Agric. Econ. - Czech, 2014, 60(1):21-30 | DOI: 10.17221/18/2013-AGRICECON

Determinants of the intra-industry trade in cereal and miscellaneous edible preparations: the evidence for Nigeria and the ECOWAS partnersOriginal Paper

Godwin Odo ONOGWU
Department of Agricultural Economics and Extension; Federal University, Wukari, Taraba State, Nigeria

The trade liberalization processes of the Economic Community of West African States (ECOWAS) are implemented through such interventions like free international trade, common external tariff wall, the consolidation or freezing of custom duties and non-tariff barriers to the intra-trade among others. However, the extent to which these efforts have translated to the intra-industry trade in the prepared foodstuff products has not been investigated yet. The objectives of this study are to assess the intra-industry trade theory in cereal and miscellaneous edible preparations; to evaluate the growth rates of simultaneous exports and imports in these prepared foodstuff sub-sections; to evaluate the extent of the intra-industry trade in the sub sections, and to determine the effects of the Nigeria's and partners' characteristics on the intra-industry trade. The results revealed that the intra-industry trade in cereal preparations are positively and significantly influenced by the partners' gross national income (GNI) per capita and the partners' foreign direct investment (FDI), but they are negatively influenced by the Nigeria's household final consumption expenditure. Also, the intra-industry trade in miscellaneous edible preparations is influenced positively by the partners' GNI per capita and the partners' households' final consumption expenditures, while the Nigeria's foreign direct investment and the value added by manufacturing negatively influence the intra-industry trade in the product sub-sections within the ECOWAS sub-region. Both exports and imports growth rates of these products fluctuate, but more in the imports of miscellaneous edible preparations. Cost saving options in transportation, the use of efficient machines during the production, processing and packaging are recommended.

Keywords: ECOWAS, intra-industry trade, prepared foodstuffs, cereal preparations, miscellaneous edible preparations

Published: January 31, 2014  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
ONOGWU GO. Determinants of the intra-industry trade in cereal and miscellaneous edible preparations: the evidence for Nigeria and the ECOWAS partners. Agric. Econ. - Czech. 2014;60(1):21-30. doi: 10.17221/18/2013-AGRICECON.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Agresti A. (1990): Categorical Data Analysis. John Wiley and Sons, New York.
    2. Ani E.C. (2006): An assessment of the extent and determinants of Intra-industry Trade in the Economic Community of West African States (ECOWAS). [An unpublished Ph.D thesis.] Department of Economics, University of Nigeria Nssuka.
    3. Balassa B. (1960): Tariff reduction and trade in manufactures among industrial countries. American Economic Review, 56: 466-473.
    4. Balassa B. (1986): The determinants of intra-industry specialization in US trade. Oxford Economics Papers, 38: 220-233. Go to original source...
    5. Balassa B., Bauwens L. (1987): Intra-industry specialization in a multi-country and multi-industry framework. Economic Review Journal, 97: 923-939. Go to original source...
    6. Caves R.E. (1981): Intra-industry trade and market structure in the industrial countries. Oxford Economic Papers, New Series, 33: 203-223 Go to original source...
    7. Davis H. (1999): Regional economic impact analysis and project evaluation. Eastern African Economic Review, vol. 16.
    8. ECOWAS (1975): Treaty of the Economic Community of West African States. ECOWAS Secretariat, Lagos.
    9. ECOWAS Handbook on international Trade (2008): A Publication of The Executive Secretariat. Abuja, Nigeria.
    10. ECOWAS Statistical Bulletin (2008): A Publication of the Executive Secretariat. Abuja, Nigeria.
    11. Eurostat (2013): Intra EU share of EU-27 trade in goods. Available at http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-SF-12-003
    12. FOS (1981, 1986): Review of External Trade. Federal Office of Statistics, Lagos, Nigeria.
    13. Greenaway D., Milner R.C. (2003): What have we learned from a Generation's Research on Intra-industry Trade? Research Paper Series 2003/44, Leverhulme Centre for Research on Globalisation and Economic Policy, The University of Nottingham.
    14. Grubel H.G., Lloyd P.J. (1975): Intra-industry Trade: The Theory and Measurement of International Trade in Differentiated Products. Wiley, New York.
    15. Helpman E., Krugman P.R. (1985): Market Structure and Foreign Trade Wheat Sheet Bonds: MIT Press, Cambridge. http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/
    16. Koutsoyiannis A. (2001): Theory of Econometrics: an Exposition of Econometric Method. 2 nd ed. Pal Grave Publishers, pp. 283-284.
    17. Krugman P.R. (1979): Increasing returns monopolistic competition and international trade. Journal of International Economics, 9: 464-479. Go to original source...
    18. Lancaster K. (1980): Intra-industry trade under perfect competition. Journal of International Economics, 10: 151-175 Go to original source...
    19. Lovely M. (1999): Trade and Labour Market Adjustment Center for Research on Globalization and Labor Markets. School of Economics, University of Nottingham.
    20. Maddala G.S. (1983): Limited-Dependent and Qualitative Variables in Econometrics. Cambridge University Press, London. Go to original source...
    21. Musonda F.M. (1994): Intra-Industry Trade between Members of PTA/COMESA Regional Trading Agreement. AERC Research paper 64, Nairobi, Kenya.
    22. NBS (2007): Review of External Trade. National Bureau of Statistics, Abuja, pp. 42-281.
    23. NBS (2010): Nigeria Foreign Trade Summary. National Bureau of Statistics, Abuja, pp. 15-30.
    24. Onogwu G.O. (2011): An Analysis of Intra-industry Trade in Agricultural Products between Nigeria and Partner Nations within the Economic Community of West African States (ECOWS). [Unpublished Ph.D. Thesis.] Department of Agricultural Economics, University of Nigeria, Nsukka.
    25. Polit D. (1996): Data Analysis and Statistics for Nursing Research. Appleton & Lange, Stamford.
    26. Ruffin R. (1999): Protection and real wages. The neoclassical ambiguity. Journal of Economics Theory, 14: 337-348. Go to original source...
    27. Stone L.L (1997): The Growth of Intra-Industry Trade. Garland Publishers, New York.
    28. United Nations Statistics Division (1981-2010): National Accounts of ECOWAS member Nations. UNSD, ECOWAS, Abuja.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content