Abstract:Th e article analyses the country and industry specifi c determinants of the horizontal and vertical intra-industry agri-food trade between the Baltic Countries and the European Union in 1999-2013. Results obtained by the GMM panel model estimations suggest that distance is negatively related to IIT, implying that geographical distance is an obstacle for intra-industry agri-food trade. Moreover, factor endowments are ambiguously related to IIT as land is found to be negatively, while labour and machinery to be… Show more
“…However, in our analysis, distance has a positive and statistically significant impact at 5% level on Nigeria's agri-food exports with the EU, only in our baseline model. This finding contradicts prior studies (Castillo et al 2016;Jambor et al 2016;Osabuohien et al 2019). Distance in agricultural trade reflects transportation costs as well as the differences in climatic and cultivation conditions between trading partners.…”
This study uses an extended gravity model to examine the determinants, efficiency and potential of agri-food exports from Nigeria to the EU for the 1995–2019 period. It uses a stochastic frontier analysis (SFA) to estimate the extended gravity model. The results show that the economic size (GDP) of Nigeria and the EU countries, as well as bilateral distance, positively determine agri-food exports from Nigeria to the EU. Also, the results show that Nigeria's agri-food exports to the EU are negatively determined by the income (per capita GDP) of Nigeria and its EU trading countries, bilateral exchange rate and EU new member states (NMS). The results further show that Nigeria scores relatively low in terms of the efficiency of its agri-food exports to the EU countries. On a final note, the study shows that Nigeria's agri-food exports with the EU have a relatively large potential that has not been exploited. We document policy recommendations in this study.
“…However, in our analysis, distance has a positive and statistically significant impact at 5% level on Nigeria's agri-food exports with the EU, only in our baseline model. This finding contradicts prior studies (Castillo et al 2016;Jambor et al 2016;Osabuohien et al 2019). Distance in agricultural trade reflects transportation costs as well as the differences in climatic and cultivation conditions between trading partners.…”
This study uses an extended gravity model to examine the determinants, efficiency and potential of agri-food exports from Nigeria to the EU for the 1995–2019 period. It uses a stochastic frontier analysis (SFA) to estimate the extended gravity model. The results show that the economic size (GDP) of Nigeria and the EU countries, as well as bilateral distance, positively determine agri-food exports from Nigeria to the EU. Also, the results show that Nigeria's agri-food exports to the EU are negatively determined by the income (per capita GDP) of Nigeria and its EU trading countries, bilateral exchange rate and EU new member states (NMS). The results further show that Nigeria scores relatively low in terms of the efficiency of its agri-food exports to the EU countries. On a final note, the study shows that Nigeria's agri-food exports with the EU have a relatively large potential that has not been exploited. We document policy recommendations in this study.
“…The economic mass has been represented in various ways in the gravity model, that is, some researchers take the GDP of the importer alone as a determinant of market size, similar to Chu and Ahsan (2014). In our study, similar to some researchers, we indicate the product of the GDP of exporters and importers as a market size proxy for separating demand and supply effects (Jambor et al, 2016;Kea et al, 2019). Our study predicts positive signs from the GDP variable.…”
The purpose of this research is to study the determinants of export, import and overall trade performance. The article employed the panel gravity model along with the analytical approaches of the fixed-effects, random-effects, Poisson Pseudo-Maximum-Likelihood (PPML) and Heckman selection models. This analysis is based on a panel data set from 1989 to 2015 (27 years) for a total of 20 selected largest leather importing partners. The findings are consistent with the Heckscher–Ohlin (H–O) theory, meaning that Bangladesh could chase for the comparative advantage in the leather industry through the effective planning and efficient utilization of its abundant population of 163 million. It is demonstrated that the wealthier nations are likely to trade in the Bangladeshi leather sector. But the key problem in the ways of trade is the presence of high trade and transport costs. Among the major causes of high-trade costs in Bangladesh are the cumbersome and complex cross-border trading practices, which also increase the possibility of corruption. Moreover, the trading of leather products is negatively influenced by the COVID-19. These problems and issues need to be addressed to facilitate Bangladesh’s leather exports. Also, Bangladesh is a founding member of China’s Belt and Road Initiative (BRI). Exporting to Chinese consumer markets and using network connectivity to boost leather trade with other participating countries in the BRI would create a considerable growth potential for Bangladesh. To this end, the issue of technological developments and research innovations could be prioritized. This work provides both industrial and policy directions for future research on trade of leather products by means of an application of the gravity model. There are some methodological innovations of the model. The concluding remarks have generated some insights and lessons that would be useful in the development of leather trade across the world.
“…Many researchers have used the gravity model as a research base to look at the factors that influence trade flows, with the dependent variable export of a commodity and the independent variable in the form of GDP of both countries and geographical distance (Jambor et al 2016). However, only slight researchers have begun to adjust the model to better represent their results, for example, by replacing geographical distance with economic distance and nominal GDP with real GDP.…”
Palm oil is a superior product from Indonesia that is continuously and widely used for daily needs such as cooking, grooming, and manufacturing. However, this potential must be supported by oil palm business actors' performance to maintain its intensity and competitiveness. This study investigates how various factors affect Indonesia's crude palm oil (CPO) export intensity and competitiveness by employing panel regression and the basic gravity model. The panel data used here is a 20-year time series with cross-sections from five major importers from 1999 to 2018. The results show that the importer's gross domestic product (GDP) and quantity of export significantly and positively affect Indonesia's CPO export intensity, while the exporter's GDP and economic distance has a significant and negative effect. The factors that positively and significantly influence competitiveness are soybean's import value and Roundtable on Sustainable Palm Oil (RSPO) certification, while Malaysian CPO's export and population of importing countries negatively affect Indonesian CPO competitiveness.
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.