Determinants of South Africa's exports of leather products

Jordaan, Andre Cillie; Eita, Joel Hinaunye

doi:10.1080/03031853.2012.695137

Cited by 7 publications

(6 citation statements)

References 22 publications

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“…In other words, a depreciation of the Nigerian currency (₦) results in a nearly 0.21% increase in cocoa export flows. The result is in line with several prior studies conducted by IRSHAD et al (2018) and JORDAAN & EITA (2012). At the same time, IGUE & OGUNLEYE (2014) proposed that a decrease in the price of the Nigerian currency "Naira" has a positive effect on the trade balance in the long run.…”

Section: Resultssupporting

confidence: 88%

“…Third, the study would enrich the current literature on the commodity-specific gravity model of agricultural exports. Presently, there are some studies on the export determinants of product/agricultural commodities such as coffee (NSABIMANA & TIRKASO, 2019), rice (BUI & CHEN, 2015;KEA et al, 2019), coffee and rice (NGUYEN, 2020), soybeans (BOEREMA et al, 2016), wine (CASTILLO et al, 2016), poultry (ZHOU et al, 2019), meat (SHAHRIAR et al, 2019a, leather and textile (JORDAAN & EITA, 2012;RAHMAN et al, 2019), creative goods (DONG & TRUONG, 2019), and forest products (NASRULLAH et al, 2020). Lastly, this study provided new insights and allowed us to derive some policy implications about the development and sustainability of cocoa export in Nigeria.…”

Section: Abdullahi Et Almentioning

confidence: 99%

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Nigeria’s cocoa exports: a gravity model approach

Abdullahi¹,

Shahriar

Kea

et al. 2021

Cienc. Rural

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What are the major factors affecting Nigeria’s cocoa export flows? In answering this question, the authors suggest a commodity-specific gravity model with three different analytical approaches, (the Heckman Sample Selection Model, the Generalised Least Square, and the Poisson Pseudo Maximum Likelihood), based on a period of 24 years of panel data for Nigeria and it’s 36 importing partners to estimate the models. The results showed that GDP, exchange rate policy, WTO, EU, and colonial link are positively associated with the Nigerian cocoa export flows. Further, the negative impact of the GDP per capita, landlocked, distance, AU, and ECOWAS are observed. The need for the expansion of exports to the trading partners, especially the EU members (Netherlands, Germany, France, United Kingdom, Belgium, Spain, etc.), Canada, Malaysia, and the USA is particularly highlighted. These results are important for the formulation of future trade policy that could boost up the Nigerian cocoa exports. This would eventually contribute to the diversification of the Nigerian exports and also enhance the country’s foreign earnings.

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Section: Resultssupporting

confidence: 88%

Section: Abdullahi Et Almentioning

confidence: 99%

Nigeria’s cocoa exports: a gravity model approach

Abdullahi¹,

Shahriar

Kea

et al. 2021

Cienc. Rural

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“…There are quite a few studies that have assessed trade in agricultural products. Some of these focused on total/aggregate agricultural trade flows (Hatab et al, 2010;Kim et al, 2004), while others dealt with a more disaggregated level (commodity/product-level) of analysis (Gebrelibanos, 2005;Getachew, 2009;Jayasinghe & Sarker, 2008;Jordaan & Eita, 2007;Nguyen & Arcand, 2009). However, coffee as an important agricultural commodity has not been extensively analyzed in the framework of gravity modeling.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of global coffee trade: Do RTAs matter? Gravity model analysis

Abafita

Tadesse

2021

Cogent Economics & Finance

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This study investigates the patterns of global coffee trade flows and identifies the major determinants of global coffee trade by incorporating RTAs as important variable. Gravity modeling with OLS and PPML estimator was employed for the analysis using panel data on bilateral coffee trade flows of 18 major coffee exporters and 201 trading partners for the period 2001-2015. Both exporter GDP (and population) as well as importer GDP were found to be important determinants enhancing coffee trade. Of the bilateral distance variables, physical distance is found to impede coffee trade, while common border was found to enhance it. On the other hand, cultural (distance) variables like colonial link, common colonizer and common language were also found to enhance coffee trade. Other variables that were found to significantly enhance coffee trade include depreciation in exporting country's exchange rate, the amount of arable land in exporting country, infrastructure and global financial crisis. On the other hand, importing country tariff was found to significantly reduce coffee trade as expected. Surprisingly, the RTA variable had no significant impact on coffee bilateral trade.

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“…First, this study would expand the literature on the commodity-specific gravity model of agricultural trade. Numerous studies are present in the literature on leather export's determinants, such as gross domestic product (GDP), foreign direct investments, supply chain issues, trade openness, regulations and policies, market competitiveness, etc., for countries such as Pakistan (Ghafoor, 2015;Ghafoor et al, 2012), Tanzania (Lwesya, 2018), Ethiopia (Lisanework, 2018, South Africa (Jordaan & Eita, 2012) and Bangladesh (Akter, 2019;Hossain et al, 2017;Paul et al, 2013;Razzaque et al, 2018). Table 1 presents a brief survey on the issue of leather trade and leather products.…”

Section: Theoretical and Empirical Literaturementioning

confidence: 99%

Determinants of Bangladesh’s Leather Exports to Its Major Trade Partners: A Panel Gravity Model Approach

Shahriar

Kea

Abdullahi

et al. 2021

Global Business Review

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The purpose of this research is to study the determinants of export, import and overall trade performance. The article employed the panel gravity model along with the analytical approaches of the fixed-effects, random-effects, Poisson Pseudo-Maximum-Likelihood (PPML) and Heckman selection models. This analysis is based on a panel data set from 1989 to 2015 (27 years) for a total of 20 selected largest leather importing partners. The findings are consistent with the Heckscher–Ohlin (H–O) theory, meaning that Bangladesh could chase for the comparative advantage in the leather industry through the effective planning and efficient utilization of its abundant population of 163 million. It is demonstrated that the wealthier nations are likely to trade in the Bangladeshi leather sector. But the key problem in the ways of trade is the presence of high trade and transport costs. Among the major causes of high-trade costs in Bangladesh are the cumbersome and complex cross-border trading practices, which also increase the possibility of corruption. Moreover, the trading of leather products is negatively influenced by the COVID-19. These problems and issues need to be addressed to facilitate Bangladesh’s leather exports. Also, Bangladesh is a founding member of China’s Belt and Road Initiative (BRI). Exporting to Chinese consumer markets and using network connectivity to boost leather trade with other participating countries in the BRI would create a considerable growth potential for Bangladesh. To this end, the issue of technological developments and research innovations could be prioritized. This work provides both industrial and policy directions for future research on trade of leather products by means of an application of the gravity model. There are some methodological innovations of the model. The concluding remarks have generated some insights and lessons that would be useful in the development of leather trade across the world.

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Determinants of South Africa's exports of leather products

Cited by 7 publications

References 22 publications

Nigeria’s cocoa exports: a gravity model approach

Nigeria’s cocoa exports: a gravity model approach

Determinants of global coffee trade: Do RTAs matter? Gravity model analysis

Determinants of Bangladesh’s Leather Exports to Its Major Trade Partners: A Panel Gravity Model Approach

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