International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS)
Vol. 6 No. 5 (2026): October (ON-PROGRESS)

CLIMATE DYNAMICS AND AGRICULTURAL SECTOR PERFORMANCE IN INDONESIA: A PROVINCIAL PANEL DATA ANALYSIS

Rian Hilmawan (Mulawarman University)
Siti Amalia (Department of Economic Education, Yogyakarta State University)
Farah Diba Muna (Department of Economics, Mulawarman University)



Article Info

Publish Date
10 Aug 2026

Abstract

This study examines the effect of climate dynamics on agricultural sector performance in Indonesia using province-level panel data for the period 2014–2023. Employing panel regression estimations under several specifications, the analysis investigates whether average temperature and rainy-day frequency, as the main climate-related variables, are associated with real agricultural Gross Regional Domestic Product (GRDP), which captures the market value in the food and horticultural crop subsectors. The empirical results indicate that temperature is the most robust climate-related predictor of agricultural GRDP across model specifications. By contrast, the effect of rainy-day frequency is more sensitive to the inclusion of year fixed effects, suggesting that rainfall-related effects may be influenced by common annual shocks or broader time-specific conditions. Population is generally positively associated with real agricultural GRDP, although its magnitude weakens after accounting for year effects. Overall, the Driscoll–Kraay estimations confirm that temperature remains a consistent predictor of agricultural GRDP, while the estimated effects of rainy days, land cover, and population are more dependent on model specification, particularly the treatment of year fixed effects.

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Journal Info

Abbrev

IJEBAS

Publisher

Subject

Economics, Econometrics & Finance

Description

This journal aims to examine new breakthroughs and current issues regarding advances in science and technology in the fields of Economics, Business, Sharia Administration, Accounting and Agriculture ...