Quantative analysis for improving the Côte d'Ivoire cocoa export through trade diversification
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Despite Côte d'Ivoire’s importance in the worldwide cocoa industry, there are very limited research suggested on the transformation of trade structure and that focuses on cocoa. In this regard, the purpose of this research is to analyze the competitive relationships between the countries of the trade transactions of cocoa in Côte d’Ivoire from 2009 to 2019. To achieve the research goal of this paper, this paper uses the Herfindahl-Hirschman index (HHI) analysis, and shift-share analysis. From the analysis of the HHI index, we can see that the data decreased from 0.21 to 0.15, which indicates total deconcentration between these countries, and the relationship between the countries is getting more and more intense. Second, a shift-share analysis (SSA) is used to analyze the relationship between countries. Through the SSA index analysis, it can be known that the trading of cocoa in Ghana performs best, with a shift effect of about USD 414,966,735 and an ABSGR value of USD 414,980,216. All reveal that the trading of cocoa in Côte d'Ivoire is in a certain relationship of deconcentration. Utilizing the research results, a transformation of the trade structure is suggested, and related stakeholders can refer to these research results when making strategies for importing and expoting cocoa.
Abstract
Despite Côte d'Ivoire’s importance in the worldwide cocoa industry, there are very limited research suggested on the transformation of trade structure and that focuses on cocoa. In this regard, the purpose of this research is to analyze the competitive relationships between the countries of the trade transactions of cocoa in Côte d’Ivoire from 2009 to 2019. To achieve the research goal of this paper, this paper uses the Herfindahl-Hirschman index (HHI) analysis, and shift-share analysis. From the analysis of the HHI index, we can see that the data decreased from 0.21 to 0.15, which indicates total deconcentration between these countries, and the relationship between the countries is getting more and more intense. Second, a shift-share analysis (SSA) is used to analyze the relationship between countries. Through the SSA index analysis, it can be known that the trading of cocoa in Ghana performs best, with a shift effect of about USD 414,966,735 and an ABSGR value of USD 414,980,216. All reveal that the trading of cocoa in Côte d'Ivoire is in a certain relationship of deconcentration. Utilizing the research results, a transformation of the trade structure is suggested, and related stakeholders can refer to these research results when making strategies for importing and expoting cocoa.
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