Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020

Oluwasefunmi Eunice Irewole; Enrique Armas Arévalos

doi:doi:10.11648/j.ijaas.20220803.13

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Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020

Oluwasefunmi Eunice Irewole, Enrique Armas Arévalos

Published in International Journal of Applied Agricultural Sciences (Volume 8, Issue 3)

Received: 28 April 2022 Accepted: 23 May 2022 Published: 31 May 2022

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Abstract

Agriculture has played a crucial role in the economy and the development of many countries. Moreover, the basic needs for human survival are; food, shelter and cloth are link on agricultural production. Most developed countries see that agriculture provides them with food and raw materials for different goods such as (shelter, medicine, fuel and clothing) which has led to increase in incomes, livelihoods and standard of living. This study aimed at analysing the relationship between International competitiveness of agricultural products, with area, fertilizer, labour force, economic growth, foreign direct investment, exchange rate and inflation rate in Latin America during the period of 1991-2019. In this study, panel data econometric method was used, as well as cross-section dependence (Pesaran test), unit root (cross-section Augumented Dickey Fuller and Cross-sectional Im, Pesaran, and Shin tests), cointergration (Pedroni and Fisher-Johansen tests), and heterogeneous causality (Pedroni and Fisher-Johansen tests) (Hurlin and Dumitrescu test). The results reveal that the model has cross-sectional dependency and that they are integrated at one I (1). The "fully modified OLS and dynamic OLS estimators" were used to examine the existence of a long-term relationship and it was found that a long-term relationship existed between the selected variables. The study revealed a positive significant relationship between International Competitiveness of the agricultural raw material and area, fertilizer, labour force, economic growth, foreign direct investment, while international competitiveness has negative relationship with exchange rate, and inflation. The economy policy recommendations deducted from this investigation is that Foreign Direct Investment and labour force have a positive contribution to the increase of International Competitiveness of agricultural products.

Published in	International Journal of Applied Agricultural Sciences (Volume 8, Issue 3)
DOI	10.11648/j.ijaas.20220803.13
Page(s)	121-132
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Revealed Comparative Advantage, Agricultural Products, Area, Fertilizer, Economic Growth, Granger Causality, Panel Unit Root

References

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Oluwasefunmi Eunice Irewole, Enrique Armas Arévalos. (2022). Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020. International Journal of Applied Agricultural Sciences, 8(3), 121-132. https://doi.org/10.11648/j.ijaas.20220803.13

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ACS Style

Oluwasefunmi Eunice Irewole; Enrique Armas Arévalos. Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020. Int. J. Appl. Agric. Sci. 2022, 8(3), 121-132. doi: 10.11648/j.ijaas.20220803.13

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Oluwasefunmi Eunice Irewole, Enrique Armas Arévalos. Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020. Int J Appl Agric Sci. 2022;8(3):121-132. doi: 10.11648/j.ijaas.20220803.13

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@article{10.11648/j.ijaas.20220803.13,
  author = {Oluwasefunmi Eunice Irewole and Enrique Armas Arévalos},
  title = {Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020},
  journal = {International Journal of Applied Agricultural Sciences},
  volume = {8},
  number = {3},
  pages = {121-132},
  doi = {10.11648/j.ijaas.20220803.13},
  url = {https://doi.org/10.11648/j.ijaas.20220803.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijaas.20220803.13},
  abstract = {Agriculture has played a crucial role in the economy and the development of many countries. Moreover, the basic needs for human survival are; food, shelter and cloth are link on agricultural production. Most developed countries see that agriculture provides them with food and raw materials for different goods such as (shelter, medicine, fuel and clothing) which has led to increase in incomes, livelihoods and standard of living. This study aimed at analysing the relationship between International competitiveness of agricultural products, with area, fertilizer, labour force, economic growth, foreign direct investment, exchange rate and inflation rate in Latin America during the period of 1991-2019. In this study, panel data econometric method was used, as well as cross-section dependence (Pesaran test), unit root (cross-section Augumented Dickey Fuller and Cross-sectional Im, Pesaran, and Shin tests), cointergration (Pedroni and Fisher-Johansen tests), and heterogeneous causality (Pedroni and Fisher-Johansen tests) (Hurlin and Dumitrescu test). The results reveal that the model has cross-sectional dependency and that they are integrated at one I (1). The "fully modified OLS and dynamic OLS estimators" were used to examine the existence of a long-term relationship and it was found that a long-term relationship existed between the selected variables. The study revealed a positive significant relationship between International Competitiveness of the agricultural raw material and area, fertilizer, labour force, economic growth, foreign direct investment, while international competitiveness has negative relationship with exchange rate, and inflation. The economy policy recommendations deducted from this investigation is that Foreign Direct Investment and labour force have a positive contribution to the increase of International Competitiveness of agricultural products.},
 year = {2022}
}

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TY  - JOUR
T1  - Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020
AU  - Oluwasefunmi Eunice Irewole
AU  - Enrique Armas Arévalos
Y1  - 2022/05/31
PY  - 2022
N1  - https://doi.org/10.11648/j.ijaas.20220803.13
DO  - 10.11648/j.ijaas.20220803.13
T2  - International Journal of Applied Agricultural Sciences
JF  - International Journal of Applied Agricultural Sciences
JO  - International Journal of Applied Agricultural Sciences
SP  - 121
EP  - 132
PB  - Science Publishing Group
SN  - 2469-7885
UR  - https://doi.org/10.11648/j.ijaas.20220803.13
AB  - Agriculture has played a crucial role in the economy and the development of many countries. Moreover, the basic needs for human survival are; food, shelter and cloth are link on agricultural production. Most developed countries see that agriculture provides them with food and raw materials for different goods such as (shelter, medicine, fuel and clothing) which has led to increase in incomes, livelihoods and standard of living. This study aimed at analysing the relationship between International competitiveness of agricultural products, with area, fertilizer, labour force, economic growth, foreign direct investment, exchange rate and inflation rate in Latin America during the period of 1991-2019. In this study, panel data econometric method was used, as well as cross-section dependence (Pesaran test), unit root (cross-section Augumented Dickey Fuller and Cross-sectional Im, Pesaran, and Shin tests), cointergration (Pedroni and Fisher-Johansen tests), and heterogeneous causality (Pedroni and Fisher-Johansen tests) (Hurlin and Dumitrescu test). The results reveal that the model has cross-sectional dependency and that they are integrated at one I (1). The "fully modified OLS and dynamic OLS estimators" were used to examine the existence of a long-term relationship and it was found that a long-term relationship existed between the selected variables. The study revealed a positive significant relationship between International Competitiveness of the agricultural raw material and area, fertilizer, labour force, economic growth, foreign direct investment, while international competitiveness has negative relationship with exchange rate, and inflation. The economy policy recommendations deducted from this investigation is that Foreign Direct Investment and labour force have a positive contribution to the increase of International Competitiveness of agricultural products.
VL  - 8
IS  - 3
ER  -

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Author Information

Oluwasefunmi Eunice Irewole

Institute of Economics and Business Research, Michoacán University of St. Nicolas Hidalgo, Morelia, México
Enrique Armas Arévalos

Institute of Economics and Business Research, Michoacán University of St. Nicolas Hidalgo, Morelia, México

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Oluwasefunmi Eunice Irewole, Enrique Armas Arévalos. (2022). Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020. International Journal of Applied Agricultural Sciences, 8(3), 121-132. https://doi.org/10.11648/j.ijaas.20220803.13

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ACS Style

Oluwasefunmi Eunice Irewole; Enrique Armas Arévalos. Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020. Int. J. Appl. Agric. Sci. 2022, 8(3), 121-132. doi: 10.11648/j.ijaas.20220803.13

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AMA Style

Oluwasefunmi Eunice Irewole, Enrique Armas Arévalos. Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020. Int J Appl Agric Sci. 2022;8(3):121-132. doi: 10.11648/j.ijaas.20220803.13

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@article{10.11648/j.ijaas.20220803.13,
  author = {Oluwasefunmi Eunice Irewole and Enrique Armas Arévalos},
  title = {Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020},
  journal = {International Journal of Applied Agricultural Sciences},
  volume = {8},
  number = {3},
  pages = {121-132},
  doi = {10.11648/j.ijaas.20220803.13},
  url = {https://doi.org/10.11648/j.ijaas.20220803.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijaas.20220803.13},
  abstract = {Agriculture has played a crucial role in the economy and the development of many countries. Moreover, the basic needs for human survival are; food, shelter and cloth are link on agricultural production. Most developed countries see that agriculture provides them with food and raw materials for different goods such as (shelter, medicine, fuel and clothing) which has led to increase in incomes, livelihoods and standard of living. This study aimed at analysing the relationship between International competitiveness of agricultural products, with area, fertilizer, labour force, economic growth, foreign direct investment, exchange rate and inflation rate in Latin America during the period of 1991-2019. In this study, panel data econometric method was used, as well as cross-section dependence (Pesaran test), unit root (cross-section Augumented Dickey Fuller and Cross-sectional Im, Pesaran, and Shin tests), cointergration (Pedroni and Fisher-Johansen tests), and heterogeneous causality (Pedroni and Fisher-Johansen tests) (Hurlin and Dumitrescu test). The results reveal that the model has cross-sectional dependency and that they are integrated at one I (1). The "fully modified OLS and dynamic OLS estimators" were used to examine the existence of a long-term relationship and it was found that a long-term relationship existed between the selected variables. The study revealed a positive significant relationship between International Competitiveness of the agricultural raw material and area, fertilizer, labour force, economic growth, foreign direct investment, while international competitiveness has negative relationship with exchange rate, and inflation. The economy policy recommendations deducted from this investigation is that Foreign Direct Investment and labour force have a positive contribution to the increase of International Competitiveness of agricultural products.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Factors That Determine International Competitiveness of Agricultural Products in Latin America 1990-2020
AU  - Oluwasefunmi Eunice Irewole
AU  - Enrique Armas Arévalos
Y1  - 2022/05/31
PY  - 2022
N1  - https://doi.org/10.11648/j.ijaas.20220803.13
DO  - 10.11648/j.ijaas.20220803.13
T2  - International Journal of Applied Agricultural Sciences
JF  - International Journal of Applied Agricultural Sciences
JO  - International Journal of Applied Agricultural Sciences
SP  - 121
EP  - 132
PB  - Science Publishing Group
SN  - 2469-7885
UR  - https://doi.org/10.11648/j.ijaas.20220803.13
AB  - Agriculture has played a crucial role in the economy and the development of many countries. Moreover, the basic needs for human survival are; food, shelter and cloth are link on agricultural production. Most developed countries see that agriculture provides them with food and raw materials for different goods such as (shelter, medicine, fuel and clothing) which has led to increase in incomes, livelihoods and standard of living. This study aimed at analysing the relationship between International competitiveness of agricultural products, with area, fertilizer, labour force, economic growth, foreign direct investment, exchange rate and inflation rate in Latin America during the period of 1991-2019. In this study, panel data econometric method was used, as well as cross-section dependence (Pesaran test), unit root (cross-section Augumented Dickey Fuller and Cross-sectional Im, Pesaran, and Shin tests), cointergration (Pedroni and Fisher-Johansen tests), and heterogeneous causality (Pedroni and Fisher-Johansen tests) (Hurlin and Dumitrescu test). The results reveal that the model has cross-sectional dependency and that they are integrated at one I (1). The "fully modified OLS and dynamic OLS estimators" were used to examine the existence of a long-term relationship and it was found that a long-term relationship existed between the selected variables. The study revealed a positive significant relationship between International Competitiveness of the agricultural raw material and area, fertilizer, labour force, economic growth, foreign direct investment, while international competitiveness has negative relationship with exchange rate, and inflation. The economy policy recommendations deducted from this investigation is that Foreign Direct Investment and labour force have a positive contribution to the increase of International Competitiveness of agricultural products.
VL  - 8
IS  - 3
ER  -

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