African Growth and Opportunity Act and trade performance in Nigeria

Osabohien, Romanus; Adeleye, Bosede Ngozi; Osabuohien, Evans

doi:10.1016/j.heliyon.2021.e06410

Cited by 12 publications

(5 citation statements)

References 13 publications

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“…Nonetheless, when we incorporate these two agreements, the AGOA t showed a strong negative (−4.2) effect on REC ict and REC _ WM ict of Nigerian cocoa at a 1% level of significance. Osabohien et al (2021) revealed that Nigeria is yet to optimize the benefits derivable from the AGOA initiative. Contrarily, Sorgho and Tharakan (2019) found that AGOA has positively impacted African countries.…”

Section: Resultsmentioning

confidence: 99%

Relative export competitiveness of the Nigerian cocoa industry

Abdullahi¹,

Zhang

Shahriar

et al. 2021

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Purpose This paper aims to derive the time-varying relative export competitiveness (REC) of the Nigerian cocoa sector against Nigeria’s share of world agricultural exports (REC_WA) and world merchandise exports (REC_WM) from 1995 to 2018. By concentrating on different factors such as demand and supply capacity, price factors and exchange rate, the authors examine the determinants of REC. Design/methodology/approach The authors calculated three different REC indexes. The authors also developed the relative symmetric export competitiveness index for comparative advantage calculation and avoiding the possible bias. The determinants of REC for Nigerian cocoa were captured using the short-run regression (SRR) model. Findings The study showed that Nigeria’s cocoa exports are still competitive despite experiencing some declining stages. Based on the SRR model, higher per capita income had a positive effect on the REC, while higher domestic prices significantly reduced the REC of cocoa. Further, the African Growth Opportunity Act agreement adversely affected the REC of cocoa. Originality/value This study provides a foundation for future research and enhances the literature on agricultural trade. This research makes a few contributions both from a scientific and a policy perspective. First, it is the first study on the REC analysis for the Nigerian cocoa industry. Second, a wide range of comparisons of REC among the world’s largest cocoa exporters was provided following implications of the various economic policies and local policy strategies. Third, the latest 24-year data sets were covered.

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Section: Resultsmentioning

confidence: 99%

Relative export competitiveness of the Nigerian cocoa industry

Abdullahi¹,

Zhang

Shahriar

et al. 2021

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“…Empirical studies exploring the direct influence of AGOA on poverty are surprisingly sparse, and results from the indirect studies predominantly underscore a tenuous link between the implementation of AGOA and discernible poverty reduction [65]. Computable General Equilibrium (an economic model used to analyze the economy-wide impact of policy changes, market shocks, or other external changes)-based simulations suggest that AGOA may confer income and welfare gains for unskilled and generally poor workers [68]. Researchers also hypothesize potential poverty reduction impacts based on observed employment gains and growth effects.…”

Section: On Poverty Levelsmentioning

confidence: 99%

The Impacts of the African Growth Opportunity Act on the Economic Performances of Sub-Saharan African Countries: A Comprehensive Review

Tadesse

2024

Sci

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The African Growth Opportunity Act (AGOA) has been a crucial trade and development initiative, offering preferential access to qualified Sub-Saharan African (SSA) countries to the United States market since its enactment in 2000. This paper presents a comprehensive review of scholarly articles and policy reports that analyze the impact of AGOA on the economic performance of SSA countries. Employing various econometric methods and data analysis techniques, researchers have investigated the effects of AGOA on trade flows, foreign direct investment (FDI) inflows, employment, economic growth, and poverty levels. The findings reveal that AGOA has positively affected the region’s trade, particularly in apparel, textiles, and agriculture. However, its influence on promoting export diversification and attracting FDI is nuanced, with substantial heterogeneity among the beneficiary countries and industries within each country. While some SSA countries have experienced substantial export growth and FDI inflows, others have not fully leveraged the benefits of AGOA due to absorptive capacity constraints and governance challenges. AGOA’s effectiveness in promoting broad-based employment, GDP growth, and poverty reduction remains an active area of inquiry, necessitating further research to understand the policy’s sustained impact and inform future trade policy designs for SSA countries.

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“…Furthermore, regional trading blocs can also play a significant role in promoting trade and economic integration. For Nigeria, the Economic Community of West African States is a regional trading bloc promoting economic cooperation and integration among its member states (Osabohien et al, 2021). Through ECOWAS, Nigeria can work towards aligning its trade policies and procedures with those of its neighboring countries, harmonizing regulations and standards, and facilitating the movement of goods and services across borders (Dynamics of Trade between Nigeria and Other ECOWAS Countries, n.d).…”

Section: Embracing Regional Trading Blocks: a Focus On Ecowas For Nig...mentioning

confidence: 99%

Navigating Trade Protectionism: Its Implications on Global Procurement Activities and the Nigeria and U.S. Economy

Okogwu,

Egbokhaebho,

Raji

et al. 2023

Agr. Manag. Dvp. Ntn

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This paper examines the implications of trade protectionism on Nigeria’s economy, with a particular focus on the sectors that heavily rely on exporting oil and gas products to the United States (U.S). Conversely, the U.S. occasionally resorts to restrictive measures to defend domestic industries against competitive Nigerian imports, primarily to conserve domestic employment and promote indigenous innovation The reliance on oil exports also poses challenges for Nigeria’s diversification efforts and its ability to develop other sectors of the economy. In recent years, there has been a growing trend of protectionist measures implemented by countries around the world, which has the potential to disrupt global supply chains and affect international trade. As a major oil exporter, Nigeria is vulnerable to global oil price changes, and any increase in trade barriers, such as tariffs or quotas, could have significant implications for the country’s overall economic growth. Historically, nations have adopted protectionist strategies to shield domestic industries, ensure economic stability, and protect employment. However, the rise in such measures in recent years has disrupted global supply chains, inflating procurement costs and imposing challenges to businesses that rely heavily on international sourcing. In navigating this convoluted trade milieu, the paper proposes a set of adaptive strategies. Emphasis is placed on the endorsement of regional trading blocs, advocating the benefits of memberships like ECOWAS for Nigeria and NAFTA/USMCA for the U.S. Such affiliations can serve as buffers against global protectionist winds. Furthermore, harnessing technology in procurement operations is underscored as a critical tool for businesses, aiding in the mitigation of potential disruptions and costs instigated by protectionism. In conclusion, while trade protectionism addresses certain immediate national concerns, its cascading effects on global procurement and specific bilateral relations mandate an informed, strategic response to ensure sustained economic growth and stability.

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African Growth and Opportunity Act and trade performance in Nigeria

Cited by 12 publications

References 13 publications

Relative export competitiveness of the Nigerian cocoa industry

Relative export competitiveness of the Nigerian cocoa industry

The Impacts of the African Growth Opportunity Act on the Economic Performances of Sub-Saharan African Countries: A Comprehensive Review

Navigating Trade Protectionism: Its Implications on Global Procurement Activities and the Nigeria and U.S. Economy

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