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CHAPTER FIVE EMPIRICAL ANALYSIS

5.2 Presentation of the Results

5.2.1 Extent of IIT between ECOWAS and EU

5.2.1.1 Final Products

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sector was 0.28 in 2001 and it increased to 0.43 in 2011. Some of the specific products in which IIT occurred between Ghana and EU in final products are bells, gongs and the like, stranded wire, ropes and cables, cast iron, hedge shears and pruning. Others are treading and tapping tool etc. The Plastics and Plastics Articles is another industry in which Ghana has substantial IIT with the EU. Although, the IIT in the Plastics and Plastics Articles industry is calculated to be 0.0031 in 2001, which second to the lowest in Ghana, it has since increased to 0.4958 in 2011. The products in this sector include:

lavatory seats, lavatory cover, tableware, and kitchen ware etc.

Ghana also has IIT in raw hides and skins, leather with the EU. The value of Ghana‘s IIT with EU in raw hides and skins, leather was 0.0562 in 2001; this has increased to 0.4134 in 2011. The products that have IIT in raw hides and skins are handbags and belts.

Although Ghana is known to be agriculturally endowed economy, its IIT with EU in animals; animal products and vegetable products are low. The IIT in Animals and Animal Products between Ghana and EU was 0.0667 in 2001 and was increased to 0.1422 in 2004. Although, there was a decline in animals and animal products intra-industry between Ghana and EU to 0.0003 in 2005, IIT in the sector became 0.2827 in 2011. Despite the fact that the magnitude of IIT in animals and animal products is low, the products in which IIT occurred in the sector include: smoked fish, cuttle fish, frozen crabs, natural honey, tunas and other.

Similarly, Ghana and EU IIT in Vegetable Products was 0.0880 in 2001. It increased gradually to 0.2210 in 2011. The following products in the Vegetable Products sector have IIT: guavas, mangoes, mangosteens, aubergines (egg-plants), and pepper. Others are beans, spinach, cashew nuts, onions, mushrooms truffles, lemons, ginger, shallots and other. For IIT in prepared foodstuffs and beverages sector between Ghana and EU, it increased from 0.0027 in 2001 to 0.2846 in 2011. And the products in this sector include sparkling wine, mineral water, aerated water, doughs, homogenised composite food, pasta, nuts, ground-nuts, infant food, crispbread, soups and broths, cocoa powder, juice, beer made from malt, fermented beverage, pineapples, and vinegars etc.

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Table 5.4 Ghana’s Intra Industry Trade in Final Products

Harmonized System Code List 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Animals; Animal Products 0.0667 0.0726 0.1921 0.1422 0.0003 0.1412 0.1982 0.2146 0.2426 0.2239 0.2827 Vegetable Products 0.0880 0.1032 0.1312 0.1503 0.2924 0.2616 0.2506 0.2134 0.1838 0.2635 0.2210

Animal or Vegetable Fats Non Non Non Non Non Non Non Non Non non Non

Prepared Foodstuffs; Beverages 0.0027 0.0032 0.0171 0.3013 0.1977 0.2349 0.1907 0.2281 0.1710 0.2022 0.2846

Mineral Products non non Non non non non non Non non non non

Products of the Chemicals 0.0267 0.0707 0.0881 0.1018 0.4259 0.2891 0.1215 0.3207 0.1657 0.1293 0.2503 Plastics and Articles thereof 0.0031 0.0121 0.0154 0.0185 0.0234 0.0240 0.1592 0.1774 0.2188 0.2279 0.4958 Raw Hides and Skins, Leather 0.0562 0.0661 0.1099 0.1141 0.1519 0.1807 0.2192 0.2439 0.3854 0.4051 0.4134 Wood and Articles of Wood 0.1079 0.1209 0.1232 0.1238 0.1371 0.1873 0.2131 0.2174 0.2209 0.2688 0.3462 Pulp of wood and Fibrous 0.0453 0.0520 0.0534 0.1019 0.1073 0.1211 0.1389 0.1994 0.3102 0.3278 0.3320 Textile and Textile Articles 0.1279 0.1552 0.1620 0.1684 0.1906 0.1906 0.2283 0.2285 0.2390 0.2496 0.2516 Footwear, Headgear, Umbrellas 0.1093 0.1102 0.1145 0.1152 0.1442 0.1601 0.2556 0.2700 0.3012 0.3254 0.3556 Articles of Stone, Plaster, Cement 0.0991 0.1088 0.1189 0.1509 0.1761 0.1776 0.1779 0.1852 0.1935 0.2557 0.2758 Natural Precious Stones 0.0011 0.0044 0.0185 0.0361 0.0936 0.1723 0.2169 0.1552 0.1102 0.1088 0.1412 Base Metals and Articles 0.2846 0.3166 0.3310 0.3577 0.3687 0.3787 0.3809 0.3882 0.4232 0.4293 0.4321 FINAL PRODUCTS 0.0679 0.0797 0.0983 0.1388 0.1539 0.1679 0.1834 0.2028 0.2110 0.2278 0.2722

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(ii) Cote d’Ivoire’s IIT in Final Products

The level of IIT in final products between Cote d‘Ivoire and EU is quite appreciable considering the fact that it is vertical trade that exists between the two countries. IIT in final products between Cote d‘Ivoire and EU rose from 0.2465 in 2001 to 0.3712 in 2011. Nilsson (1999) earlier reported 0.57 IIT between the EU and Developing countries.

Variations occurred in IIT between Cote d‘Ivoire and EU in the various sectors considered.

Although it is only one product that Cote d‘Ivoire has IIT with EU in the Mineral products sector, the sector recorded the highest magnitude of IIT between 2001 and 2011. The only product in which the sector recorded intra-industry is petroleum oils.

Moreover, the sector in which Cote d‘Ivoire has the second highest IIT in final product with EU is vegetable products. IIT in the sector rose from 0.2191 in 2001 to 0.6363 in 2011. This sector has the highest number of products that recorded IIT in Cote d‘Ivoire trade with EU. Some of the products in this sector that recorded IIT are onions, shallots, garlic, cauliflowers, headed broccoli, brussels sprouts, lettuce, fruits of the genus capsicum, spinach, leguminous vegetable, mushrooms, truffles, chickpea, cashew, almond, hazelnuts.

Another sector in which Cote d‘Ivoire has IIT in final products is Wood and Articles of Wood. The sector has intra-industry of 0.4079 in 2001 but it declined to 0.2904 in 2011.

Some of the products in the sector are tableware and kitchenware, of wood, and statuettes and other ornaments. Prepared foodstuffs; beverages is another sector that Cote d‘Ivore has IIT with EU. The sector has IIT that ranged between 0.3491and 0.4639, in the period 2001 and 2011. Some of the food in the sector includes Fish, whole or in pieces, but not minced-tunas, skipjack and bonito, nuts, ground-nuts and other seeds, pineapples etc.

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Table 5.5. Cote d’Ivoire’s Intra Industry Trade in Final Products

Harmonized System Code List 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Animals; Animal Products Non Non Non Non Non Non Non non Non non non

Vegetable Products 0.2191 0.0309 0.4317 0.6035 0.5459 0.6195 0.5790 0.4849 0.5084 0.5206 0.6363 Animal or Vegetable Fats 0.0896 0.1536 0.2162 0.1877 0.2153 0.2676 0.2007 0.2811 0.3254 0.4944 0.4187 Prepared Foodstuffs; Beverages 0.3491 0.3610 0.2248 0.3394 0.3187 0.3030 0.4434 0.4733 0.3510 0.4639 0.4153 Mineral Products 0.8886 0.5900 0.9505 0.4590 0.5144 0.7197 0.4384 0.8987 0.9209 0.5333 0.6545 Products of the Chemicals 0.2343 0.2743 0.3195 0.2689 0.3205 0.4681 0.4534 0.3186 0.5583 0.3040 0.1575

Plastics and Articles thereof Non Non Non Non Non Non Non non Non non non

Raw Hides and Skins, Leather 0.1843 0.5584 0.1348 0.1255 0.1393 0.1356 0.1894 0.0279 0.3217 0.1341 0.3422 Wood and Articles of Wood 0.4079 0.3728 0.2118 0.3943 0.1956 0.2056 0.1806 0.2555 0.6322 0.3076 0.2914 Pulp of wood and Fibrous 0.1047 0.1362 0.1469 0.1729 0.1878 0.2025 0.3589 0.1557 0.2628 0.2728 0.2904 Textile and Textile Articles 0.2567 0.3137 0.2654 0.3674 0.4132 0.3646 0.2032 0.2781 0.3864 0.2696 0.3515 Footwear, Headgear, Umbrellas 0.1159 0.0827 0.2914 0.1362 0.1619 0.1022 0.2761 0.2162 0.2115 0.3324 0.2299 Articles of Stone, Plaster, Cement 0.0825 0.1751 0.2665 0.1954 0.0720 0.1070 0.3797 0.0129 0.2244 0.4915 0.5212 Natural or Cultured Pearls, Precious Stones 0.1382 0.2987 0.4362 0.2189 0.2138 0.2174 0.0417 0.0878 0.0458 0.5188 0.5144 Base Metals and Articles of Base Metal 0.1265 0.3179 0.2197 0.3710 0.3300 0.1663 0.2128 0.2087 0.4941 0.3742 0.4442

FINAL PRODUCTS 0.2465 0.2444 0.2744 0.2560 0.2419 0.2586 0.2638 0.2466 0.3495 0.3345 0.3712

Source: Author’s computation: underlying annual data from World Integrated Trade Indicators (WITS)

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(iii) Nigeria’s IIT in Final Products

Out of the 15 industries considered, Nigeria did not record IIT with the EU in four sectors. These sectors are Animal or Vegetable Fats, Raw Hides and Skins, Leather and Natural Precious Stones, Natural Precious Stones. The IIT in final products between Nigeria and EU is shows in Table 5.6. Variations occurred in IIT between Nigeria and EU in the various sectors considered. Although it was small, IIT between Nigeria and EU occurred in animals; animal products and it ranged between 0.0079 and 0.0628 between 2001 and 2011. The specific products in animal and animal products that have IIT include: granules, added sugar, powder sugar, natural honey, pacific salmon, fat content and frozen fillets. Similarly, Nigeria IIT with EU in vegetable products was very small in 2001 but rose to 0.3851 in 2011. And the vegetable products that recorded IIT are dates, fresh vegetables, mixtures of vegetables and other vegetables.

The magnitude of Nigeria‘s IIT with EU, in products of the chemicals was also small in the early 2000s. It however increased from 0.1538 in 2004 to 0.7835 in 2011. Someof the products in the products of the chemicals sector in which Nigeria has IIT are chlorine, sulphuric, potassium, ammonium chloride etc. Nigeria IIT with EU in base metals and articles of base metal is equally substantial between 2000 and 2011. It ranges between 0.2078 and 0.7339. Some of the product includes ceramics, slivers and diamonds etc. IIT between Nigeria and EU in textile and textile articles was low between 2000 and 2011. It ranges between 0.0756 and 0.2964 between 2000 and 2011.

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Table 5.6. Nigeria’s Intra Industry Trade in Final Products

Harmonized System Code List 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Animals; Animal Products 0.0999 0.1151 0.1238 0.1412 0.2727 0.1374 0.2898 0.1175 0.2462 0.2987 0.2634 0.1749 Vegetable Products 0.0244 0.0969 0.2674 0.1372 0.1957 0.1331 0.1574 0.2089 0.2983 0.2745 0.3120 0.7455

Animal or Vegetable Fats Non Non Non Non Non Non non Non Non Non non non

Prepared Foodstuffs; Beverages 0.0244 0.1282 0.0455 0.0245 0.0679 0.0766 0.1467 0.2871 0.1596 0.1975 0.1548 0.1768 Mineral Products 0.0256 0.1651 0.0257 0.0406 0.1327 0.1072 0.1394 0.1556 0.1055 0.2351 0.2187 0.7835 Products of the Chemicals 0.0026 0.0089 0.1698 0.1617 0.1538 0.6777 0.9607 0.3885 0.5781 0.2685 0.1804 0.7606 Plastics and Articles thereof 0.0192 0.0435 0.0284 0.1228 0.2420 0.2532 0.3866 0.4917 0.1081 0.5096 0.2420 0.2532

Raw Hides and Skins, Leather Non Non Non Non Non Non non Non Non Non non non

Wood and Articles of Wood 0.1895 0.0711 0.1665 0.1653 0.1465 0.1456 0.2708 0.3913 0.4937 0.8653 0.9256 0.9812 Pulp of wood and Fibrous 0.0007 0.0011 0.3893 0.4163 0.8059 0.4609 0.7202 0.5819 0.6087 0.7732 0.8893 0.9727 Textile and Textile Articles 0.1287 0.2906 0.2391 0.2993 0.2671 0.2797 0.2539 0.0756 0.1108 0.2423 0.1493 0.2964 Footwear, Headgear, Umbrellas 0.1203 0.4989 0.4657 0.7423 0.5333 0.7290 0.0353 0.2372 0.5538 0.7706 0.8855 0.1680

Articles of Stone, Plaster, Cement Non Non Non Non Non Non non non Non Non non non

Natural Precious Stones Non Non Non Non Non Non non non Non Non non non

Base Metals and Articles of Base Metal 0.5877 0.3768 0.7963 0.3296 0.7339 0.3595 0.4140 0.2078 0.6443 0.6551 0.5559 0.4650 FINAL PRODUCTS 0.0471 0.1455 0.1212 0.1234 0.1654 0.1573 0.1369 0.1759 0.2458 0.2281 0.2733 0.3851

Source: Author’s computation: underlying annual data from World Integrated Trade Indicators (WITS)

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