The sugar industry in Swaziland is the highest contributor to the government treasury through taxation, social services and trade. The sugar industry also plays a crucial role in the Swaziland’s economy by influencing economic growth and employment. Given the role of the Swaziland’s sugar industry, it is therefore important to understand the influencing factors of the Swaziland sugar exports volumes to its major trading partners. The study objective was to analyze the factors determining sugar export from Swaziland to her trading partners using a gravity model approach. The study used panel dataset for the period 2001 to 2013. The results showed that Swaziland’s GDP, importer’s GDP, importer’s land area and official common language had significant positive effects on Swaziland’s sugar exports. The study further revealed that the creation of COMESA and EU trading blocs had significant positive effects on the Swaziland’s sugar exports. This implies that the above-mentioned factors have contributed to the sugar trade flows increase during the time period under study. On the other hand, importer’s population, Swaziland openness and distance between Swaziland and her trading partner’s capital cities had a significant negative effect on Swaziland’s sugar export flows. It is therefore recommended that policies that lead to the exceptional advancement of the Swaziland and importer’s economy should be promoted which will have an effects on the Swaziland GDP and importer’s GDP. Trading with less self-sufficient, neighbouring countries and deepening the economic integration processes enhances Swaziland sugar exports flows.
Given that fish and fishery products are ranked among the most traded food commodities globally, with developing countries accounting for the bulk of the world’s fish exports, the analysis of fish trade flows is of key importance for any policy measure in the fisheries sector. This study evaluates the determinants of fish trade flows by applying the generalized gravity model. Using panel data covering a period of 14 years for 54 African countries, the gravity model is estimated using the Tobit regression to overcome estimation challenges in the presence of zero trade observations. The results suggest that a 1% increase in exporters’ GDP, importers’ GDP, population, exporters’ fish production, and countries sharing a common border increased fish trade flows by 8%, 14 %, 4%, 36% and 60%, respectively. On the other hand, importers’ fish production, and distance reduced fish trade flows by 5% and 17%, respectively. The results further shows that the belonging to ECOWAS, EAC, SADC and AMU has significantly enhanced intra-fish trade flows thereby contributing to gross trade creation for fish. The results indicate that the current demand for fish is very high such that current production is unable to meet the consumption needs. This calls for consolidated efforts in investment and development of the aquaculture sector as an alternative to the dwindling fish supplies from the wild environment. The findings also demonstrate the need for regional blocs to improve the transport networks on the continent by, among others, adopting a regional cooperation strategy centered on infrastructure development.
No abstract
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.