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Relative export competitiveness of the Nigerian cocoa industry

Nazir Muhammad Abdullahi (College of Economics and Management, Northwest Agriculture and Forestry University, Yangling, China and Department of Home and Rural Economics, Kano State Polytechnic, Kano, Nigeria)
Qiangqiang Zhang (College of Economics and Management, Northwest Agriculture and Forestry University, Yangling, China)
Saleh Shahriar (School of Humanities and Social Sciences, North South University, Dhaka, Bangladesh)
Sokvibol Kea (College of Economics and Management, Northwest Agriculture and Forestry University, Yangling, China)
Xuexi Huo (College of Economics and Management, Northwest Agriculture and Forestry University, Yangling, China)

Competitiveness Review

ISSN: 1059-5422

Article publication date: 9 September 2021

Issue publication date: 16 November 2022

479

Abstract

Purpose

This paper aims to derive the time-varying relative export competitiveness (REC) of the Nigerian cocoa sector against Nigeria’s share of world agricultural exports (REC_WA) and world merchandise exports (REC_WM) from 1995 to 2018. By concentrating on different factors such as demand and supply capacity, price factors and exchange rate, the authors examine the determinants of REC.

Design/methodology/approach

The authors calculated three different REC indexes. The authors also developed the relative symmetric export competitiveness index for comparative advantage calculation and avoiding the possible bias. The determinants of REC for Nigerian cocoa were captured using the short-run regression (SRR) model.

Findings

The study showed that Nigeria’s cocoa exports are still competitive despite experiencing some declining stages. Based on the SRR model, higher per capita income had a positive effect on the REC, while higher domestic prices significantly reduced the REC of cocoa. Further, the African Growth Opportunity Act agreement adversely affected the REC of cocoa.

Originality/value

This study provides a foundation for future research and enhances the literature on agricultural trade. This research makes a few contributions both from a scientific and a policy perspective. First, it is the first study on the REC analysis for the Nigerian cocoa industry. Second, a wide range of comparisons of REC among the world’s largest cocoa exporters was provided following implications of the various economic policies and local policy strategies. Third, the latest 24-year data sets were covered.

Keywords

Acknowledgements

The authors are grateful to the anonymous reviewers and the Editor-in-Chief for their constructive comments on the earlier draft of the paper.

Funding: This study was funded by the earmarked fund of China Agriculture Research System (No. CARS-28).

Citation

Abdullahi, N.M., Zhang, Q., Shahriar, S., Kea, S. and Huo, X. (2022), "Relative export competitiveness of the Nigerian cocoa industry", Competitiveness Review, Vol. 32 No. 6, pp. 1025-1046. https://doi.org/10.1108/CR-03-2021-0036

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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