Analyzing the effect of trade liberalization policy on Nigerian rubber industry
2008
Mesike, C.S. (Rubber Research Institute of Nigeria, Benin City (Nigeria)) | Giroh, D.Y. (Rubber Research Institute of Nigeria, Benin City (Nigeria)) | Owie, O.E.D. (Rubber Research Institute of Nigeria, Benin City (Nigeria))
The liberalization of trade has exposed Nigerian rubber to the fluctuations in global rubber prices and the instability in the natural rubber prices has been a disincentive for rubber production and exports. Underlying factors in the export of natural rubber as a sub-sector of agriculture are investigated using secondary data from Nigeria during 1960- 2004 and primary data from 120 farmers and analyzed using descriptive statistics and multiple regression. Result revealed that output and producers price exerted positive effects on export supply that is a rise in output and producer's price would cause exporters to export more natural rubber. However, domestic consumption quantity and annual rainfall were disincentives to rubber exporters. Rubber producers also experienced a multiplicity of problems, which centered on inputs used in rubber production and aged rubber trees.
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