International Journal of Advanced Multidisciplinary Research and Studies
Volume 4, Issue 4, 2024
The Dynamics of Liberalization: Examining Trends and Growth in Nigeria's Cocoa Trade
Author(s): Abiodun Festus Akinrotimi
Abstract:
This study presents an empirical analysis of the impact of trade liberalization on Nigeria's cocoa sector, focusing on changes in production levels and growth rates before and after liberalization periods, from 1980-1984 and 2016-2020, respectively. Utilizing time series data, descriptive statistics and linearized growth rate functions were adopted for the data analysis. The findings show a significant increase in mean cocoa output, from 156,760 tons pre-liberalization to 323,993.6 tons post-liberalization, highlighting enhanced sector productivity. The growth function analysis reveals a shift from a negative growth rate of -1.193% during the pre-liberalization period to a positive rate of 2.634% post-liberalization. These results suggest that liberalization has fostered a more competitive and productive cocoa sector in Nigeria. Increased private sector involvement and improved market access were crucial factors contributing to this growth. The study underscores the importance of policy support and access to resources in maximizing the benefits of liberalization while addressing challenges such as market volatility and the need for sustainable practices.
Keywords: Cocoa, Growth Rate, Liberalization, Output, Production, Nigeria
Pages: 289-292
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