Analysis of Some Drivers of Cocoa Export in Nigeria in the Era of Trade Liberalization

N. Verter and V. Bečvářová

AGRIS on-line Papers in Economics and Informatics, 2014, vol. 06, issue 4, 11

Abstract: This contribution analysis some determinants of cocoa export in Nigeria in the era of free trade. Using Johansen cointegration and OLS regression methods, the cointegration results show there exists a long- run equilibrium relationship between cocoa exports and the explanatory variables such as quantity of cocoa production, domestic consumption and the world price in Nigeria. More so, the OLS results provide a positive relationship between cocoa export and world price, trade openness, REER, and quantity of world cocoa export (statistically significant at the 0.01 and 0.05 levels). However, the results show an inverse association between cocoa export and domestic cocoa consumption (statistically significant at 0.01 level). The findings indicate that Nigeria has a comparative advantage in cocoa export. The Nigerian government and partners should create an enabling environment and some incentives to stimulate cocoa producers and traders by subsidizing farm inputs, and providing affordable loans to them to ensure sustainable cocoa production and export in the country.

Keywords: Crop Production/Industries; International Relations/Trade (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://ageconsearch.umn.edu/record/196590/files/a ... ter_%20becvarova.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aolpei:196590

DOI: 10.22004/ag.econ.196590

Access Statistics for this article

More articles in AGRIS on-line Papers in Economics and Informatics from Czech University of Life Sciences Prague, Faculty of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().