Trade performance and potential of North African countries: An application of a stochastic frontier gravity model

The objective of this paper is to analyze trade potential versus actual realized trade among North African trading partners. Following the literature on production economics, we built a stochastic frontier gravity model. The underlying assumption is that all deviations from trade potential is not du...

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Autores principales: Tamini, Lota D., Chebbi, Houssem Eddine, Abbassi, Abdessalem
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2016
Materias:
Acceso en línea:https://hdl.handle.net/10568/148527
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author Tamini, Lota D.
Chebbi, Houssem Eddine
Abbassi, Abdessalem
author_browse Abbassi, Abdessalem
Chebbi, Houssem Eddine
Tamini, Lota D.
author_facet Tamini, Lota D.
Chebbi, Houssem Eddine
Abbassi, Abdessalem
author_sort Tamini, Lota D.
collection Repository of Agricultural Research Outputs (CGSpace)
description The objective of this paper is to analyze trade potential versus actual realized trade among North African trading partners. Following the literature on production economics, we built a stochastic frontier gravity model. The underlying assumption is that all deviations from trade potential is not due to white noise but may also be due to inefficiencies. Time-variant country-specific trade efficiency estimates are obtained and analyzed. Our results indicate that Mauritania, as a country both of destination and of origin, is where the region’s trading relationship is the least efficient. Tunisia, followed by Morocco, faces the fewest behind- and beyond-the-border effects. Our analysis of market integration and trade efficiency at the disaggregated level indicates that trade efficiency scores exhibit high variability between categories of products. Moreover, North African market integration is worst when considering the goods from “Textiles; Footwear & Headgear” category. Our estimates indicate that trade efficiency for agricultural products is relatively low, indicating the existence of significant behind- and beyond-the-border inefficiencies. Our estimates also underline the importance of improving domestic policies to encourage entrepreneurial development and business facilities.
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spelling CGSpace1485272025-11-06T06:22:34Z Trade performance and potential of North African countries: An application of a stochastic frontier gravity model Tamini, Lota D. Chebbi, Houssem Eddine Abbassi, Abdessalem models trade policies trade stochastic models The objective of this paper is to analyze trade potential versus actual realized trade among North African trading partners. Following the literature on production economics, we built a stochastic frontier gravity model. The underlying assumption is that all deviations from trade potential is not due to white noise but may also be due to inefficiencies. Time-variant country-specific trade efficiency estimates are obtained and analyzed. Our results indicate that Mauritania, as a country both of destination and of origin, is where the region’s trading relationship is the least efficient. Tunisia, followed by Morocco, faces the fewest behind- and beyond-the-border effects. Our analysis of market integration and trade efficiency at the disaggregated level indicates that trade efficiency scores exhibit high variability between categories of products. Moreover, North African market integration is worst when considering the goods from “Textiles; Footwear & Headgear” category. Our estimates indicate that trade efficiency for agricultural products is relatively low, indicating the existence of significant behind- and beyond-the-border inefficiencies. Our estimates also underline the importance of improving domestic policies to encourage entrepreneurial development and business facilities. 2016-10-26 2024-06-21T09:24:56Z 2024-06-21T09:24:56Z Working Paper https://hdl.handle.net/10568/148527 en Open Access application/pdf International Food Policy Research Institute Tamini, Lota D.; Chebbi, Houssem Eddine; and Abbassi, Abdessalem. 2016. Trade performance and potential of North African countries: An application of a stochastic frontier gravity model. AGRODEP Working Paper 0033. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/148527
spellingShingle models
trade policies
trade
stochastic models
Tamini, Lota D.
Chebbi, Houssem Eddine
Abbassi, Abdessalem
Trade performance and potential of North African countries: An application of a stochastic frontier gravity model
title Trade performance and potential of North African countries: An application of a stochastic frontier gravity model
title_full Trade performance and potential of North African countries: An application of a stochastic frontier gravity model
title_fullStr Trade performance and potential of North African countries: An application of a stochastic frontier gravity model
title_full_unstemmed Trade performance and potential of North African countries: An application of a stochastic frontier gravity model
title_short Trade performance and potential of North African countries: An application of a stochastic frontier gravity model
title_sort trade performance and potential of north african countries an application of a stochastic frontier gravity model
topic models
trade policies
trade
stochastic models
url https://hdl.handle.net/10568/148527
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AT chebbihoussemeddine tradeperformanceandpotentialofnorthafricancountriesanapplicationofastochasticfrontiergravitymodel
AT abbassiabdessalem tradeperformanceandpotentialofnorthafricancountriesanapplicationofastochasticfrontiergravitymodel