Trade Liberalization Policy and Competitiveness of Cocoa Beans Exports in Nigeria (1961-2017)
The cocoa sector in Nigeria has experienced decline in production, yield, exports coupled with its inability to attain global standards and targets and, gradual loss of competitiveness at the world market. Trade liberalization was government’s panacea to the sector’s problem although, cocoa competit...
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| Format: | Article |
| Language: | English |
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Warsaw University of Life Sciences Press
2021-03-01
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| Series: | Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego |
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| Online Access: | https://prs.sggw.edu.pl/article/view/2422 |
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| author | Ogheneruemu Obi-Egbedi Jamiu Hussayn Isaac Oluwatayo |
| author_facet | Ogheneruemu Obi-Egbedi Jamiu Hussayn Isaac Oluwatayo |
| author_sort | Ogheneruemu Obi-Egbedi |
| collection | DOAJ |
| description | The cocoa sector in Nigeria has experienced decline in production, yield, exports coupled with its inability to attain global standards and targets and, gradual loss of competitiveness at the world market. Trade liberalization was government’s panacea to the sector’s problem although, cocoa competitiveness remains an issue since liberalization. Therefore, the relationship between trade liberalization policy and competitiveness of Nigeria’s cocoa exports was examined in this study using data for the period 1961-2017. Cocoa market share was used to measure competitiveness while analytical tools employed were: ADF test, Johansen co-integration test and the vector error correction model (VECM). Market share, quantity of cocoa export and inflation rate were stationary at original level while others, at first difference. The co-integration test showed seven co-integrating equations. Trade liberalization policy was found to be an important driver of competitiveness. In addition, area harvested, production quantity and export quantity positively influenced competitiveness while world price of cocoa, interest rate on agricultural loans, exchange rate and trade liberalization influenced negatively. Therefore, appropriate trade policy formulation and implementation is recommended while, specific attention should be paid to monetary policies and cocoa production by the government. |
| format | Article |
| id | doaj-art-033cd2cfcc48424fb72dcdffa9a8618f |
| institution | Kabale University |
| issn | 2081-6960 2544-0659 |
| language | English |
| publishDate | 2021-03-01 |
| publisher | Warsaw University of Life Sciences Press |
| record_format | Article |
| series | Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego |
| spelling | doaj-art-033cd2cfcc48424fb72dcdffa9a8618f2025-02-04T10:43:10ZengWarsaw University of Life Sciences PressZeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego2081-69602544-06592021-03-0121110.22630/PRS.2021.21.1.1Trade Liberalization Policy and Competitiveness of Cocoa Beans Exports in Nigeria (1961-2017)Ogheneruemu Obi-Egbedi0Jamiu Hussayn1Isaac Oluwatayo2University of Ibadan, NigeriaUniversity of Ibadan, NigeriaUniversity of Venda, South AfricaThe cocoa sector in Nigeria has experienced decline in production, yield, exports coupled with its inability to attain global standards and targets and, gradual loss of competitiveness at the world market. Trade liberalization was government’s panacea to the sector’s problem although, cocoa competitiveness remains an issue since liberalization. Therefore, the relationship between trade liberalization policy and competitiveness of Nigeria’s cocoa exports was examined in this study using data for the period 1961-2017. Cocoa market share was used to measure competitiveness while analytical tools employed were: ADF test, Johansen co-integration test and the vector error correction model (VECM). Market share, quantity of cocoa export and inflation rate were stationary at original level while others, at first difference. The co-integration test showed seven co-integrating equations. Trade liberalization policy was found to be an important driver of competitiveness. In addition, area harvested, production quantity and export quantity positively influenced competitiveness while world price of cocoa, interest rate on agricultural loans, exchange rate and trade liberalization influenced negatively. Therefore, appropriate trade policy formulation and implementation is recommended while, specific attention should be paid to monetary policies and cocoa production by the government.https://prs.sggw.edu.pl/article/view/2422cocoacompetitivenessmarket sharetrade liberalization policy and vector error correction model |
| spellingShingle | Ogheneruemu Obi-Egbedi Jamiu Hussayn Isaac Oluwatayo Trade Liberalization Policy and Competitiveness of Cocoa Beans Exports in Nigeria (1961-2017) Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego cocoa competitiveness market share trade liberalization policy and vector error correction model |
| title | Trade Liberalization Policy and Competitiveness of Cocoa Beans Exports in Nigeria (1961-2017) |
| title_full | Trade Liberalization Policy and Competitiveness of Cocoa Beans Exports in Nigeria (1961-2017) |
| title_fullStr | Trade Liberalization Policy and Competitiveness of Cocoa Beans Exports in Nigeria (1961-2017) |
| title_full_unstemmed | Trade Liberalization Policy and Competitiveness of Cocoa Beans Exports in Nigeria (1961-2017) |
| title_short | Trade Liberalization Policy and Competitiveness of Cocoa Beans Exports in Nigeria (1961-2017) |
| title_sort | trade liberalization policy and competitiveness of cocoa beans exports in nigeria 1961 2017 |
| topic | cocoa competitiveness market share trade liberalization policy and vector error correction model |
| url | https://prs.sggw.edu.pl/article/view/2422 |
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