Trade Policy Incentives, Market Structure and Productivity

Folarin Alayande* and Dr. Wumi Olayiwola
Additional contact information
Folarin Alayande*: Senior Special Assistant to the President/ Department of Economics and Development Studies Covenant University, Nigeria
Dr. Wumi Olayiwola: ECOWAS Abuja, Nigeria

The Journal of Social Sciences Research, 2019, vol. 5, issue 7, 1106-1122

Abstract: Trade policy incentives are drivers of within-sector productivity growth and rapid industrial transformation in many developing countries. In many African countries, the use of tariffs, trade prohibitions and a package of fiscal policy incentives are therefore components of industrialisation and backward integration programmes to accelerate the performance of priority sectors. However, the effectiveness of these policy instruments within specific industries, and the transmission mechanism of policy incentives to productivity has not been adequately explored in the literature. By focusing on oligopolistic market structure of the cement industry in Nigeria, this paper analysed the relative impact of trade policy incentives and market structure on the within-sector productivity. Using the autoregressive distributed lag model with structural breaks, the study finds that producer concentration ratio is the most significant driver of productivity. While the trade policy incentive indexed by effective rate of protection (ERP), and financing subsidies also impact productivity improvements, the magnitudes are significantly lower. The overwhelming significance of market structure nuance earlier research studies and provide new insights into the nexus between trade incentives and productivity in an oligopolistic industry.

Keywords: Trade policy; Trade incentives; Productivity; Industrial policy; Market structure. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.arpgweb.com/pdf-files/jssr5(7)1106-1122.pdf (application/pdf)
https://www.arpgweb.com/journal/7/archive/07-2019/7/5 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arp:tjssrr:2019:p:1106-1122

Access Statistics for this article

The Journal of Social Sciences Research is currently edited by Dr. Paola Magnano

More articles in The Journal of Social Sciences Research from Academic Research Publishing Group Rahim Yar Khan 64200, Punjab, Pakistan.
Bibliographic data for series maintained by Managing Editor ().