scholarly journals Determinants and Potential of Agri-Food Trade Using the Stochastic Frontier Gravity Model: Empirical Evidence From Nigeria

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110657
Author(s):  
Nazir Muhammad Abdullahi ◽  
Xuexi Huo ◽  
Qiangqiang Zhang ◽  
Aminah Bolanle Azeez
Keyword(s):  
Gravity Model ◽  
Fixed Effects ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Least Square ◽  
Trade Expansion ◽  
Frontier Analysis ◽  
Food Trade ◽  
The Face ◽  
The Usa

Considering the importance of agri-food exports for Nigeria in the face of dwindling revenue from its oil exports. Therefore, this study provides empirical insights on the determinants and potential of agri-food exports from Nigeria to 70 major trading countries between 1995 and 2019 by applying a Stochastic Frontier Analysis (SFA) on a gravity model. We also estimate a variety of techniques, including the fixed effects, Ordinary Least Square (OLS), Pseudo Poisson Maximum Likelihood (PPML), and Heckman models to confirm the robustness of our results. We show that the economic size (GDP) of Nigeria and its trading countries, importers’ population, EU membership, ECOWAS membership and contiguity stimulate agri-food export. Also, we show that bilateral distance, domestic population, exchange rate, language, and landlocked adversely affect agri-food exports. The potential for agri-food trade expansion exists with mostly world biggest economies (including China, the USA, Brazil, India, Russia, Japan, and EU countries) and Nigeria’s border countries. Policy directions for agri-food export expansion are provided.

scholarly journals TECHNICAL EFFICIENCY ANALYSIS IN INDONESIAN FISHERY PROCESSING INDUSTRY: A CASE OF FISHERY CANNED PRODUCT FIRMS

2019 ◽  
Vol 9 (1) ◽  
pp. 53
Author(s):  
Munawar Asikin ◽  
Arief Daryanto ◽  
Machfud . ◽  
Subagio Dwijosumono
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Analysis ◽  
Least Square ◽  
Time Varying ◽  
Efficient Manner ◽  
Processing Industry ◽  
Frontier Analysis ◽  
Ordinary Least Square

This study aims to analyze technical efficiency and evaluate the effect of some sources of inefficiency in the Indonesian fishery canned firms during the period of 1990-2015. We calculate technical efficiency using the Stochastic Frontier Analysis (SFA) method with Time Varying Decay. The average of technical efficiency in this industry during the period of 1990-2015 was only 57%. It indicates that firms in this industry still encounter a problem in allocating the resources in efficient manner.  However, during the period of 1994-2015, the efficiency in the Indonesian fishery canned industry has declined. We also employed the Ordinary Least Square (OLS) method to evaluate the sources of inefficiency. The results showed that eight variables affected to the efficiency in this industry, thereby it will reduce fishery product competitiveness in the future

ASEAN FREE TRADE AGREEMENT IMPLEMENTATION FOR INDONESIAN TRADING PERFORMANCE: A GRAVITY MODEL APPROACH

2014 ◽  
Vol 8 (1) ◽  
pp. 73-92 ◽  
Author(s):  
Yuventus Effendi
Keyword(s):  
Gravity Model ◽  
Stochastic Frontier Analysis ◽  
Export Performance ◽  
Stochastic Frontier ◽  
Trade Agreement ◽  
Optimal Level ◽  
Frontier Analysis ◽  
Population Exchange ◽  
Asean Countries ◽  
Model Approach

Salah satu tujuan dari pelaksanaan AFTA adalah untuk mengurangi hambatan perdagangan dengan mengurangi tarif impor antar anggota ASEAN dengan asumsi bahwa jika tarif lebih rendah atau nol, seharusnya terdapat peningkatan nilai perdagangan antara anggota ASEAN. Penelitian ini menguji apakah pelaksanaan AFTA memiliki dampak pada kinerja ekspor Indonesia dan kontribusi kendala di belakang perbatasan (behind the border constraints) terhadap kinerja ekspor Indonesia seperti administrasi bea dan cukai. Penelitian ini menggunakan pendekatan model gravitasi dengan analisis stochastic frontier yang berbeda dari penelitian-penelitian sebelumnya tentang kinerja perdagangan Indonesia yang menggunakan estimasi OLS. Hasil penelitian menunjukkan bahwa, secara empiris, GDP , jarak, populasi, nilai tukar, tarif, dan keanggotaan di ASEAN signifikan mempengaruhi perdagangan Indonesia dengan negara partner. Lebih lanjut, hasil estimasi stochastic frontier menunjukkan bahwa kendala di belakang perbatasan menurun setiap tahunnya. Namun, ekspor Indonesia masih under trade dengan semua negara ASEAN yang mengindikasikan rendahnya pemanfaatan AFTA. Di sisi lain, ekspor Indonesia over trade dengan Cina dan hampir berada di tingkat yang optimal dengan Amerika Serikat, Jepang, dan Belanda. Implikasi dari penelitian ini adalah bahwa pemerintah Indonesia harus mempromosikan lebih banyak ekspor dengan negara-negara ASEAN untuk mencapai tujuan dari deklarasi AFTA dua dekade lalu. One objective of the AFTA implementation is to reduce trading constraints by reducing import tariffs among ASEAN’s members with the assumption that if tariffs are lower or zero, there should be an increase in intra-trading value among ASEAN members. This study examines whether the implementation of the AFTA has had any impact on Indonesia’s export performance and ‘behind the border’ constraints contribution in Indonesia’s exports such as customs administrations. The study uses the gravity model approach with a stochastic frontier analysis which is different from previous research about Indonesia’s trading performance that uses OLS estimation. The results show that, empirically, GDP, distance, population, exchange rate, and membership in ASEAN significantly affect Indonesia’s trading with partner country. Furthermore, stochastic frontier analysis’ results show that ‘behind the border’ constraints decrease overtime. However, Indonesia’s exports is under trade with all ASEAN countries which indicates the low utilisation of AFTA. On the other hand, Indonesia’s exports are over trade with China and almost at optimal level of exports with the US, Japan, and the Netherlands. The implication of this study is that the Indonesian government should promote more exports with ASEAN countries to accomplish the objectives of the AFTA declaration two decades ago.

U.S. highway public private partnerships

2014 ◽  
Vol 40 (11) ◽  
pp. 1131-1151 ◽  
Author(s):  
Nobuhiko Daito ◽  
Jonathan L. Gifford
Keyword(s):  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Public Private Partnerships ◽  
Highway Projects ◽  
Content Type ◽  
Frontier Analysis ◽  
Cost Differential ◽  
Significant Difference ◽  
The Usa ◽  
The Difference

Purpose – The use of public-private partnerships (P3s) for infrastructure delivery, particularly for highway projects, has been increasing in the USA. The purpose of this paper is to empirically evaluate the difference of P3s and non-P3 highway projects, in terms of their costs and efficiency. Design/methodology/approach – An empirical model of highway construction costs was estimated using a linear regression model that explicitly accounts for the cost differential between the contracts. The differences between efficiencies was also evaluated through a two-stage analysis, where projects’-specific technical efficiencies were first estimated using stochastic frontier analysis and data envelopment analysis, and then the difference in technical efficiencies between the two groups were evaluated through non-parametric tests of means. Findings – Controlling for various project characteristics, the P3 highway projects in the USA showed higher initial costs than non-P3 projects. However, the efficiency scores showed no significant difference between the two groups. This inconsistency between initial costs and technical efficiency scores suggests the complexity involved in P3 projects, which are not captured in the efficiency analysis. Research limitations/implications – Limited availability of P3 project data due to their immaturity (in cases of P3 projects that include operation and management) and their complex engineering specifications may have caused biased results. Importantly, the study analyzed project costs as of financial close; post-financial close variations, such as change orders during construction, cost/schedule overruns, and renegotiation of contract terms, are beyond the scope of the analysis in this study. Originality/value – The present study contributes to the literature as one of the earliest empirical analyses of the performance of highway P3s in the USA. Also, this is one of the first studies to employ frontier analysis methods that focus on the efficiency of highway project delivery.

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

2021 ◽  
Vol 67 (No. 8) ◽  
pp. 337-349
Author(s):  
Nazir Muhammad Abdullahi ◽  
Olufemi Adewale Aluko ◽  
Xuexi Huo
Keyword(s):  
Gravity Model ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Policy Recommendations ◽  
Frontier Analysis ◽  
Eu Countries ◽  
Extended Gravity ◽  
Economic Size ◽  
Eu New Member States ◽  
The Eu

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.

scholarly journals A stochastic frontier and corrected Ordinary Least Square models of determining technical efficiency of canal irrigated paddy farms in Tamil Nadu

2017 ◽  
Vol 9 (2) ◽  
pp. 658-662
Author(s):  
R. Vasanthi ◽  
B. Sivasankari ◽  
J. Gitanjali
Keyword(s):  
Comparative Study ◽  
Technical Efficiency ◽  
Production Function ◽  
Tamil Nadu ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Least Square ◽  
Qualitative Variable ◽  
Frontier Analysis ◽  
Ordinary Least Square

A comparative study between Stochastic frontier production function and corrected Ordinary Least Square (OLS) were estimated to determine technical efficiency in paddy production. Further, the study has assessed the effect of farm specific socio economic factors affecting the technical efficiency. This study was conducted in Cauvery delta zone of seven taluks about canal irrigation. The number of farmers in canal irrigated region about 109 from seven taluks is considered. The data were obtained from the cost of cultivation scheme of Tamil Nadu centre. The results of Cobb Douglas stochastic production function indicated that fertilizer, seed, pesticide and machine hours significantly influenced yield of paddy. The results also indicated that it will be highly profitable to increase the use of seed, and need to rationalize the labour use and pesticide usage. The effect of qualitative variable namely age and education of the farmer would indicate that the older farmers technical efficiency become less compared to the younger farmer, and also implying that investments on human capital take away their participation from agriculture. As a comparative study in general, COLS produced the lowest mean technical efficiency with 85 percent while the Stochastic frontier analysis produced the highest mean technical efficiency with 90 per cent.

Bachelor's Degree Productivity X-Inefficiency: The Role of State Higher Education Policy

2009 ◽  
Vol 11 (1) ◽  
pp. 7-32 ◽  
Author(s):  
Marvin A. Titus
Keyword(s):  
Higher Education ◽  
Education Policy ◽  
Higher Education Policy ◽  
Fixed Effects ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Bachelor's Degree ◽  
Frontier Analysis ◽  
Degree Production ◽  
State Higher Education

Using stochastic frontier analysis and dynamic fixed-effects panel modeling, this study examines how changes in the x-inefficiency of bachelor's degree production are influenced by changes in state higher education policy. The findings from this research show that increases in need-based state financial aid help to mitigate the convergence among states in x-inefficiency with regard to bachelor's degree production.

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