IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v67y2021i8id15-2021-agricecon.html
   My bibliography  Save this article

Determinants, efficiency and potential of agri-food exports from Nigeria to the EU: Evidence from the stochastic frontier gravity model

Author

Listed:
  • Nazir Muhammad Abdullahi

    (College of Economics and Management, Northwest A&F University, Shaanxi, China
    Department of Business Administration and Entrepreneurship Development, School of Rural Technology and Entrepreneurship Development, Kano State Polytechnic, Kano, Nigeria)

  • Olufemi Adewale Aluko

    (Department of Finance, Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria)

  • Xuexi Huo

    (College of Economics and Management, Northwest A&F University, Shaanxi, China)

Abstract

This study uses an extended gravity model to examine the determinants, efficiency and potential of agri-food exports from Nigeria to the EU for the 1995-2019 period. It uses a stochastic frontier analysis (SFA) to estimate the extended gravity model. The results show that the economic size (GDP) of Nigeria and the EU countries, as well as bilateral distance, positively determine agri-food exports from Nigeria to the EU. Also, the results show that Nigeria's agri-food exports to the EU are negatively determined by the income (per capita GDP) of Nigeria and its EU trading countries, bilateral exchange rate and EU new member states (NMS). The results further show that Nigeria scores relatively low in terms of the efficiency of its agri-food exports to the EU countries. On a final note, the study shows that Nigeria's agri-food exports with the EU have a relatively large potential that has not been exploited. We document policy recommendations in this study.

Suggested Citation

  • 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.
    • Handle: RePEc:caa:jnlage:v:67:y:2021:i:8:id:15-2021-agricecon
    DOI: 10.17221/15/2021-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/15/2021-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/15/2021-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/15/2021-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Geetha Ravishankar & Marie M. Stack, 2014. "The Gravity Model and Trade Efficiency: A Stochastic Frontier Analysis of Eastern European Countries' Potential Trade," The World Economy, Wiley Blackwell, vol. 37(5), pages 690-704, May.
    3. 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.
    4. Nkenchor Neville Igue & Toyin Segun Ogunleye, 2014. "Impact of Real Exchange Rate on Trade Balance in Nigeria," African Development Review, African Development Bank, vol. 26(2), pages 347-358, June.
    5. Sokvibol Kea & Hua Li & Saleh Shahriar & Nazir Muhammad Abdullahi & Samnang Phoak & Tharo Touch, 2019. "Factors Influencing Cambodian Rice Exports: An Application of the Dynamic Panel Gravity Model," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(15), pages 3631-3652, December.
    6. Ding Chen & Umar Muhammad Gummi & Shan-Bing Lu & Asiya Mu'azu, 2020. "Modelling the impact of oil price fluctuations on food price in high and low-income oil exporting countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(10), pages 458-468.
    7. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    8. Evans S. Osabuohien & Uchenna R. Efobi & John T. Odebiyi & Oluyemi O. Fayomi & Adeleke O. Salami, 2019. "Bilateral Trade Performance in West Africa: A Gravity Model Estimation," African Development Review, African Development Bank, vol. 31(1), pages 1-14, March.
    9. J. Sebastián Castillo & Emiliano C. Villanueva & M. Carmen García‐Cortijo, 2016. "The International Wine Trade and Its New Export Dynamics (1988–2012): A Gravity Model Approach," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 466-481, November.
    10. Ivo Zdráhal & Nahanga Verter & Barbora Daňková & Jan Kuchtík, 2019. "Products Mapping' and Agri-Food Trade between Nigeria and ECOWAS Member Countries," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(5), pages 1379-1392.
    11. M. Ševela, 2002. "Gravity-type model of Czech agricultural export," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 48(10), pages 463-466.
    12. Sapa, Agnieszka & Droždz, Jolanta, 2019. "Polish Agri-Food Trade With Non-Eu Countries – A Gravity Model Analysis," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2019(4).
    13. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
    14. Edmond Noubissi & Henri Njangang, 2020. "The impact of terrorism on agriculture in African countries," African Development Review, African Development Bank, vol. 32(4), pages 730-743, December.
    15. Federico Belotti & Silvio Daidone & Giuseppe Ilardi & Vincenzo Atella, 2013. "Stochastic frontier analysis using Stata," Stata Journal, StataCorp LP, vol. 13(4), pages 718-758, December.
    16. Nahanga Verter & Věra Bečvářová, 2016. "The Impact of Agricultural Exports on Economic Growth in Nigeria," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(2), pages 691-700.
    17. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    18. Changkyu Choi, 2002. "Linder hypothesis revisited," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 601-605.
    19. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nazir Muhammad Abdullahi & Xuexi Huo & Qiangqiang Zhang & Aminah Bolanle Azeez, 2021. "Determinants and Potential of Agri-Food Trade Using the Stochastic Frontier Gravity Model: Empirical Evidence From Nigeria," SAGE Open, , vol. 11(4), pages 21582440211, December.
    2. Sabrina Auci & Laura Castellucci & Manuela Coromaldi, 2021. "How does public spending affect technical efficiency? Some evidence from 15 European countries," Bulletin of Economic Research, Wiley Blackwell, vol. 73(1), pages 108-130, January.
    3. Keller, Michael, 2020. "Wasted windfalls: Inefficiencies in health care spending in oil rich countries," Resources Policy, Elsevier, vol. 66(C).
    4. Ceyhun Elgin & Selman Çakır, 2015. "Technological progress and scientific indicators: a panel data analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(3), pages 263-281, April.
    5. Michael Tutu Boadu & Camara Kwasi Obeng & Isaac Dasmani & William Gabriel Brafu‐Insaidoo, 2021. "Assessing Ghana's bilateral exports potential and gap," African Development Review, African Development Bank, vol. 33(4), pages 634-647, December.
    6. Luis Antonio Galiano Bastarrica & Eva M. Buitrago Esquinas & María Ángeles Caraballo Pou & Rocío Yñiguez Ovando, 2023. "Environmental adjustment of the EU27 GDP: an econometric quantitative model," Environment Systems and Decisions, Springer, vol. 43(1), pages 115-128, March.
    7. Zarkovic, Maja, 2020. "Cap-and-trade and produce at least cost? Investigating firm behaviour in the EU ETS," Working papers 2020/12, Faculty of Business and Economics - University of Basel.
    8. Jan Kluge & Sarah Lappöhn & Kerstin Plank, 2023. "Predictors of TFP growth in European countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 109-140, February.
    9. Rosen Azad Chowdhury & Dilshad Jahan & Tapas Mishra & Mamata Parhi, 2023. "A Quality Dimension? A Re-appraisal of Financial Development and Economic Growth Nexus in a Quality-Quantity Setting," Working Papers 2023-02, Swansea University, School of Management.
    10. Carlos Pestana Barros & Zhongfei Chen & Peter Wanke, 2016. "Efficiency in Chinese seaports: 2002–2012," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 295-316, September.
    11. Gangopadhyay, Partha & Jain, Siddharth & Bakry, Walid, 2022. "In search of a rational foundation for the massive IT boom in the Australian banking industry: Can the IT boom really drive relationship banking?," International Review of Financial Analysis, Elsevier, vol. 82(C).
    12. Cazals Catherine & Dudley Paul & Florens Jean-Pierre & Jones Michael, 2011. "The Effect of Unobserved Heterogeneity in Stochastic Frontier Estimation: Comparison of Cross Section and Panel with Simulated Data for the Postal Sector," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-22, September.
    13. Forgione, Antonio Fabio & Migliardo, Carlo, 2023. "Mafia risk perception: Evaluating the effect of organized crime on firm technical efficiency and investment proclivity," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    14. Farsi, Mehdi & Filippini, Massimo, 2009. "An analysis of cost efficiency in Swiss multi-utilities," Energy Economics, Elsevier, vol. 31(2), pages 306-315, March.
    15. Zhang, Qizheng & Qian, Zesen & Wang, Shuo & Yuan, Lingran & Gong, Binlei, 2022. "Productivity drain or productivity gain? The effect of new technology adoption in the oilfield market," Energy Economics, Elsevier, vol. 108(C).
    16. Federico Belotti & Giuseppe Ilardi & Andrea Piano Mortari, 2019. "Estimation of Stochastic Frontier Panel Data Models with Spatial Inefficiency," CEIS Research Paper 459, Tor Vergata University, CEIS, revised 30 May 2019.
    17. Emilie Caldeira & Alou Adessé Dama & Ali Compaoré & Mario Mansour & Grégoire Rota-Graziosi, 2020. "Tax effort in Sub-Saharan African countries : evidence from a new dataset," Working Papers hal-02543162, HAL.
    18. Glass, Anthony J. & Kenjegalieva, Karligash & Sickles, Robin C. & Weyman-Jones, Thomas, 2018. "The Spatial Efficiency Multiplier and Common Correlated Effects in a Spatial Autoregressive Stochastic Frontier Model," Working Papers 18-003, Rice University, Department of Economics.
    19. Cristian Barra & Nazzareno Ruggiero, 2022. "How do dimensions of institutional quality improve Italian regional innovation system efficiency? The Knowledge production function using SFA," Journal of Evolutionary Economics, Springer, vol. 32(2), pages 591-642, April.
    20. Dorn, Florian, 2023. "Elections and Government Efficiency," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277700, Verein für Socialpolitik / German Economic Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:67:y:2021:i:8:id:15-2021-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.