An Analysis of Determinants of Cocoa Export Trade In Nigeria (1981 -2014): A Bounds Testing Approach

Authors

  • Binuomote S.  Department of Agricultural Economics, Ladoke Akintola University of Technology, Ogbomoso. Nigeria
  • O. T. Nnaomah  Department of Agricultural Economics, Micheal Opara University of Agriculture, Umudike. Nigeria
  • Togun O. M.  Department of Agricultural Economics and Extension, Lake Chad Research Institute, Maiduguri, Borno State, Nigeria

Keywords:

Export, Cointegration, Cocoa, Export price.

Abstract

This study examined the determinants of cocoa export in Nigeria between 1980 and 2014 using Autoregressive Distributed Lags modeling approach to cointegration, with Secondary data spanning 1980 to 2014 on Nigeria’s value of cocoa beans exports, volume of cocoa beans exports, cocoa beans export, cocoa beans output, comparative export performance index for Nigeria in cocoa, world volume of cocoa bean export, exchange rate, price of crude oil, per capita income which were obtained various issues of CBN statistical bulletin, CBN annual reports and statement of account, statistical database of the Food and Agricultural Organization of the United Nations (FAOSTAT). The cointegration results show there is a long-run equilibrium relationship between cocoa export volume and the selected explanatory variables. The OLS results provide a positive and significant relationship between cocoa comparative export performance, and world export volume of cocoa. However, the results show an inverse relationship between cocoa export volume in Nigeria and per capita income, cocoa export price and price of crude oil. The findings of this study indicate that Nigeria has a comparative advantage in cocoa export. An enabling environment and farming- incentives supply created by Nigerian government and relevant export partners will go a long way in stimulating cocoa producers and also reposition Nigeria towards sustainable cocoa production and export in the country.

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International Journal of Scientific Research in Science and Technology

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Published

2015-12-30

Issue

Volume 1, Issue 5, November-December-2015

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Research Articles

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How to Cite

[1]
Binuomote S., O. T. Nnaomah, Togun O. M., " An Analysis of Determinants of Cocoa Export Trade In Nigeria (1981 -2014): A Bounds Testing Approach, International Journal of Scientific Research in Science and Technology(IJSRST), Online ISSN : 2395-602X, Print ISSN : 2395-6011, Volume 1, Issue 5, pp.340-349, November-December-2015.