How Investment in RD&E Offset the Negative Impact of Climate Change on the Tunisian Agricultural Productivity Sector

The aim of this paper is to examine the impact of research, development extension (RD&E) and climate change (measured in terms of change in rainfall) on the productivity growth of agriculture in Tunisia during the period 1970-2011, using output-based Törnqvist index combined with econometric regression. Results show that RD&E and climate change are significantly affecting the long-run productivity growth of the Tunisian agriculture. Climate change lessens the productivity of agriculture in the long run whilst RD&E boosts its productivity. Empirical findings suggest that an increase in agricultural RD&E investment is critical to improving long-run productivity growth in the face of adverse climate change.