TRADE, REVENUE AND WELFARE EFFECTS UNDER AN ECONOMIC PARTNERSHIP AGREEMENT BETWEEN BURKINA FASO AND THE EUROPEAN UNION

This study estimates the impact on Burkina Faso of eliminating tariffs on imports from the EU under EPAs, considering trade, revenue and welfare effects. At complete elimination of tariffs on all products imports from trade classification sections (TDC 01-13) from the EU. Burkina Faso is likely to experience both welfare gains and losses depending on the values of imports of each trade classification section in question. The overall welfare effect relative to GDP tends to be very small and positive, but potential tariff revenue losses are enormous even when the country has up to fifteen - twenty-five years in which to implement the tariff reductions, unless with scope for tax substitution. EPAs effects are concentrated on those product sections where trade creation outweighs trade diversion such as Animal products, Vegetable products, Animal/Veg. products, Mineral products, and Textiles products. Besides, product sections with the greatest market opportunities for EU suppliers to displace any of the other suppliers, ECOWAS and/or ROW include sections where trade diversion outweighs trade creation effects, such as prepared foodstuffs, product of chemicals, plastics, raw hides & skin, etc. The sensitive products (SPs) to be excluded from tariff removal should include sections in which ECOWAS member nations are suppliers to regional importers so that excluding them as SPs would improve the welfare gain compared to estimates where tariff are removed from those products in which ECOWAS have zero potential. The results at this level of aggregation will provide useful information to the on-going negotiations between ECOWAS and the EU in determining Burkinabe's products to be exempted from tariff removal during EPAs based on the severity of the effects on varied trade classification (TDC) sections, among other considerations

Regional Characteristics Effects on Intra-Industry Trade in Residues and Wastes from Food Mill Industry

The Economic Community of West African States (ECOWAS) has been enforcing sub-regional integration through such interventions like free international trade, common external tariff wall, consolidation or freezing of custom duties, non-tariff barriers to intra-trade and gradual phasing out of duties on industrial products from community projects over a period of 6-10 years at 10-16.6% annual rates of reduction, depending on the classification of member states based on the level of development, location and importance of customs revenue. The trade co-operation Agreements of ECOWAS was aimed at expanding the volume of intra-Community trade to ensure the integration of the sub-region through trade on goods originating from member countries. The objectives of this study are to: (i) review the pattern of regional trade in prepared foodstuffs at the instance of Nigeria (ii) assess intra-industry trade in residue and wastes from food industry sub-sections (iii) evaluate the share of intra-industry trade in the total trade of residue and wastes from food industry among ECOWAS member nations (iv) determine the effects of regional characteristics on the intra-industry trade of the product sub-section. The results revealed that intra-industry trade in residues and wastes are influenced partners' (GDP), population, and national value added by manufacturing. Efforts to employ efficient methods in production of raw materials for food mill industry is recommended, while regional stakeholders should increase output as well as add value in terms of packaging to improve the trade and integration within the sub-region

Effects of Marketing Constraints on Gross Margin of Local Rice Retailers in Ardo-Kola L.G.A, Taraba State, Nigeria

This study assessed the effects of marketing constraints on the gross margins of Local Rice retailers in Ardo-Kola L.G.A of Taraba State, Nigeria. Purposive and multistage random sampling methods were used to select twelve respondents each from five major markets in the study area, giving rise to 60 respondents. A structured questionnaire module was used in gathering information on retailers' socio-economic characteristics and constraints faced. Data obtained from completed questionnaire were organized and analyze using descriptive statistics such as frequency distributions, and percentages. Gross and net margin analyses were conducted to assess the profitability, while OLS regression model techniques was adopted to infer the effects of the constraints on the gross margin of the retailers. Results of the descriptive statistics reveal that women constituted 70% of the respondents. Those married constituted 55.0%, and those with primary education were 51.7% of the respondents. Saving was the main source of income and constituted 58.3% of the initial capital. An age range of 26-35 dominated rice retailers' age, with 41.7% of the respondents falling into this age group, while household size of 6-10 dominated, constituting 55% of the respondents. Also, the results of the regression analysis reveals that  retailers' constraints in terms of cost of union fee, transportation and shop rent significantly influence gross margin  at 1%, 5% and 10% levels of significance, respectively. It is recommended that since decrease in the costs of these independent variables increase gross marketing margins of the retailers, the local as well as the Federal governments and all stakeholders should rally around to reduce amounts payable as union fee, in addition to providing cheaper transportation and shop facilities to improve marketing margin and possibly increase the net income, and improve welfare of rice retailer marketers in the LGA on the long run. Keywords: Marketing Constraints, Effects, Rice Processors, Gross Margin, Net Income DOI: 10.7176/DCS/12-7-05 Publication date:November 30th 2022

Economic Viability of Fish Smoking and Marketing: Evidence from Ibi, Taraba State, Nigeria

This study explored the effects of socio-economic profile of the marketers and determined the economic viability of fish smoking and marketing in Ibi, Taraba State, Nigeria. A multistage random sampling technique was employed to illicit response from 80 respondents for the study. Data collection were through structured questionnaire. Descriptive statistics, regression analysis, marketing margin and net marketing margin estimation procedures among others, were used to determine the values of the profitability measures that infer the significant influential variables economic viability of fish smoking and marketing venture. The frequency distribution of respondents according to: - age, gender, marital status, household size, major occupation, educational level, marketing experience and preservation method adopted were constructed and detailed results presented in section 4. Marketing margin obtained was 23.43%, with a net marketing margin of 13.77%, resulting from a total gross and net revenue of smoked fish sales of N1, 378,889 and N810, 580, respectively. The smoked fish selling price, unsmoked fish purchasing price and total smoked fish cost stood at N5,886,079, N4,507,190 and N5,075,449, respectively. The fish smoking efficiency of 3.06 and smoked fish marketing efficiency of 2.43 indicates that the dealers make a net return of 3.06 times per N1.00 invested in fish smoking which sells 2.43 times faster than unsmoked type. Hence, a clear indication that fish smoking and marketing is economically viable in the area studied. It is recommended that national market development coordinating should be put in place to ensure the adoption of standard weight and measure for fish smoking and marketing in the area; cost saving transportation and smoking service facilities should be sustained by private individuals and corporate groups alike to improve efficiency of venture by dealers; capacity building for agricultural extension officers and enumerators on market information service (MIS) should be intensified by Government. Keywords: Economic viability; Marketing Margin; Net Marketing margin; net return, Fish smoking and   marketing. DOI: 10.7176/JMCR/52-0

Adjusting Liberalization due to Trade, Revenue, and Welfare Effects: An Economic Partnership Agreement Scenario between Cape Verde and the EU

The paper identifies intra and extra-regional import trade in 1868 HS 6-digits products by Cape Verde at the single country and 13 trade classification section levels, from the EU, the ECOWAS sub-region, and the ROW. Sensitive products enumeration was based on "Cape Verde's imports of products from the different trade classification (TDC) sections- from ECOWAS, the EU and the rest of the world (ROW), of which ECOWAS member nations were suppliers at the single country level". It investigates the likely trade, revenue and welfare consequences of Cape Verde of embarking on free trade under economic partnership agreements (EPAs) with the EU, using the partial equilibrium analysis and suggesting how EPAs can facilitate intra-regional trade. Cape Verde and indeed most other ECOWAS member nations would likely benefit from EPAs by adjusting to and treating all products of trade classification sections currently imported from the region as sensitive for EPAs, hence postponing any reductions or removal of tariffs on imports of such products from the EU. This measure would likely deepen regional integration and sustain markets and traded products within the regional markets. The EU could therefore support measures that enhance the productivity and competitiveness of domestic producers to ensure improved supply-side capacity. Cape Verde entering into such agreements should consider liberalization of products of the trade classification sections that are not produced and marketed among members of the region. Liberalizing substantially across all products of all trade classification sections, even considering 20% as sensitive products across board would have adverse trade, revenue and welfare impacts. Policies should be geared towards careful adjusting to liberalization patterns and reforms that would sustain regional markets and reallocate resources from contracting to expanding products of various trade classification sections. This will go a long way to improving, sustaining and deepening regional integration through trade on TDC sections 01-13 products

Factors Influencing Mechanized Farming and Farm Size Ownership in Nigeria

Agricultural Extension services in Nigeria had been making concerted efforts to make farmers adopt improved technology in their farm operations. If the country is to achieve increased food production for her teeming population, adoption of improved technology and increased farm size is inevitable. According to Amao et al, (2003) rural farmers cultivating an average of one hectare each still characterize the Nigerian agricultural sector. This paper examined the factors that influence the adoption of mechanized farm technology and farm size increase among rural farmers in Nigeria. Data on methods of farm land preparation, farm size and Agricultural Development Program (ADP) inputs to rural farmers were randomly collected from 435 rural farmers between 2006 and 2009. The instrument for data collection was a set of structured questionnaire cum oral discussion. The oral discussion focused on methods of farmland preparation, need for increased farm size as a means of improving farm output and sustainability. The data generated were subjected to t-test and regression analysis. Result show that farm size increased as irrigational facilities and loan to farmers were increased while farm technology is positively influenced by irrigation facilities, loan and presence of extension agents. The implication is that increased food production will be achieved if farmers are provided irrigation facilities and loans as these motivates the adoption of mechanized farm technology

Intra-Community Trade in Agricultural Products: Options for Trade Volume Expansion by ECOWAS

The study analyzed agricultural product trade data to ascertain the extent of involvement of ECOWAS in community trade between 2013 and 2017. The extent to which members fulfilled the regional trade co-operation policy objective of expanding the volume of intra-community trade is gauged by computed trade indices. Each index measures intra-community trade as a share of total trade, and takes values between 0 and 1. The value is 0, if trade is truly intra-community carried out by all or most members; and 1, if trade is inter-regional, most trade being carried out by few community members. Value of annual index were influenced by cases of none, under or over reporting by member nations. Analysis revealed that intra-community trade occurred more in animal than food products, while vegetable products accounted for less. It is recommended that ECOWAS member nations should seek and utilizing foreign direct investment in development of agricultural sector to improve value chain in addition to increasing and sustaining intra-community trade volume. Besides, reports of intra-community exports and imports of agricultural products should be accurate, and no member should import from other regions where sub-community members are suppliers. Keywords: Agricultural Product Sub-sections, ECOWAS, Intra-Community Trade, Extent. DOI: 10.7176/DCS/9-1-0