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 Factors Influencing Technical Efficiency in the EU Dairy Farms

Agriculture ◽  
2021 ◽  
Vol 11 (11) ◽  
pp. 1114
Author(s):  
Zdeňka Náglová ◽  
Tamara Rudinskaya
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Dairy Farms ◽  
P Value ◽  
Maximum Output ◽  
Frontier Analysis ◽  
Size Standard ◽  
Economic Size ◽  
The Eu

This paper aims to analyse the technical efficiency (TE) of dairy farms and find its determinants. To accomplish this problem, the Stochastic Frontier Analysis was applied. The data were obtained from the Farm Accountancy Data Network database for dairy farms (TF15-45—Specialist dairying) for 2004–2019. Dairy farms were divided into four clusters according to their physical size (number of livestock units per farm) and economic size (standard output per farm). The largest farms by physical and economic size are located in Denmark and Cyprus. The smallest, in comparison, are in Bulgaria, Croatia, Latvia, Lithuania, Austria, Poland, Romania, and Slovenia. Farms in the EU are relatively technically efficient, i.e., they use their resources efficiently to produce maximum output (production). However, they have the potential to achieve better economic results and be more competitive, as the size of farms’ is not fully optimised. The abolition of the milk quota can be considered a factor in improving technical efficiency, as the indicator is higher after the abolition. New and old member states have almost comparable technical efficiency levels (the p-value of the t-test is 0.463), with old members having slightly higher level TE. Subsidies have contradictory effects on TE. Farm efficiency with higher subsidies per cow is higher for farms with €51–100/cow. However, as subsidies increase, TE decreases. Only the group of farms with the highest subsidies has a higher TE. More diversified farms are more technically efficient than specialised farms. Milk yield did not influence the analysed indicator. The analysis results can serve the stakeholders as a tool for modelling future agricultural policy, as the European farms are very heterogenous and show different conditions and economic outcomes.

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.

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 Dairy farms efficiency analysis before the quota system abolishment

2014 ◽  
Vol 8 (2-3) ◽  
pp. 147-157
Author(s):  
Krisztián Kovács
Keyword(s):  
The Netherlands ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Dairy Farms ◽  
Multidimensional Space ◽  
Quota System ◽  
High Increase ◽  
Frontier Analysis ◽  
The Eu

The abolishment of the dairy quota system in the EU is expected to increase competition across dairy farms in Europe. Assuming a common price for milk in the EU, only the most efficient farms will survive in the new environment. The main objective of the research is to compare dairy farms in Germany, The Netherlands and Hungary about their technical efficiency. In the first part of the research, the efficiency is measured by partial efficiency indexes using one dimensional efficiency measuring. In the second part, the Stochastic Frontier Analysis (SFA) have to be used to measure efficiency in a multidimensional space, using six inputs and two outputs. It appears from the results that the highest efficiency farms are in the Netherlands, and then Germany and Hungary follow thus, we get that the most efficient farms are in the Netherlands with 84% efficient. The German farms are 76% efficient. The Hungarian farms are 68% efficient. With respect the abolishment of the dairy quota system, our results suggest that the Dutch farms are the most efficient, thus probably they will increase their production after the quota system. But because the size of the country we cannot expect dramatic changes in the European Dairy market. The Germans farms efficiency is lower, but their efficiency is also lower, so we won’t expect high increase about the dairy supply. The Hungarian dairy sector is not so efficient like the Dutch, and the size of the sector has also small among the European countries, thus if they want to survive the quota system demolishing, they have to increase their technical efficiency.

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