Agricultural foreign direct investment (AFDI) contributes to the long-term growth of developing countries. Sudan has rich agricultural resources with great potential for AFDI. However, so far, Sudan has not exploited this potential to attract investors from other countries, having less of a competitive advantage in agricultural production owing to local and international problems. In this study, we examined the effects of foreign investments of Gulf Cooperation Council (GCC) countries on agricultural exports in Sudan, in addition to other economic factors during 1990–2016 using the two-stage least squares (2SLS) model. The results showed that the investments of GCC countries in Sudan’s agricultural sector boosted agricultural exports. The exchange rate was found to be a key determinant factor of GCC countries deciding to invest in Sudan. We recommend that the Central Bank of Sudan encourage policies to stabilize the exchange rate to attract more agricultural investment from GCC countries.
30 November 2012 in African Journal of Agricultural Research
This article analyzes the determinants of consumers’ willingness-to-pay premium for organic tomatoes and explores the production potential. Descriptive statistics were used to summarize consumption characteristics and a logit model was used to understand the socioeconomic factors affecting consumers' choices. Results indicated that consumers are willing to pay higher prices for organic vegetables. This willingness varied with four socioeconomic variables: Age, income, education, and wife’s employment status and two opinion variables, namely shape and availability of organic products. There is a need to bolster consumers’ confidence in organic labels and to inform them about the availability of such products in the market. Key words: Willingness-to-pay, organic vegetables, logit model, market.
Saudi Arabia implements a wide range of non-tariff measures on imports and exports. Different research articles have quantified the effect of non-tariff measures on trade, but their effect on Saudi Arabia has not been quantified. The major objective of this paper is to quantify the effect of non-tariff measures on the imports of Saudi Arabia. Panel data from 2000 to 2022 for four major regions trading with Saudi Arabia are used to estimate the panel ARDL gravity model. The results of the bound test confirm the presence of a long-run association between the model variables. In the long-run, the per capita income of Saudi Arabia is the main determinant of imports. In contrast, in the short-run the per capita income has no influence, and the non-tariff measures have a negative effect on import value. At the cross-sectional level, the results confirm the negative effect of non-tariff measures on the selected trade partners with varying degrees. The results ascertain the detrimental effect of the application of technical and non-technical measures on Saudi Arabia’s imports. We recommend policymakers in Saudi Arabia adopt a more transparent policy of NTMs application that leads to a sustainable supply of goods and services and ensures sustainable trade.