Determinants and Potential of Agri-Food Trade Using the Stochastic Frontier Gravity Model: Empirical Evidence From Nigeria

Abdullahi, Nazir Muhammad; Zhang, Qiangqiang; Azeez, Aminah Bolanle

doi:10.1177/21582440211065770

Cited by 23 publications

(11 citation statements)

References 58 publications

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“…The gravity model has been widely used in the field of trade performance (Abbas et al, 2015; Abdullahi, Huo et al, 2021). Apart from the basic variables (GDP and distance) (Abdullahi, Shahriar et al, 2021; Abdullahi et al, 2022), this study also includes additional variables such as trade agreements, exchange rates, language, and common borders.…”

Section: Methodsmentioning

confidence: 99%

Factors Affecting Textiles Products Exports of Major Producers: A Gravity Model Approach

Chen,

Ahmad,

Jiang

et al. 2023

Sage Open

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This study employed the gravity model approach to explore the predictors of textile product exports of the top 10 major textile producers. A specific dataset was generated and used to estimate the effects of 14 textile commodities selected in specific countries using Poisson regression and panel data from 1990 to 2021. The 10 major textile export countries hold significance in the global industry, providing comprehensive insights into export factors. Their diverse representation aids in understanding the challenges faced by exporters across continents. These countries possess substantial export markets and showcase various strategies and trade policies. Reliable data availability enables accurate analysis of factors affecting textile exports. Studying these countries enhances export performance and informs global industry strategies. Estimated results indicate that the real exchange rate, real GDP of the reporting country, preferential trade agreements, and the common border are significant positive predictors for textile exports of all commodities. The results further show that distance, average weighted tariff, and language have negative effects on the textile exports of all selected commodities. The transportation cost, measured by distance, is a barrier to textile commodity exports. The findings highlight the significant factors influencing textile exports and provide insights for exporters, policymakers, and researchers in the industry. Notably, this study addresses the challenges encountered by textile product export companies. These challenges include trade barriers, regulatory compliance, fluctuating exchange rates, intense competition, rising production costs, and market access barriers. By analyzing these challenges within the gravity model framework, the study aims to offer comprehensive insights into the complexities faced by textile exporters and their impact on the industry. The outcome of this study will be beneficial for the world’s major textile producers in setting their export targets and strategies to promote textile and cotton exports. The study suggests that the major exporters should benefit from moving exports to rich markets, which are situated at a nearby distance. The results of this study can be valuable for exporters in setting export targets, devising strategies, and formulating trade policies to overcome these challenges and enhance the competitiveness of the textile industry. The corresponding practical implications include the need to strategically manage exchange rates, focus on promoting exports to rich economies, reduce transportation costs, leverage preferential trade agreements, manage average weighted tariffs, address language barriers, and develop strategic export objectives and strategies. This research offers valuable insights for policymakers and society regarding factors influencing textile exports by major producers. Policymakers can utilize this information to inform trade regulations, exchange rate management, and the promotion of preferential trade agreements, enhancing export competitiveness and fostering sustainable practices. The research promotes international cooperation by encouraging collaboration and the sharing of best practices among reporting and partner countries. The findings contribute to economic growth, job creation, and improved standards of living, benefiting society as a whole.

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Section: Methodsmentioning

confidence: 99%

Factors Affecting Textiles Products Exports of Major Producers: A Gravity Model Approach

Chen,

Ahmad,

Jiang

et al. 2023

Sage Open

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“…The stochastic frontier gravity model is applied on a dataset including 35 countries during 2009–2017 by [ 33 ], the results indicated that the trade resistance of China’s export to countries along the Belt and Road has increased over time, while there is still huge trade potential at various industries. [ 34 ] provided 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 on a gravity model. [ 35 ] aimed to examine the key determinants and efficiency of China’s agricultural exports with its 114 importing countries by applying the Stochastic Frontier Analysis on an augmented gravity model for the period of 2000–2019.…”

Section: Literature Reviewmentioning

confidence: 99%

Bilateral trade potential analysis of the Lanzhou-Kathmandu South Asian rail-road freight trains linking China and Nepal: A stochastic frontier gravity model approach

Tian

2024

PLoS ONE

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In this paper, the stochastic frontier gravity model is applied to analyze the trade potential between China and Nepal and the prospects of Lanzhou-Kathmandu South Asian rail-road freight trains (LKSARFT). Based on the statistical data, we test the Exports Efficiency (EE), Bilateral Trade Efficiency (BTE), Exports Trade Potential (ETP), Bilateral Trade Potential (BTP), Extended Exports Trade Potential (EETP), Extended Bilateral Trade Potential (EBTP), Improved Exports Trade Potential (IETP) and Improved Bilateral Trade Potential (IBTP) between China and Nepal, the following analysis results can be found: for the bilateral trade model, the bilateral non-efficiency factor decreasing at a rate of 0.057 with time increasing, bilateral trade increasing at a rate of 0.057 with time increasing. For the exports model, the exports non-efficiency factor increasing at a rate of 0.004 with time increasing, exports trade decreasing at a rate of 0.057 with time increasing. The BTE between China and Nepal increases when time changes, the EE from China to Nepal remains constant changing during the 18 years. The changing range of BTE is 0.002–0.05; the changing range of EE from China to Nepal is over 0.1, larger than the BTE. The BTE and EE ranking among the eight South Asian countries are ranking fifth and fourth during the 18 years. exports trade resistance from China to Nepal is larger than bilateral trade resistance; The import trade potential from Nepal to China is huge, the focus of bilateral trade between China and Nepal may be changed, there are more goods may be exported from Nepal to China, and China may become trade deficit when trading with Nepal. Then, the development bottlenecks of the LKSARFT are analyzed. Finally, we give policy directions to boost bilateral trade efficiency and tap the potential of bilateral trade between China and Nepal.

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“…Their findings as obtained from the extended gravity model and SFA revealed GDP, exchange rate and new member states negatively affect agri-food exports to EU countries. Similarly [ 1 ], report that economic size (GDP), ECOWAS membership, EU membership, importers’ population, and contiguity promote agri-food exports to 70 of Nigeria’s major trading partners. Border countries and larger economies have been found to remain the potential markets for Nigeria’s agri-food exports.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of exports performance: Evidence from Indonesian low-, medium-, and high-technology manufacturing industries

Handoyo,

Ibrahim,

Rahmawati

et al. 2024

PLoS ONE

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This study explores the determinants of the export performance of Indonesia’s low-, medium-, and high-technology manufacturing industries by focusing on the role of raw-material imports and technical efficiency. Micro firm-level data from 2010–2015 were utilized for the analysis in this study. The stochastic frontier analysis was employed to measure technical inefficiency and to determine its effect on export performance. Our findings indicate that in all categories of industry technical efficiency, raw materials imports, foreign direct investment (FDI), location, firm size, labour productivity, and concentration of industries were significant determinants of export performance. While high efficiency increases exports in low- and medium-technology firms, exports decrease in firms with high efficiency accompanied by high imports, FDI, size, and labour productivity. Furthermore, in high-technology industries, efficiency reduces exports and again increases them when mediated by a concentration of industries and location. The empirical strategy also supports the positive effect of imports on export performance in both industries, which also aligns with decreased exports in firms with high imports accompanied by high FDI, efficiency, labour productivity, the concentration of industries, and size. To this end, the study has implications for low-, medium-, and high-technology manufacturing that are mainly concerned with increasing exports.

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Determinants and Potential of Agri-Food Trade Using the Stochastic Frontier Gravity Model: Empirical Evidence From Nigeria

Cited by 23 publications

References 58 publications

Factors Affecting Textiles Products Exports of Major Producers: A Gravity Model Approach

Factors Affecting Textiles Products Exports of Major Producers: A Gravity Model Approach

Bilateral trade potential analysis of the Lanzhou-Kathmandu South Asian rail-road freight trains linking China and Nepal: A stochastic frontier gravity model approach

Determinants of exports performance: Evidence from Indonesian low-, medium-, and high-technology manufacturing industries

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