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

Mohammed Bello Usman; Ibrahim Maharazu; Olugbenga Omotayo Alabı; Olugbenga Oladele; Jeremiah Aluwong

Article Details

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

Authors:

Mohammed Bello Usman | Ibrahim Maharazu | Olugbenga Omotayo Alabı | Olugbenga Oladele | Jeremiah Aluwong

Publisher:

Akdeniz University

Main Topics:

Farm Enterprises | Sustainable Agricultural Development | Agricultural Policy

Journal:

Mediterranean Agricultural Sciences Vol.37 Issue 2, pp.73-80

Document Type:

Article

Publication Date:

2/2024

Document Language:

English

Document ID (Org No.):

2001324462

pISSN:

2528-9675

Keywords:

Abstract:

 This research study evaluated the dynamics and competitiveness of Nigerias 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 Nigerias sesame seed in international trade. The real exchange rate had a negative coefficient and was non-significantly related to the dynamics and competitiveness of Nigerias 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.

 This research study evaluated the dynamics and competitiveness of Nigerias 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 Nigerias sesame seed in international trade. The real exchange rate had a negative coefficient and was non-significantly related to the dynamics and competitiveness of Nigerias 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.

 This research study evaluated the dynamics and competitiveness of Nigerias 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 Nigerias sesame seed in international trade. The real exchange rate had a negative coefficient and was non-significantly related to the dynamics and competitiveness of Nigerias 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.

 This research study evaluated the dynamics and competitiveness of Nigerias 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 Nigerias sesame seed in international trade. The real exchange rate had a negative coefficient and was non-significantly related to the dynamics and competitiveness of Nigerias 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.

Article Details

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

Authors:

Mohammed Bello Usman | Ibrahim Maharazu | Olugbenga Omotayo Alabı | Olugbenga Oladele | Jeremiah Aluwong

Publisher:

Akdeniz University

Main Topics:

Farm Enterprises | Sustainable Agricultural Development | Agricultural Policy

Journal:

Mediterranean Agricultural Sciences Vol.37 Issue 2, pp.73-80

Document Type:

Article

Publication Date:

2/2024

Document Language:

English

Document ID (Org No.):

2001324462

pISSN:

2528-9675

Dynamics

Export potentials

Competitiveness

Sesame production

Vector Error Correction modelDynamics

Export potentials

Competitiveness

Sesame production

Vector Error Correction model

Issues

Article Details

Authors: Mohammed Bello Usman | Ibrahim Maharazu | Olugbenga Omotayo Alabı | Olugbenga Oladele | Jeremiah Aluwong

Publisher: Akdeniz University

Main Topics: Farm Enterprises | Sustainable Agricultural Development | Agricultural Policy

Journal: Mediterranean Agricultural Sciences Vol.37 Issue 2, pp.73-80

Document Type: Article

Publication Date: 2/2024

Document Language: English

Document ID (Org No.): 2001324462

pISSN: 2528-9675

Issues

Authors:

Mohammed Bello Usman | Ibrahim Maharazu | Olugbenga Omotayo Alabı | Olugbenga Oladele | Jeremiah Aluwong

Publisher:

Akdeniz University

Main Topics:

Farm Enterprises | Sustainable Agricultural Development | Agricultural Policy

Journal:

Mediterranean Agricultural Sciences Vol.37 Issue 2, pp.73-80

Document Type:

Article

Publication Date:

2/2024

Document Language:

English

Document ID (Org No.):

2001324462

pISSN:

2528-9675