Determinants, efficiency and potential of agri-food exports from Nigeria to the EU: Evidence from the stochastic frontier gravity model

Abstract

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.

Exploring the Inhibitory Effect of RASFF on China-EU Trade of Rice-Based Products

“…If the relative economic scale of EU member states is larger, rice-based product imports from China will be smaller. 39 This finding can be explained by the high income-driven the optimization for upgrading the food consumption of households, which may generate rigid demand for organic rice products and reduce demand for rice-based products that are possibly related to GM ingredients. This also indicates that rice-based products will have greater trade potential for development in the high-end market.…”

Determinants of Vietnam's potential for agricultural export trade to Asia-Pacific economic cooperation (APEC) members

“…The most recent study on the export of agricultural products from developing economies to the EU was conducted by Abdullahi et al [ 13 , 14 ]. This study used a stochastic frontier analysis to investigate the determinants, efficiency, and potential of agricultural products exports from Nigeria to the EU from 1995 to 2019.…”

Examining the determinants and efficiency of China’s agricultural exports using a stochastic frontier gravity model

“…with the big economics. Abdullahi, Aluko [28] examined the factor that influence agri-food exports from Nigeria to its importing nations (the EU), along with its efficiency and potential. The study uses a panel dataset spanning 1995 to 2019 to show that Nigerian food exports are influenced by economic size, per capita income, EU new members and distance.…”

“…The inclusion of SFA to the gravity exports equation allows the model to estimate bilateral potential exports. The error term can impact the export frontier values positively or negatively thereby allowing export frontier to vary around the influential component of the model [28,32]. After that, the export gap may be calculated by comparing actual exports to the estimated maximum exports.…”