are stationary at level. The data stationarity was determined using same test by a number of researchers (Peter et al., 1988). Autocorrelation In order to know the existence of autocorrelation problem or otherwise, Brush God fray LM test was applied. The results of the test are presented in table 2. Table 2. Results of Brush God fray LM Test. F-statistic 0.920149 Prob. F(2,11) 0.4271 Obs*R-squared 3.869696 Prob. Chi- Square(2) 0.1444 Table 2 shows that the p-values associated with test statistic is greater than the standard significant level [i.e. 0.144> 0.05]. Thus, Brush’s LM test results reveal that the data is free of autocorrelation problem i.e. there is no autocorrelation. The same test to check autocorrelation was used Pervez et al., 2010. Heteroscedasticity The presence of Heteroscedasticity in the data could result in biased results. Therefore, it was important to check its presence or otherwise. For this purpose, Breusch-Pagan-Godfrey test was used. The results of the Breusch-Pagan-Godfrey (BPG) test are presented in the table 3. Table 3. Results of BPG test. F-statistic 0.994834 Prob. F(13,13) 0.5037 Obs*R-squared 13.46504 Prob. Chi- Square(13) 0.4126 Scaled explained SS 2.741691 Prob. Chi- Square(13) 0.9987 The diagnostic test for Heteroscedasticity using Breusch-Pagan-Godfrey test given in the table 3 shows at 5%, p-value associated with the test statistics is greater than the standard significance level [i.e. 0.4126> 0.05]. The results reveal that the data is homoscedastic and there is no problem of Heteroscedasticity. Stability Check For analyzing the stability of the long-run coefficients together with the short-run dynamics, the cumulative sum (CUSUM) and the cumulative sum of squares (CUSUM) test were applied. As shown in fig.s 1 and 2, both the CUSUM and the CUSUMQ plot residual are found inside the boundaries. That is to say that the stability of the parameters has remained within its critical bounds of parameter stability at 5%. -12 -8 -4 0 4 8 12 19 20 21 22 23 24 25 26 27 28 29 30 31 CUSUM 5% Significance Fig. 1. CUSUM Result. -0.4 0.0 0.4 0.8 1.2 1.6 19 20 21 22 23 24 25 26 27 28 29 30 31 CUSUM of Squares 5% Significance Fig. 2. CUSUM of Square Result. Both the figures clarify that the CUSUM as well as the CUSUMQ tests confirm the stability of the long-run coefficients along with the short-run dynamics. These tests are in line with the many other researchers work such as Sahbi F. (2012) and Stephen E. M. (1982). Analytical model-ARDL Bounds Test Results After satisfying all the necessary assumptions, the relationship between wheat yield as a dependent variable and temperature and precipitation as independent variables was estimated using ARDL (bounds) test. The result of the test as depicted in table 4 shows long run relationship amongst the variables.
  • 6. Int. J. Agron. Agri. R. Ahmad et al. Page 13 Table 4. ARDL Bound Test Results. Test Statistic Value K F-statistic 8.460 2 Critical Value Bounds Significance I0 Bound I1 Bound 10.0% 3.17 4.14 05.0% 3.79 4.85 02.5% 4.41 5.52 01.0% 5.15 6.36 The value of F Statistics in table 4 is 8.46 which is higher than upper boundary that shows long run relationship among the variables. Akike Info Criterion (AIC) is used to select the optimal lag length of variables included in the ARDL model. Table 6 presents the results of long-run relationship of the selected ARDL model (3,4,4) using SBC. The long run estimation results reflected in table 6 shows that both temperature and precipitation are positively and significantly related to the wheat yield in the long run. Table 5. Long Run Estimation Results of ARDL (3,4,4) Model. Variables Coefficients Std. Error t-Statistic Prob. Lwheat_temp 3.714 0.782195 4.748261 0.0004 Lwheat_precip 1.583 0.586459 2.698739 0.0182 C -6.39 2.913093 -2.194763 0.0469 Lwheat_yield=- 6.39+3.714lwheat_temperature+1.583lwheat_precipitation The scenario reveals that temperature and precipitation are positively and significantly related to wheat yield in the long run. The equation reflects that if 1% change occur in precipitation wheat yield will increase by 1.583% and if temperature increases by 1% the wheat yield will increase by 3.714% in the long run. Short Run Estimation The table 6 indicates the short run relationship between wheat yield and temperature and precipitation. Table 6. Short Run Estimation Results of Cointegration Form of ARDL (3,4,4) Model. Variable Coefficient Std. Error t-Statistic Prob. D(LWHEAT_YIELD(-1)) -0.025488 0.196943 -0.129416 0.8990 D(LWHEAT_YIELD(-2)) -0.216262 0.160628 -1.346355 0.2012 D(LWHEAT_TEMP) 0.378930 0.463448 0.817631 0.4283 D(LWHEAT_TEMP(-1)) -0.320502 0.496660 -0.645315 0.5299 D(LWHEAT_TEMP(-2)) -1.538222 0.534321 -2.878836 0.0129 D(LWHEAT_TEMP(-3)) -1.648004 0.582195 -2.830671 0.0142 D(LWHEAT_PRECIP) 0.341336 0.212161 1.608857 0.1317 D(LWHEAT_PRECIP(-1)) -0.295750 0.235570 -1.255463 0.2314 D(LWHEAT_PRECIP(-2)) -0.139246 0.202482 -0.687699 0.5037 D(LWHEAT_PRECIP(-3)) -0.452239 0.194169 -2.329105 0.0366 ECT(-1) -1.001 0.224848 -4.454906 0.0006 Cointeq = LWHEAT_YIELD - (3.7141*LWHEAT_TEMP + 1.5827 *LWHEAT_PRECIP -6.3935 ) In the estimation shown in table 6 indicate for model to be fit, the sign and value of ECT must be negative and significant. The coefficient of ECT is (-1.00) means the speed of adjustment is (-1.00) which implies that around 100% deviations from long-term equilibrium are adjusted every year. The coefficient of determination (R2) is 84, indicating that 84% of the dependent variable’s variation i.e. wheat yield is explained by the explanatory variables presented in the linear model. Wheat area After satisfying all the necessary assumptions, the relationship between wheat area as a dependent variable and temperature and precipitation as independent variables was estimated using ARDL (bounds) test. The result of the test as depicted in table 7 shows long run relationship amongst the variables. Table 7. ARDL Bound Test Results. Test Statistic Value K F-statistic 3.83 2 Critical Value Bounds Significance I0 Bound I1 Bound 10% 3.17 4.14 5% 3.79 4.85 2.5% 4.41 5.52 1% 5.15 6.36 The ARDL (Bound test) shows long-run relationship among the variables. F Statistics value is 3.83 which lies between lower and upper boundaries. It shows long-run relationship since we take decision from ECT. ECT must be negative and significant for the model to be fit. When Error correction term is negative and significant it shows long run relationship. Akike Info Criterion (AIC) was used to select the optimal lag length of variables included in the ARDL model. Table 4.11 presents the results of long-run relationship of the selected ARDL model (1,0,0) using AIC. Long Run Estimation The long run estimation results are reflected in table 8 shows that both temperature and precipitation are positively and significantly related to the area under wheat in the long run.
  • 7. Int. J. Agron. Agri. R. Ahmad et al. Page 14 Table 8. Long Run Estimation Results ARDL (1,0,0). Variable Coefficient Std. Error t-Statistic Prob. Wheat_precip 104.962 93.003323 1.128584 0.2694 Wheat_temp 317.849 1627.611914 0.195286 0.8467 C 25345.874 14685.665593 1.725892 0.0962 Wheat_Area=25345.874+104.962whet_Mean_Precipitation+317.84 9wheat_Mean_Temperature The table 8 reveals that temperature and precipitation is positively and significantly related to area under wheat cultivation in the long run. The equation shows that if 1 percent increase in precipitation will increase by 104.962 unit and if temperature increases by 1 unit, wheat area under cultivation will increase by 317.849 unit in the long run. Short Run Estimation The table 9 indicates the short run relationship between wheat area and temperature and precipitation. Table 9. Short Run Estimation Results of Cointegration Form. Variable Coefficient Std. Error t-Statistic Prob. D(wheat_precip) 51.936661 35.977296 1.443595 0.1608 D(wheat_temp) 157.276433 798.399548 0.196990 0.8454 Ect(-1).cointeq(-1) -0.494814 0.181729 -2.722803 0.0114 Cointeq = wheat_area - (104.9621*wheat_precip + 317.8499 *Wheat_temp + 25345.8738 ) In the estimation, the sign and value of ECT must be negative and significant respectively. The coefficient of ECT is -0.49 means the speed of adjustment is - 0.49 which implies that around 49% deviations from long-term equilibrium are adjusted every year. The coefficient of determination (R2) is 24 indicating that 24% of the dependent variable’s variation i.e. wheat area is explained by the explanatory variables presented in the model applied. Conclusion and recommendations Agriculture is an important source of livelihood for the rural communities of rainfed areas. More than 80% of the 35.6 million people of Khyber Pakhtunkhwa are living in rural areas and depend on agriculture. Out of 1.621 million hectares cultivated area of KP, 47% is rain-fed. The food availability for such areas is mainly dependent on agricultural productivity which is further dependent on timely rainfall and temperature that has now been affected by climate change. Keeping in view the importance of the issue and to fill research gap current study has been designed to assess the potential impacts of change in climate on farm productivity. The result of the research shows long run relationship among the variables. The Akike Info Criterion (AIC) was used to select the optimal lag length of variables and showed that both temperature and precipitation are positively and significantly related to the wheat yield in the long run. The results reveal that if 1% change occur in precipitation wheat yield will increase by 1.583% and if temperature increases by 1% the wheat yield will increase by 3.714% in the long run. For the short run relationship, the coefficient of ECT is (-1.00) which implies that around 100% deviations from long-term equilibrium are adjusted every year. The R2 is 84, indicating that 84% of the dependent variable’s variation i.e. wheat yield is explained by the explanatory variables. The ARDL (Bound test) shows long-run relationship among the area related variables based on F Statistics value. The ECT is negative and significant showing long run relationship. AIC result shows that both temperature and precipitation are positively and significantly related to the area under wheat in the long run. The result shows that 1 percent increase in precipitation will increase 104.962% increase in area and if temperature increases by 1%, wheat area under cultivation will increase by 317.849% in the long run. The short run relationship between wheat area and temperature and precipitation shows that ECT is (- 0.49) which implies that around 49% deviations from long-term equilibrium are adjusted every year. The R2 is 24 indicating that 24% of the dependent variable’s variation i.e. wheat area is explained by the explanatory variables. The study recommends that Government should workout with public and private research organizations to design research plans for rainfed areas aiming at evolving crops varieties which offer high yields along with suitability to changing climatic scenarios such as heat and cold resistance, short duration maturity, needing less water, etc.
  • 8. Int. J. Agron. Agri. R. Ahmad et al. Page 15 Further research is required to estimate range of temperature and precipitation within which wheat productivity is optimum. References Adger WN, Huq S, Brown K, Conway D, Hulme M. 2003. “Adaptation to climate change in the developing world”. Progress in Development Studies 3, 179-195. Ahmad R, Zulfiqar M. 2019. Climate change-farmers’ perception, adaptation and impact on agriculture in the Lakki Marwat district of Khyber Pakhtunkhwa. Sarhad Journal of Agriculture 35(3), 880-889 Breusch TS. 1978. "Testing for Autocorrelation in Dynamic Linear Models”. Australian Economic Papers 17,334–355. DOI:10.1111/j.1467-8454.1978.tb0 Breusch TS, Pagan AR. 1979. “A simple test for Heteroscedasticity and random coefficient variation”, Econometrica 47, 1287-1294. Brown RL, Durbin J, Evans JM. 1975. “Techniques for Testing the Constancy of Regression Relationships over Time,” Journal of the Royal Statistical Society, Series B 35, 149-192. Calzadilla A. 2009. Economy-wide impacts of climate change on agriculture in sub-Saharan Africa. Working Paper FNU-170. Hamburg: Hamburg University and Centre for Marine and Atmospheric Science. Chandrasiri WACK. 2013. “Farmers’ perception and adaptation to climate change: A case study in vulnerable areas of Kurunagala district”. Socio Economics and Planning Centre, Department of Agriculture, Peradeniya, Sri Lanka. Annals of Sri Lanka Department of Agriculture 15, pp. 13-23. Crop Statistics. 2016-17. Crop Reporting Services, Agriculture, Livestock and Cooperation Department, Government of KP. Diao X. 2010. “Economic Importance of Agriculture for Sustainable Development and Poverty Reduction: Findings from a Case Study of Ghana. Discussion paper”. International Food Policy Research Institute. Engle F, Granger WJ. 1987. Co-Integration and Error Correction: Representation, Estimation and Testing. Econometrica 55(2), 251-276. Falco DS, Yesuf M, Kohlin G, Ringler C. 2011. “Estimating the Impact of Climate Change on Agriculture in Low-Income Countries: Household Level Evidence from the Nile Basin, Ethiopia”, Environ Resource Econ, DOI 10. 1007/s10640-011- 9538-y, Springer Science+Business Media B.V. 2011. Godfrey LG. 1978. "Testing Against General Autoregressive and Moving Average Error Models when the Regressors Include Lagged Dependent Variables". Econometric 46, 1293-1301. GoKP. 2017. Crop Reporting Wing of the Agriculture Department, Government of Khyber Pakhtunkhwa Hewitson BC. 2010. “Climate Change Scenario Development in Sub-Saharan Africa” SARUA Leadership Dialogue Series Vol. 2, No.4, pp. 46-67. Johansen S, Juselius K. 1990. Maximum Likelihood Estimation and Inference on Cointegration with Applications to Demand for Money. Oxford Bulletin of Economics and Statistics 52. Kangalawe MYR, Lyimo JG. 2013. “Climate Change, Adaptive Strategies and Rural Livelihoods in Semiarid Tanzania”. Natural Resources 4, 266-278. Khan S, Hasan M, Khan MA. 2012. “People Perception about Climate Change and Adaptation in the Arid Region of Pakistan. The 2nd World Sustainability Forum-2012” Kwiatkowski D, Phillips PCB, Schmidt P, Shin Y. 1992. “Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root,” Journal of Econometrics 54, 159-178.
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