TITLE:
Infrastructure and Coffee Exports’ Fluctuations in a Small Open Economy: Case of Togolese Economy
AUTHORS:
Tom-Irazou Tchalim
KEYWORDS:
Coffee, Export, Gravity Model, Togo
JOURNAL NAME:
Modern Economy,
Vol.7 No.12,
November
8,
2016
ABSTRACT: In the current context of boosting economic growth
based on agriculture, the traditional determinants seem insufficient. It is therefore necessary
to establish the role of non-classical factors that influence the evolution of
agricultural exports. Thus, this paper aims to establish the role of
transportation infrastructure in
determining coffee exports in Togo’s economy. Firstly,
the principal component analysis technique is used to construct a proxy of
transportation infrastructure. Then
the Error Correction Model is estimated under the gravity model framework. The data used in this study come
mainly from FAO database, World Bank database and cover the period 1980-2014. The
results reveal that transportation infrastructure is a
good pillar for coffee exports enhancement
in the short and long run. In addition, domestic production has a
positive and significant effect on coffee exports. Regarding global factors,
only the exchange rate affects long-term coffee exports. In terms of policy
message, increase in transportation infrastructure investment is a strategy for
increasing coffee exports.