Abstract
International trade is one of the key factors of macroeconomic prosperity for any country. It is generally recognized that trade is essential for growth and that growth is critical for poverty reduction. In many nations in Africa where agriculture constitutes the largest portion of the economy and agricultural commodities figure prominently among the goods traded, international agricultural trade has been a notable motor of development. Agricultural trade is a generator of income and welfare for the millions of people who are directly or indirectly involved in it. Comparative advantage, one of the most celebrated concept/theory of economics, has globally dominated the field of international trade especially agricultural trade not only in academics but also in economic/development policy circles. Benin is one of the developing Sub-Saharan countries, of which the economic welfare depends essentially on agricultural trade. Agriculture contributes around 35 % in the country’s GDP and 80 % in the income generated by exports. By analysing the secondary cashew and cotton exports data retrieved from 1964 to 2014, three indices are calculated: the Revealed Comparative Advantage (RCA), the Revealed Competitiveness (RC) and Comparative Export Performance (CEP). In doing so, this study aimed to analyse the competitiveness of Benin’s two main agricultural export commodities that are cotton and cashew. Accordingly, the position of Benin will be compared with its neighbour countries competitive markets in West Africa, where selected crops export play a huge role in their economy. Nigeria for cashew and Burkina-Faso for cotton will be selected for data analysing watching the last 50 years (1964-2014). The analysis is conducted respecting data availability of the competing countries. This comparison of Benin and its major partners would provide an assessment of export specialization of Benin as well.
Keywords
Agricultural Trade Comparative Advantage Revealed Competitiveness Comparative Export Performance Benin Nigeria Burkina Faso
References
- Anonymous 2015b. The Afrıcan Cashew Sector In 2015: Analysis of cashew production, processing and trade in Africa. RONGEAD for the African Cashew initiative (ICA) from April to October 2015. 31p Anonymous 2015c. Diagnostic Trade Integration Study (DTIS) Update: From rents to competitiveness. Republic of Benin. World Bank. Final report – Mai 2015; Report No. 97242-BJ
- Badiane O., Ghura D., Goreux L. and Masson P. 2002. “Cotton Sector Strategies in West and Central Africa.” World Bank Policy Research Working Paper No. 2867. Balassa, B., 1965, Trade Liberalisation and ‘Revealed’ Comparative Advantage”, Manchester School of Economic and Social Studies 33(1):99-123
- FBSPL [Foretell Business Solutions Private Limited] 2008. Cashew Handbook 2008. A Global Perspective. First ed., July 2008, 261 pages
- Fertö, I. and Hubbard, L.J., 2003, “Revealed Comparative Advantage and Competitiveness in Hungarian Agri-Food Sectors”, the World Economy 26(2): 247259
- Gergely N. 2009. The Cotton Sector of Benin. Africa Region Working Paper Series No. 125, Comparative analysis of organization and performance of African cotton sectors. 69p
Abstract
References
- Anonymous 2015b. The Afrıcan Cashew Sector In 2015: Analysis of cashew production, processing and trade in Africa. RONGEAD for the African Cashew initiative (ICA) from April to October 2015. 31p Anonymous 2015c. Diagnostic Trade Integration Study (DTIS) Update: From rents to competitiveness. Republic of Benin. World Bank. Final report – Mai 2015; Report No. 97242-BJ
- Badiane O., Ghura D., Goreux L. and Masson P. 2002. “Cotton Sector Strategies in West and Central Africa.” World Bank Policy Research Working Paper No. 2867. Balassa, B., 1965, Trade Liberalisation and ‘Revealed’ Comparative Advantage”, Manchester School of Economic and Social Studies 33(1):99-123
- FBSPL [Foretell Business Solutions Private Limited] 2008. Cashew Handbook 2008. A Global Perspective. First ed., July 2008, 261 pages
- Fertö, I. and Hubbard, L.J., 2003, “Revealed Comparative Advantage and Competitiveness in Hungarian Agri-Food Sectors”, the World Economy 26(2): 247259
- Gergely N. 2009. The Cotton Sector of Benin. Africa Region Working Paper Series No. 125, Comparative analysis of organization and performance of African cotton sectors. 69p
Details
| Journal Section | Issue |
|---|---|
| Authors | |
| Publication Date | November 10, 2017 |
| Submission Date | November 10, 2017 |
| Published in Issue | Year 2017 Özel Sayı - ICEBSS 2017 |
