Derick Taylor Adu

In June 2016, the United Kingdom (UK) voted to leave the European Union (EU), known as “Brexit,” which officially occurred on January 31, 2020. Brexit aimed to give the UK more freedom to renegotiate global trade relationships without EU constraints. Post-Brexit, multinational corporations faced increased manufacturing costs and stricter regulations, disrupting cross-border operations. This study examines Brexit’s impact on trade flows between the UK, the EU, and the rest of the world (ROW) using trade data from the BACI and CEPII Gravity Database (2000-2021). Employing a difference-in-difference approach within the gravity model framework and the Heckman selection model, the study finds a significant reduction in UK imports: 41% from the EU and 20% from the ROW. Durable goods imports decreased by 39% from the EU and 24% from the ROW, while non-durable goods saw decreases of 41% and 18%, respectively. UK exports also declined sharply: an 86% decrease to the EU and 47% to the ROW. Durable goods exports fell by 64% to the EU and 61% to the ROW, while non-durable goods exports dropped by 91% to the EU and 43% to the ROW. These findings highlight significant challenges for policymakers and businesses in adapting to the post-Brexit trade environment.

Reassessing the Role of Export Diversification in Driving Economic Growth in Sub-Saharan Africa

Many African countries experienced significant economic growth during the 2000s, a period often referred to as the “African economic renaissance.” To stimulate exports, foster economic development, and alleviate poverty, strategies focused on export specialization and diversification were implemented. In this study, we try to investigate the link amongst economic growth and export diversification among Sub-Saharan Africa (SSA) economies using data from 2000 - 2018. We employ the “Arellano-Bond difference generalized method-of-moments (GMM) estimator” to address potential simultaneity bias between economic growth and export diversification. The findings reveal an “inverted U-shaped relationship”, indicating that current levels of export diversification in SSA countries may exceed the threshold that optimizes economic growth. This suggests that while diversification has been beneficial, excessive diversification could potentially dilute growth benefits. Furthermore, the analysis emphasizes the vital importance of governance. Robust institutional frameworks are shown to substantially drive economic growth, whereas corruption poses a significant obstacle.

Work in Progress

Farmers’ Willingness to Accept Payment through the Novel Carbon Credit Program to Adopt a Conservation Practice in Alabama. (With Wendiam Sawadgo)

To combat the limited use of cover crops, private and public resources have been directed to supporting and promoting their adoption. In 2018, one-third of the acreage planted to a cover crop received a financial assistance payment from either federal, state, or other cost-share programs that support cover crop adoption. With the increasing number of these programs with varying payment rates, it is crucial to understand whether these programs are effective and what the optimal payment rate is from a cost-effectiveness perspective. This is especially true in the South, where the availability of state cost-share programs is limited in comparison to the Midwest. We address the knowledge gaps in literature by combining farmer survey, economic analysis, and econometric approaches to quantify how much farmers willingness to accept payment to adopt cover crop in the Southeastern US. This research is funded with a graduate student grant from the USDA’s Sustainable Agriculture Research and Education (SARE).

Book Chapters

The Policy environment of climate change adaptation (with John Kuwornu), In Climate Change and Sub-Saharan Africa: The Vulnerability and Adaptation of Food Supply Chain Actors; Kuwornu, J.K.M., Ed.; Series on Climate Change and Society; Vernon Press: Wilmington, DE, USA, 2019.
General Discussions on the vulnerability and adaptation of food supply chain actors to climate change (with John Kuwornu), In Climate Change and Sub-Saharan Africa: The Vulnerability and Adaptation of Food Supply Chain Actors; Kuwornu, J.K.M., Ed.; Series on Climate Change and Society; Vernon Press: Wilmington, DE, USA, 2019.
Smallholder maize farmers’ constraints to climate change adaptation strategies in the Brong-Ahafo Region of Ghana (with John Kuwornu, and Avishek Datta) In Climate Change and Sub-Saharan Africa: The Vulnerability and Adaptation of Food Supply Chain Actors; Kuwornu, J.K.M., Ed.; Series on Climate Change and Society; Vernon Press: Wilmington, DE, USA, 2019.

Conference Proceedings

Southern Agricultural Economics Association Meeting, Irving, Texas, USA. February 1-4, 2025.
Agricultural & Applied Economics Association Meeting, New Orleans, Louisiana USA. July 28-30, 2024.
Midwest International Trade Conference, Georgia Institute of Technology in Atlanta, USA. November 10-12, 2023.
Southern Agricultural Economics Association Annual Meeting, Oklahoma City, Oklahoma, USA. February 4-8, 2023.
Agricultural and Applied Economics Association Annual Meeting, Anaheim, California. USA. July 31-August 2, 2022.
MANRRS Annual National Conference Jacksonville, Florida, USA. March 23-26, 2022.
Applied Microeconomics Brown Bag, Department of Economics, Auburn University, AL, USA. September 23, 2020
Dialogue on Sustainability and Environmental Management, International Conference University of Ghana, Legon Accra, Ghana. February 15-16, 2017.

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