Evaluating the Impact of Geographic Concentration on Nepalese Agricultural Export

Sujan Piya, Akira Kiminami and Hironori Yagi
Additional contact information
Sujan Piya: Sujan Piya is with the Graduate School of Agricultural and Life Sciences, The University of Tokyo, 1-1-1 Yayoi, Bunkyo-ku, Tokyo 113-8657, Japan. Email: psujan1199@yahoo.com
Akira Kiminami: Akira Kiminami is a Professor in the Graduate School of Agricultural and Life Sciences, The University of Tokyo, Japan. Email: akira@mail.ecc.u-tokyo.ac.jp
Hironori Yagi: Hironori Yagi is an Associate Professor in the Graduate School of Agricultural and Life Sciences, The University of Tokyo, Japan. Email: ayouken@mail.ecc.u-tokyo.ac.jp

South Asia Economic Journal, 2010, vol. 11, issue 2, 207-222

Abstract: This study observed and analyzed the behaviour of Nepalese agricultural export using vector error correction model (VECM). The first part of the analysis focused on the dynamic relationship among agricultural export, geographic concentration and total agricultural production. Results of the study revealed that Nepalese agricultural export was very much dependent on the Indian markets and had positive relation with the geographic concentration index in the long run. The significant and higher error correction term indicated that the short-run fluctuations in geographic concentration and agricultural production were promptly adjusted to its long-run trend. The long-run effect of agricultural production increment on export was positive. The second part of the analysis focused on the export of niche products. The analysis in vector auto regression (VAR) form indicated that the relationship between export of niche products and geographic concentration was insignificant. Granger causality test revealed that the production granger causes export and export granger causes geographic concentration.

Keywords: Trade Diversification; Export Concentration; VECM Estimation; JEL: F15; JEL: Q17 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:sae:soueco:v:11:y:2010:i:2:p:207-222

DOI: 10.1177/139156141001100203

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