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Determinants of the intra-industry trade in cereal and miscellaneous edible preparations: the evidence for Nigeria and the ECOWAS partners

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  • Godwin Odo ONOGWU

    (Department of Agricultural Economics and Extension; Federal University, Wukari, Taraba State, Nigeria)

Abstract

The trade liberalization processes of the Economic Community of West African States (ECOWAS) are implemented through such interventions like free international trade, common external tariff wall, the consolidation or freezing of custom duties and non-tariff barriers to the intra-trade among others. However, the extent to which these efforts have translated to the intra-industry trade in the prepared foodstuff products has not been investigated yet. The objectives of this study are to assess the intra-industry trade theory in cereal and miscellaneous edible preparations; to evaluate the growth rates of simultaneous exports and imports in these prepared foodstuff sub-sections; to evaluate the extent of the intra-industry trade in the sub sections, and to determine the effects of the Nigeria's and partners' characteristics on the intra-industry trade. The results revealed that the intra-industry trade in cereal preparations are positively and significantly influenced by the partners' gross national income (GNI) per capita and the partners' foreign direct investment (FDI), but they are negatively influenced by the Nigeria's household final consumption expenditure. Also, the intra-industry trade in miscellaneous edible preparations is influenced positively by the partners' GNI per capita and the partners' households' final consumption expenditures, while the Nigeria's foreign direct investment and the value added by manufacturing negatively influence the intra-industry trade in the product sub-sections within the ECOWAS sub-region. Both exports and imports growth rates of these products fluctuate, but more in the imports of miscellaneous edible preparations. Cost saving options in transportation, the use of efficient machines during the production, processing and packaging are recommended.

Suggested Citation

  • Godwin Odo ONOGWU, 2014. "Determinants of the intra-industry trade in cereal and miscellaneous edible preparations: the evidence for Nigeria and the ECOWAS partners," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(1), pages 21-30.
    • Handle: RePEc:caa:jnlage:v:60:y:2014:i:1:id:18-2013-agricecon
    DOI: 10.17221/18/2013-AGRICECON
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    References listed on IDEAS

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    1. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
    2. Balassa, Bela & Bauwens, Luc, 1987. "Intra-industry Specialisation in a Multi-country and Multi-industry Framework," Economic Journal, Royal Economic Society, vol. 97(388), pages 923-939, December.
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    Cited by:

    1. Nazir Muhammad Abdullahi & Olufemi Adewale Aluko & Xuexi Huo, 2021. "Determinants, efficiency and potential of agri-food exports from Nigeria to the EU: Evidence from the stochastic frontier gravity model," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(8), pages 337-349.
    2. Jeremiás Máté Balogh & Nuno Carlos Leitão, 2019. "A gravity approach of agricultural trade: The nexus of the EU and African, Caribbean and Pacific countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(11), pages 509-519.
    3. Karolina Pawlak & Joanna Lukasiewicz, 2022. "Does intra-industry specialisation enhance or limit comparative advantage? Evidence from the world citrus fruit trade," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(9), pages 338-347.

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