This paper aims to examine the key determinants and efficiency of China’s agricultural exports with its 114 importing countries by applying the Stochastic Frontier Analysis (SFA) on an augmented gravity model for the period of 2000–2019. The Poisson Pseudo Maximum Likelihood (PPML) and the fixed effect models were also estimated simultaneously to confirm the robustness of our findings. The results reveal that China’s economic size (GDP) and its importing countries, the Belt and Road Initiative (BRI), common border, and the Chinese language positively determine China’s agricultural export flows. The results, on the other hand, also reveal that China’s agricultural export is adversely influenced by the income (per capita GDP) of China and its trade partners, currency depreciation, distance, and landlocked. On an average account, China has untapped the potential of 51% in its agriculture export with the countries used in this study. We provide policy suggestions as part of our study.
Considering the importance of agri-food exports for Nigeria in the face of dwindling revenue from its oil exports. Therefore, this study provides empirical insights on the determinants and potential of agri-food exports from Nigeria to 70 major trading countries between 1995 and 2019 by applying a Stochastic Frontier Analysis (SFA) on a gravity model. We also estimate a variety of techniques, including the fixed effects, Ordinary Least Square (OLS), Pseudo Poisson Maximum Likelihood (PPML), and Heckman models to confirm the robustness of our results. We show that the economic size (GDP) of Nigeria and its trading countries, importers’ population, EU membership, ECOWAS membership and contiguity stimulate agri-food export. Also, we show that bilateral distance, domestic population, exchange rate, language, and landlocked adversely affect agri-food exports. The potential for agri-food trade expansion exists with mostly world biggest economies (including China, the USA, Brazil, India, Russia, Japan, and EU countries) and Nigeria’s border countries. Policy directions for agri-food export expansion are provided.
26 August 2021 in Agricultural Economics (zemědělská Ekonomika)
Determinants, efficiency and potential of agri-food exports from Nigeria to the EU: Evidence from the stochastic frontier gravity model | Nazir Muhammad Abdullahi, Olufemi Adewale Aluko, Xuexi Huo | Agricultural Journals
29 March 2019 in Review of Innovation and Competitiveness
Purpose. The purpose of this study is to trace the theoretical developments of the gravity model of trade. The key question is: what are the dominant features of the development of the gravity trade model? Methodology. This research is conducted by employing a number of methods that include the historical, descriptive and analytical methods. The main contribution of this paper is to trace the historical and theoretical development phases of the gravity model. Findings. This study is a novel attempt in terms of the identification of the four distinctive phases of the development of the gravity model. This work would, therefore, expand the existing literature on the gravity model. We argue that the development of the gravity model is the outcome of many research efforts. A large body of literature has given the model a solid theoretical foundation. But there is no consensus about the proper econometric estimation methods of the model. The gravity model is significant both historically and analytically. It is a useful tool for the analysis of international trade. It has become a popular research device used by the researchers and policy makers around the world. The gravity is regarded as one of the most successful models in the literature of international economics. Originality. The original contributions of this paper lie in streamlining the consistent historical development of the gravity model over a longer period of time-frame, ranging from 1885 to 2018. Limitations and Implications. This work is theoretical aspects of the trade gravity model. Future researchers could overcome the limitations by combining the theoretical and empirical studies in a paper. This paper can help the future researchers in dealing with the broad body of literature of gravity model. Acknowledement. This study was supported by the National Natural Science Foundation of China (grants No.71673223 & 71473197), and a PhD scholarship from the China Scholarship Council (CSC). The first author would like to thank the CSC for the financial support. He also acknowledges the invaluable research advice and guidance received from Dr. Yoto V. Yotov, professor at the School of Economics of the Lebow College of Business at Drexel University, Philadelphia, USA. The authors are highly grateful to the anonymous reviewers, managing editor, and the editor-in chief for their kind help and critical comments on the earlier drafts of the paper. However, the authors are responsible for the contents and limitations of the study. They declared no conflict of interests.
6 April 2024 in Environment, Development and Sustainability
This study aims to identify the major factors influencing the Cambodian rice exports through an application of the dynamic gravity framework estimated by the Generalized Least Square (GLS), the Poisson Pseudo-Maximum-Likelihood (PPML), and the Heckman Sample Selection models, based on a period of 22-year panel data (1995–2016) and a total of 40 selected importing partners. The results show that the historical ties, the policy of exchange rate and the agricultural land reform promote the rice exports; the expansion of the exports to the trading partners, especially the EU, China and the ASEAN countries are particularly highlighted. As a macroeconomic issue and resistance factor, the economic recession, impeding the exports flows, would require further special attentions.