Evaluating the long-run effects of globalization on OECD crop output via the pooled Bewley estimator: a new approach to crop production systems

Introduction The primary objective of this study is to examine the long-run effects of globalization on crop output in OECD countries using panel data from 1990 to 2020. Methods The study employs a novel Pooled Bewley (PB) estimator proposed by Chudik, Pesaran, and Smith and implemented by Asnani, Chudik, and Strackman in their most recent work. The PB estimator is based on the Bewley transformation of the autoregressive-distributed lag model and can be used to obtain long-run coefficients in dynamic heterogeneous panel data models. Results The empirical results show that the marginal effects of fertilizer use, labor units, technical innovations, and globalization are statistically significant and positive for crop production in the OECD, whereas the inflation rate and capital units have adverse effects. Moreover, the effects of CO₂ emissions and capital units are not statistically significant. Discussion The empirical findings of the study suggest adopting and sustaining pro-globalization public and private policies, as they have expansionary effects on crop production in OECD countries.