The results which is derived from the empirical analysis shows that agriculturalexports and agriculturalproductivity have causal relationship between these two variables or more specifically when agriculturalproductivity increase so this may leads to increase in the agriculturalexports like (Chaudhry and Kayani, 2009) has done that when agriculturalproductivity increases so may leads to increase in agriculturalexports and vice versa .When agriculturalexports increases so this means that there is also increase in agriculturalproductivity because when exports increases so this leads to utilize the resources efficiently to produce maximum output to fulfill the demand which also done by Iqbal, Munir and all (2003). While another objective of the research is that to check the effect of agriculturalexports on agriculturalimports so by seeing the above results it is also concluded that when agriculturalexports increases so this leads to decrease in the agriculturalimports because we are exporting the agricultural good mean that the agriculturalproductivity is greater so that why we are exporting and then ultimately the imports of agricultural commodities is less while agriculturalimports doesn’t cause any effect on agriculturalproductivity like when agriculturalimports in terms of finished products so it does not increase or decrease the agriculturalproductivity which is also done by (Mustafa And all 2001) in their study
For robustness analysis, we have also included some other variables in our model, i.e. agricultural terms of trade, industrialisation, carbon emission and rural labour force. Table 6 provides the estimated results. All previous variables have not only maintained their signs, but their significance levels have also increased. Financial development has become statistically signi- ficant in both FMOLS and DOLS estimations. More- over, trade openness has also become statistically significant. Agricultural terms of trade has a negative impact on agriculturalproductivity. In other words, when agriculture export price increases, relative to agriculture import price, agriculture production decreases. The intuition is that agriculture exports become expensive and agriculture imports become cheaper which discourages agriculture production. Economically speaking, 1% increase in agriculture terms of trade decreases agriculturalproductivity by 0.217% (0.003%) in FMOLS (DOLS).
During the last decade trade policy in South Africa has undergone several changes. These changes include multilateral reductions in tariffs and subsidies through the country’s World Trade Organization (WTO) commitments, the signing of Free Trade Agreements (FTAs) and more recently, negotiations around future commitments to liberalisation both at multilateral level as well as regional level. These simultaneous developments have had an important influence on both de facto protections in the South African economy, as well as on welfare improvement (Organisation on Economic Co-Operation and Development (OECD), 2006). The opening of the agricultural sector placed South Africa among the world’s leading exporters of agro-food products such as wine, fresh fruit and sugar. The country is also an important trader in the African region. The beginning of the current decade witnessed particularly strong agricultural export oriented growth. South Africa’s agricultural export revenues reached almost 9% of the total value of national exports. Europe is by far the largest destination, absorbing almost one-half of the country’s agriculturalexports (OECD, 2006). Agriculturalimports are also growing, accounting for 5-6% of total annual imports since 2000 (OECD, 2006). However, Coetzee (2008) indicated that the current export trend shows that the capacity is declining, whereas import is growing tremendously. South Africa is to become a net importer of major food items.
During the year 2010 have seen an improvement in trade balance (calculate local needs from domestic production plus exports minus imports), some products of agro-processing sector. Value- added services sector and the agricultural sector contributed positively but to a lesser extent annual increase of real GDP.
. The results are shown in the third column of Table 6. These percentages capture both the first-order effects discussed above, and the indirect effects through changes in global prices (as before, relative to price changes in the US). Notice that the indirect effects are now discernible in the data. The impact of a reduction of China’s expenditures in its imports of agricultural goods reduces agriculturalexports of Malawi and Mozambique by 3.58 percent. Similar numbers are observed for Tanzania (-5.15 percent), Zambia (-4.01 percent), and the SACU (-4.01 percent). In principle, it would be tempting to link these results to a generalized effect of China on world food prices. However, given the level of aggregation in the data, it is quite possible that these results may be somewhat artificial. To see this more clearly, let us consider a situation in which China's effects are limited to oilseeds. In the aggregate data, an increase in the price of oilseeds appears as a diluted increase in the price of all food products. Thus, we are valuing the SA exports with this effect, even if Southern African countries do not export oilseeds.
Theoretically trade liberation is deemed to enhance efficiency, which then enable the trading countries to achieve welfare gains, however export subsidies as highlighted in various sections of this chapter tend to distort acceptable and progressive trading patterns. A country that exports local produce can be presented with new market opportunities, which can result in employment and income for its citizens. This is essentially the central theme of the WTO ‘s aims, such as raising living standards, ensure full employment and increase incomes. From the literature review in this chapter it is clear that industrialised and export-oriented production requires access to technology, infrastructure and capital. It is therefore unfortunate that most small-scale farmers do not have access to technology and capital; as a result they cannot afford to compete globally. Farmers in developing countries suffer from competition by cheap imports from subsidised producers.
There is a long-standing debate over the relationship between the export and economic growth in both advanced and less advanced economies. There are a couple of empirical studies that conﬁ rm the robust connection between export and economic growth in countries across the globe. Some studies support the hypothesis of export- led growth (ELG) mostly in the developing nations (Chenery and Strout, 1966; Michaely, 1977; Balassa, 1978; Tyler, 1981; Kavoussi, 1984; Ram, 1985; Shirazi and Manap, 2005; Kang, 2015). They argue that the exports of goods and services generate foreign exchange that is required to import foreign goods. The increase in underlying commodities’ imports, in turn, stimulate a nation’s capacity to produce in the long run. This is more pronounced in less developed economies that have a heavy disadvantage in the production of capital goods.
This section presents the general equilibrium trade model that builds on Yi and Zhang . Overall, the environment is composed of N countries each with three sectors: agriculture, manufacturing, and services. I incorporate standard dual-economy features found in the macroeconomics literature: (1) non-homothetic preferences and (2) labour market distortions between agriculture and nonagriculture. This preference struc- ture captures Engel’s law: food expenditure shares decline dramatically with income. The labour market distortions capture large sectoral wage differences and high labour mobility costs in poor countries. To in- corporate open-economy considerations, agriculture and manufacturing are composite goods composed of individually tradable and horizontally differentiated varieties. Each variety is sourced from the lowest cost producer, whether at home or abroad, which introduces within sector trade (exporting a subset of varieties to import others). Between sector trade is also available, where a surplus of exports over imports in agriculture, for example, allows for a net import of manufactured goods. Importantly, this structure does not imply per- fect specialization and it links trade patterns to sectoral productivity and trade costs. I conclude this section by defining an equilibrium and by describing a solution procedure for wages and labour allocations.
The ratio of female-to-male marginal products of 0.64 indicates that men contribute more to total farm output at the margin than women, which is reasonably close to the relative wage. This may be due to women's tendency to be casual rather than regular farm workers in the Peruvian Sierra, and to spend more time, on average, in household and nonfarm business activities than in farm work. Jacoby argues that women may sort themselves into these activities because they are "innately" more productive in them than men, and that these productivity differences are accentuated by the acquisition of sector- specific human capital by both men and women. However, since the same agricultural tasks (for example, land preparation) are performed by women in other farming systems, it may not be valid to use the findings from the static measurement of a production technology to generalize about a division of labor that may be jointly determined by culture and comparative advantage. An alternative explanation proposes that there could be a premium related to body size in some agricultural operations that would then be reflected in higher productivity of men relative to women. This is explored in further detail below.
Kenyan Agricultural sector has continued to rely heavily on rain-fed agriculture. However, this has been an area of concern, due to the effects of global warming; climate is not very predictable coupled with natural disasters like drought, floods, and mudslides. There is a close relationship between rainfall and agricultural output as it affects productivity in many counties in Kenya. Only about a third of Kenyan land is agricultural land (World Bank Group, 2015). Agricultural land, in this case, is described as the share of land that is arable and under permanent crop and pasture. Thus there is a huge variability in production by region in Kenya based on whether the region receives adequate rainfall or not. However, if irrigation is adopted across the country this could greatly reduce the regional variability of productivity. This is, however, subject to irrigation potential of different regions as well as budget constraints due to the high costs involved in establishing irrigation schemes. The climatic condition affects policies as well as the use of inputs which has a direct impact on productivity.
We also touch base with a sizeable microeconomic literature on tenure insecurity and agriculturalproductivity. A limited number of these papers focus on misallocation across users. The contributions in Holden, Otsuka and Place (2009b) for example provide indi- rect evidence that land sale and rental markets (which presumably depend positively on land security) produce allocative gains in several Sub-Saharan African countries. In the Ethiopian context de Brauw and Mueller (2012) find that perceptions of land tenure secu- rity foster increased rural-urban migration, though the effect is not particularly strong. A study on the Dominican Republic by Macours, de Janvry and Sadoulet (2010) finds that insecure land rights prompt owners to limit land rentals to close kin only, thus preventing allocation to more efficient users. In the case of Mexico, Macours, de Janvry and Sadoulet (2012) document that formal land titling enabled a market-based reallocation (through sales and rentals) to more productive land-poor from less productive land-rich farmers, and a stronger outmigration of the latter. These papers measure misallocation in a partial equilibrium setting while our paper stresses equilibrium adjustments.
The misallocation literature studies di¤erent regulations that limit mobility of workers across sectors or land acquisition. These regulations directly a¤ect the optimal allocation of inputs, mainly in the agricultural sector, which reduces productivity. We show how this type of regulation can a¤ect agricultural composition thus introducing another channel through which relative labor productivity is altered. This is illustrated in Figure 12, where we compare the calibration of Brazil with an economy subject to an extreme labor mobility restriction that prevents workers from moving out of agriculture. This type of restriction is similar to the one introduced in Hayashi and Precott (2008). In this counterfactual economy, the number of farmers remains constant at the level of the initial period. This restriction has three e¤ects. First, it prevents any increase in average farm size, which a¤ects productivity in agriculture negatively, as in Adamopoulos and Restuccia (2014). Second, since the number of farmers is now larger, labor intensive agriculture is bene…ted. This explains the decline in relative prices. As a consequence, farmers and land remain employed in the labor intensive sector. Third, the abundance of farmers and the absence of structural change deter capital accumulation in the agricultural sector. Therefore, relative capital intensity declines. The conjunction of these three e¤ects explains the decline in relative labor productivity. As follows from (33), the reduction in the relative labor productivity is explained by both a reduction in relative productivity in each agricultural sector (see Panels (g) and (h)) and by a process of structural change towards labor intensive agriculture. Therefore, the mechanism introduced in this paper can be seen as complementary to the ones in the misallocation literature in explaining di¤erences in relative labor productivity.
This development has drawn attention to the issue of exchange rate pass-through to domestic prices or the impact of exchange rate movement on import/export prices of the country. Is there any evidence of the impact of exchange rate on domestic prices? Is this impact or exchange rate pass-through is declining? These are the focal questions in the current study. A decline in exchange rate pass-through can have important macroeconomic implications. Exchange rate pass-through on import prices, for example, affects expenditure switching in the domestic market by changing the relative prices of imported and domestically produced goods. This raises the question of whether a decline in the exchange rate pass-through has weakened a channel through which current account imbalances can be adjusted.
In this paper the author examine the effect of imports, and exports on service sector productivity of Ghana for the period 1970-2013, using annual time series data. The Augmented Dickey-Fuller test (ADF), and the KwiatKowski (KPSS) test were used for the assessment of the effect of external shock on imports, exports, and service sector productivity whereas the ordinary least square method (OLS) was used to examine the role of import, and export on service sector productivity. The results indicate that the effect of external shock to imports, exports, and service sector productivity are permanent and not temporary. There is negative significant effect of export and positive effect of import on service sector productivity in Ghana during the period of discussion. The results suggest that policy makers can rely on import to influence service sector productivity and not export. Future studies should examine the effect of import of goods and services on the service sector productivity to determine whether the current findings will be replicated since the current study used export and import volumes. Keywords: Export, Import, Service Sector Productivity
The word credit was defined by Miller (1993) as a device for facilitating the temporary transfer of purchasing power from one individual or organization to another. He contended that credit provides the basis for production efficiency through specialization of function. Credit has been described as a continuation of potentially and actually obtaining goods and services (actually) by giving a promise to pay (potentiality). It is a present right to future payment Miller (1997). Credit is supposed to be based on mutual understanding between the two parties involved that is the lender and the borrower. This is because the word credit is coined from a Latin word CREDO which means literally I believe. The giving out of credit from individuals or organization to would-be lender is based on the confidence that such lender repay the money at the stipulated time. It is important to distinguish between credit capital and saving, which are much related word (Moosa, 2003). The agricultural Credit Guarantee Scheme Fund was established by Decree No 20 of 1977 and commenced full operations in April 1978. Hence, this study covered the period 1978 to 2007 in Ondo and Ekiti States. According to Olalokun et al (1999), the commercial banks have been identified as the main vehicle of monetary policy implementation in Nigeria. They are also the major financial intermediaries, because 80.3% of the assets and 85.3% of the total deposit liabilities of the financial institutions are managed by the commercial banks (CBN, 2003). Evidence also confirms that commercial banks show more practical interest in agricultural lending than the merchant banks and other specialized lending institutions (Osuntogun, 1993).
steps have been taken both by the state as well as central governments for agricultural development. To improve agriculturalproductivity the modern techniques are being used in agriculture. Since the 1950s, the drastic growth of world population has highlighted the limits of the agricultural expansion model capacity to provide sufficient food, more intensive agricultural practices were adopted during the green revolution (Borlaug, 2000). The main characteristics of modern agriculture are the application of high yielding varieties (HYV) of seeds, chemical fertilizers, pesticides, machinery etc. with the availability of water or improved irrigation facilities.
Annual productivity growth rates were generally pos- itive during 1948-94. Through the mid-1950’s, how- ever, productivity growth was very slow or even neg- ative as agriculture and the whole economy adapted to two major wars. The outmigration of farm labor was significant, and capital and intermediate inputs increased at very high rates, capturing the rapid movement toward mechanization on U.S. farms. Productivity growth remained fairly stable in the 1960’s. Growth in agricultural output of 1.45 percent per year was somewhat below average, labor contin- ued to decline sharply, and intermediate inputs (with the exception of pesticides) increased only moderately. During the 1970’s, demand for U.S. exports increased significantly and many U.S. producers geared up to meet the demand. The average annual rate of growth in agricultural output exceeded 2.2 percent per year. The average annual rate of growth in productivity during the 1970’s, however, was not even two-thirds of the growth rate of the 1960’s, since nearly half of the growth in output over this period was accounted for by growth in inputs. Growth in intermediate inputs increased over 2.5 percent per year during the 1970’s (table 1). Despite a three-fold increase in the price of petroleum fuels following the 1973 oil embargo, energy consumption in agriculture increased nearly 2 percent per year in the 1970’s. Short-lived concerns over food scarcity in the 1970’s gave way to expectations of chronic economic sur- pluses in the 1980’s. In 1983, the land area set aside totaled 80 million acres as a result of the Payment-In- Kind program. Growth in agricultural output aver- aged only 1.68 percent over 1980-90, but total factor input decreased at the same rate. Negative growth rates were observed in all major input categories (but pesticides), as the sector went through financial restructuring. Although labor had consistently declined since 1948, capital (equipment and land) and intermediate inputs also declined during the peri- od. The decline in inputs resulted in fairly high rates
Building Vietnamese brand and creating geographical indications for agricultural products of Vietnam. Strong pressure from other export countries is one reason why Vietnam needs to have the brand to make up the difference and use it as a key investment. A typical example like Cambodia has entered the rice export market since 2009. However, nowadays their products appear in 53 countries including more than half of exports to Europe. Production of Cambodia is a fifth of Vietnam’s one but their value is very high. Especially, Phka Romdoul rice has been voted the world's best rice for five years.
Ogen (2007) posits, that the neglect of the agricultural sector and the dependence of Nigeria on a mono-cultural, crude oil- based economy has not augured well for the well-being of the Nigerian economy. In a bid to address this drift, the Nigerian government from 1973 became directly involved in the commercial production of food crops. Several large scale agricultural projects specialising in the production of grains, livestock, dairies and animal feeds were established (Fasipe, 1990). Sugar factories were also established at Numan, Lafiagi and Sunti (Lawal, 1997). The Nigerian Agricultural and Co- operative Bank (NACB) was established in 1973 as part of government's effort to inject oil wealth into the agricultural sector through the provision of credit facilities to support agriculture and agro-allied businesses (Olagunju, 2000). Extant literature exists at State and national levels on the roles and impact of institutional credit agencies in the enhancement of agriculturalproductivity in Nigeria with divergent results. Efobi and Osabuohien (2011) have reiterated that while assessing the role of the agricultural credit guarantee scheme fund in promoting non-oil export in Nigeria, the Agricultural Credit Guarantee Scheme Fund (ACGSF) was established in 1977 with the aim of enhancing commercial banks’ loans to the agricultural sector in Nigeria with focus on agro-allied and agricultural production. However, many years down the line, the country witnessed poor participation in the international market with regard to non-oil export. Using Auto Regressive Distributed Lag (ARDL), they found, among others, that there exists a long-run relationship between the ACGSF and export, but the magnitude is minimal. It was therefore recommended, that adequate infrastructural and storage facilities which
The most important trends in values of Balassa’s index are the following. At the beginning of the period, the high value of the RCA index was observed in the group “Hides, skins and wool”. But later their exports signiﬁ cantly decreased and they lost a comparative advantage. It likely happened because of the continued decline in the livestock sector and because in 1998 the licensing for export of hides and skins of cattle, sheep and other animals was established.