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Dynamics and competitiveness of Nigeria’s sesame production in international trade: Vector error correction method

Year 2024, Volume: 37 Issue: 2, 73 - 80, 02.08.2024
https://doi.org/10.29136/mediterranean.1480015

Abstract

This research study evaluated the dynamics and competitiveness of Nigeria’s sesame (Sesamum indicum) production in international trade. Secondary data were used, in the data period of 1982 to 2022 (41 years). The data used were sourced from NBS, CBN, FAO, World Bank publication, and General Household Survey-Panel (GHS-P) in conjunction with Federal Ministry of Agriculture and Rural Development. The econometric tools used were Augmented Dickey-Fuller (ADF) unit root test, Johansen co-integration test, Zivot – Andrews (Z-A), Lee Strazicich (LM) structural break unit root tests, and vector error correction model (VECM). The result of the ADF unit root test shows that all the test variables were stationary at first difference I (1). The results of the Johansen co-integration test for the time series data shows that the trace test statistics indicate 2 co-integrating equations, the Max-Eigen values also indicates 2 co-integrating equations. The estimated long run effect using VECM shows that area, yield, and world trade in oilseed, were positively and significantly related to the dynamics and competitiveness of Nigeria’s sesame seed in international trade. The real exchange rate had a negative coefficient and was non-significantly related to the dynamics and competitiveness of Nigeria’s sesame seed in international trade. The coefficient of the error correction term (ECM) is with the expected negative sign and statistically significant at 1% level of probability, this is an indication of a move back towards equilibrium with a magnitude of -0.95. Policies that would encourage exportation of sesame should be pursued and enhancing research activities on improving quality of sesame produced.

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Thanks

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References

  • Abbott PH, Bredahl M (1992) Competitiveness: Definitions, Useful Concepts and Issues. Infoagro.net, Accessed 2 January, 1992.
  • Alabi OO, Madaki MJ, Sanusi SO, Umar SA, Omole EB, Olumuyiwa SA, David HS, Emeghara UU, Waziri-Ugwu PR, Shaba MG (2022) Factors Influencing Export Performance of Ginger (Zinbiger officinale) in Nigeria. International Journal of Agriculture, Environment and Food Sciences 6(3): 370-377.
  • Aro-Gordon S (2017) Econometric Analysis of Exchange Rate and Export Performance in a Developing Economy. Asian Economic and Financial Review 7(4): 334-348.
  • Bedigian D (2015) Systematics and Evolution in Sesamum L (Pedaliaceae) Part 1: Evidence Regarding the Origin of Sesame and its Closest Relatives. Webba, Journal of Plant Taxonomy and Geography 70: 1-42.
  • Cision PR Newswire (2019) Global Sesame Seeds Market Worth $17.77 Billion by 2025: Hexa Research, available from: https://www.prnewswire.com/news-releases/global-sesame-seeds-market-worth-17-77-billion-by-2025-hexa-research-300791447. html. Accessed 12 March, 2020.
  • Dickey DA, Wayne AF (1979) Distribution of the Estimators for Autoregressive Time Series with a Unit Root. Journal of the American Statistical Association 74(366): 427-431.
  • Dickey DA, Fuller WA (1981) Likelihood Ratio Statistics for Autoregressive Time Series with Unit Root. Econometrica 49: 1057-1072. http://dx.doi.org/10.2307/1912517.
  • Fagerberg J (1988) International Competitiveness. The Economic Journal 98: 355-374.
  • FAO (2011) Food and Agriculture Organization, Database, Rome, Italy, Accessed 12 February, 2011.
  • FAO (2019). Food and Agriculture Organization Database, Rome, Italy, Accessed 17 January, 2019.
  • FAO (2024) Food and Agriculture Organization, Database, Rome, Italy, Accessed 23 February, 2024.
  • FAOSTAT (2024) Food and Agriculture Organization Database, Italy, Accessed 16 January, 2024.
  • Haque I (1995) Technology and Competitiveness, Chapter 2: Trade, Technology and International Competitiveness, the World Bank, USA.
  • Kingu J (2014) Determinants of Tanzania Agricultural Export: Case of Cotton lint. Developing Country Studies 4(1): 91-104.
  • Lee J, Strazicich MC (2004) Minimum LM Unit Root Test with Two Structural Break, Working Paper, Department of Economics, Appalachain State University.
  • NBS (2016) Annual Abstract of Statistics, National Bureau of Statistics, Abuja.
  • NPC (2024) National Population Commission of Nigeria. Updated National Census.
  • Okuduwor AA, Amadi Robert CC, Udi OI (2022) Assessing Agricultural Export Evidence on Economic Growth in Nigeria: 1999 – 2020. International Journal of Business and Applied Economics 2(2): 79-96.
  • Umar SA (2020) The Competitiveness of Nigeria’s Sesame and Soyabean Export in International Trade: 1986 – 1997. Unpublished PhD Thesis Department of Agricultural Economics, University of Abuja, Nigeria.
  • Wacal C, Basalirwa D, Okello-Anyanga W, Murongo M F, Namirembe C, Malingumu R (2021) Analysis of Sesame Seed Production and Export Trends: Challenges and Strategies Towards Increasing Production in Uganda. Oilseeds & Fats and Lipids (OCL) 28, 4.
  • Zebib H, Bultosa, G, Abera S (2015) Physico-Chemical Properties of Sesame (Sesamum indicum) Varieties Grown in Northern Area, Ethiopia. Agricultural Sciences 6: 238-246.
  • Zivot E, Andrews DWK (1992) Further Evidence on the Great Crash, the Oil Price Shock and the Unit Root Hypothesis. Journal of Business and Economic Studies 10: 251-270.

Dynamics and competitiveness of Nigeria’s sesame production in international trade: Vector error correction method

Year 2024, Volume: 37 Issue: 2, 73 - 80, 02.08.2024
https://doi.org/10.29136/mediterranean.1480015

Abstract

This research study evaluated the dynamics and competitiveness of Nigeria’s sesame (Sesamum indicum) production in international trade. Secondary data were used, in the data period of 1982 to 2022 (41 years). The data used were sourced from NBS, CBN, FAO, World Bank publication, and General Household Survey-Panel (GHS-P) in conjunction with Federal Ministry of Agriculture and Rural Development. The econometric tools used were Augmented Dickey-Fuller (ADF) unit root test, Johansen co-integration test, Zivot – Andrews (Z-A), Lee Strazicich (LM) structural break unit root tests, and vector error correction model (VECM). The result of the ADF unit root test shows that all the test variables were stationary at first difference I (1). The results of the Johansen co-integration test for the time series data shows that the trace test statistics indicate 2 co-integrating equations, the Max-Eigen values also indicates 2 co-integrating equations. The estimated long run effect using VECM shows that area, yield, and world trade in oilseed, were positively and significantly related to the dynamics and competitiveness of Nigeria’s sesame seed in international trade. The real exchange rate had a negative coefficient and was non-significantly related to the dynamics and competitiveness of Nigeria’s sesame seed in international trade. The coefficient of the error correction term (ECM) is with the expected negative sign and statistically significant at 1% level of probability, this is an indication of a move back towards equilibrium with a magnitude of -0.95. Policies that would encourage exportation of sesame should be pursued and enhancing research activities on improving quality of sesame produced.

Project Number

NIL

References

  • Abbott PH, Bredahl M (1992) Competitiveness: Definitions, Useful Concepts and Issues. Infoagro.net, Accessed 2 January, 1992.
  • Alabi OO, Madaki MJ, Sanusi SO, Umar SA, Omole EB, Olumuyiwa SA, David HS, Emeghara UU, Waziri-Ugwu PR, Shaba MG (2022) Factors Influencing Export Performance of Ginger (Zinbiger officinale) in Nigeria. International Journal of Agriculture, Environment and Food Sciences 6(3): 370-377.
  • Aro-Gordon S (2017) Econometric Analysis of Exchange Rate and Export Performance in a Developing Economy. Asian Economic and Financial Review 7(4): 334-348.
  • Bedigian D (2015) Systematics and Evolution in Sesamum L (Pedaliaceae) Part 1: Evidence Regarding the Origin of Sesame and its Closest Relatives. Webba, Journal of Plant Taxonomy and Geography 70: 1-42.
  • Cision PR Newswire (2019) Global Sesame Seeds Market Worth $17.77 Billion by 2025: Hexa Research, available from: https://www.prnewswire.com/news-releases/global-sesame-seeds-market-worth-17-77-billion-by-2025-hexa-research-300791447. html. Accessed 12 March, 2020.
  • Dickey DA, Wayne AF (1979) Distribution of the Estimators for Autoregressive Time Series with a Unit Root. Journal of the American Statistical Association 74(366): 427-431.
  • Dickey DA, Fuller WA (1981) Likelihood Ratio Statistics for Autoregressive Time Series with Unit Root. Econometrica 49: 1057-1072. http://dx.doi.org/10.2307/1912517.
  • Fagerberg J (1988) International Competitiveness. The Economic Journal 98: 355-374.
  • FAO (2011) Food and Agriculture Organization, Database, Rome, Italy, Accessed 12 February, 2011.
  • FAO (2019). Food and Agriculture Organization Database, Rome, Italy, Accessed 17 January, 2019.
  • FAO (2024) Food and Agriculture Organization, Database, Rome, Italy, Accessed 23 February, 2024.
  • FAOSTAT (2024) Food and Agriculture Organization Database, Italy, Accessed 16 January, 2024.
  • Haque I (1995) Technology and Competitiveness, Chapter 2: Trade, Technology and International Competitiveness, the World Bank, USA.
  • Kingu J (2014) Determinants of Tanzania Agricultural Export: Case of Cotton lint. Developing Country Studies 4(1): 91-104.
  • Lee J, Strazicich MC (2004) Minimum LM Unit Root Test with Two Structural Break, Working Paper, Department of Economics, Appalachain State University.
  • NBS (2016) Annual Abstract of Statistics, National Bureau of Statistics, Abuja.
  • NPC (2024) National Population Commission of Nigeria. Updated National Census.
  • Okuduwor AA, Amadi Robert CC, Udi OI (2022) Assessing Agricultural Export Evidence on Economic Growth in Nigeria: 1999 – 2020. International Journal of Business and Applied Economics 2(2): 79-96.
  • Umar SA (2020) The Competitiveness of Nigeria’s Sesame and Soyabean Export in International Trade: 1986 – 1997. Unpublished PhD Thesis Department of Agricultural Economics, University of Abuja, Nigeria.
  • Wacal C, Basalirwa D, Okello-Anyanga W, Murongo M F, Namirembe C, Malingumu R (2021) Analysis of Sesame Seed Production and Export Trends: Challenges and Strategies Towards Increasing Production in Uganda. Oilseeds & Fats and Lipids (OCL) 28, 4.
  • Zebib H, Bultosa, G, Abera S (2015) Physico-Chemical Properties of Sesame (Sesamum indicum) Varieties Grown in Northern Area, Ethiopia. Agricultural Sciences 6: 238-246.
  • Zivot E, Andrews DWK (1992) Further Evidence on the Great Crash, the Oil Price Shock and the Unit Root Hypothesis. Journal of Business and Economic Studies 10: 251-270.
There are 22 citations in total.

Details

Primary Language English
Subjects Farm Enterprises, Sustainable Agricultural Development, Agricultural Policy
Journal Section Makaleler
Authors

Mohammed Bello Usman 0009-0000-3841-7686

Ibrahim Maharazu 0000-0002-0968-6112

Olugbenga Omotayo Alabı 0000-0002-8390-9775

Olugbenga Oladele 0000-0001-8831-5979

Jeremiah Aluwong 0000-0001-8462-538X

Project Number NIL
Publication Date August 2, 2024
Submission Date May 7, 2024
Acceptance Date July 21, 2024
Published in Issue Year 2024 Volume: 37 Issue: 2

Cite

APA Usman, M. B., Maharazu, I., Alabı, O. O., Oladele, O., et al. (2024). Dynamics and competitiveness of Nigeria’s sesame production in international trade: Vector error correction method. Mediterranean Agricultural Sciences, 37(2), 73-80. https://doi.org/10.29136/mediterranean.1480015
AMA Usman MB, Maharazu I, Alabı OO, Oladele O, Aluwong J. Dynamics and competitiveness of Nigeria’s sesame production in international trade: Vector error correction method. Mediterranean Agricultural Sciences. August 2024;37(2):73-80. doi:10.29136/mediterranean.1480015
Chicago Usman, Mohammed Bello, Ibrahim Maharazu, Olugbenga Omotayo Alabı, Olugbenga Oladele, and Jeremiah Aluwong. “Dynamics and Competitiveness of Nigeria’s Sesame Production in International Trade: Vector Error Correction Method”. Mediterranean Agricultural Sciences 37, no. 2 (August 2024): 73-80. https://doi.org/10.29136/mediterranean.1480015.
EndNote Usman MB, Maharazu I, Alabı OO, Oladele O, Aluwong J (August 1, 2024) Dynamics and competitiveness of Nigeria’s sesame production in international trade: Vector error correction method. Mediterranean Agricultural Sciences 37 2 73–80.
IEEE M. B. Usman, I. Maharazu, O. O. Alabı, O. Oladele, and J. Aluwong, “Dynamics and competitiveness of Nigeria’s sesame production in international trade: Vector error correction method”, Mediterranean Agricultural Sciences, vol. 37, no. 2, pp. 73–80, 2024, doi: 10.29136/mediterranean.1480015.
ISNAD Usman, Mohammed Bello et al. “Dynamics and Competitiveness of Nigeria’s Sesame Production in International Trade: Vector Error Correction Method”. Mediterranean Agricultural Sciences 37/2 (August 2024), 73-80. https://doi.org/10.29136/mediterranean.1480015.
JAMA Usman MB, Maharazu I, Alabı OO, Oladele O, Aluwong J. Dynamics and competitiveness of Nigeria’s sesame production in international trade: Vector error correction method. Mediterranean Agricultural Sciences. 2024;37:73–80.
MLA Usman, Mohammed Bello et al. “Dynamics and Competitiveness of Nigeria’s Sesame Production in International Trade: Vector Error Correction Method”. Mediterranean Agricultural Sciences, vol. 37, no. 2, 2024, pp. 73-80, doi:10.29136/mediterranean.1480015.
Vancouver Usman MB, Maharazu I, Alabı OO, Oladele O, Aluwong J. Dynamics and competitiveness of Nigeria’s sesame production in international trade: Vector error correction method. Mediterranean Agricultural Sciences. 2024;37(2):73-80.

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