DISCOVERY OF MAIZE PRICE AND FOOD CROP MARKET DYNAMICS IN NIGERIA
Having the mandate of achieving food security in Nigeria, commendable efforts have been geared towards food production in the nation. Albeit the increasing production, price volatility has continued to perpetuate in food markets in Nigeria hence attaining food affordability, a precondition for food...
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Slovak University of Agriculture
2019-03-01
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doaj-42c59d85d5344763a27c3d6d31209bc82020-11-25T01:31:16ZengSlovak University of AgricultureReview of Agricultural and Applied Economics1336-92612019-03-01221516410.15414/raae.2019.22.01.51-641009-1DISCOVERY OF MAIZE PRICE AND FOOD CROP MARKET DYNAMICS IN NIGERIAToyin Benedict AJIBADEOpeyemi Eyitayo AYINDETahirou ABDOULAYEHaving the mandate of achieving food security in Nigeria, commendable efforts have been geared towards food production in the nation. Albeit the increasing production, price volatility has continued to perpetuate in food markets in Nigeria hence attaining food affordability, a precondition for food security, remains a mirage. An innovative approach to the food challenge therefore, may be to understand the food markets dynamics such as to gain insight into how the market works. In this study we focus on maize, a very important staple in Nigeria. We seek to identify the point of price discovery and markets that significantly influence price of maize. In furtherance, we examine the dynamic relationship existing among the markets and explored the responsiveness of the markets to price signals from the other markets. Our results showed that most of the markets examined behave in such a manner expected of open market however full market integration has not been achieved. It was revealed that prices of maize are discovered from major food market in the deficit production zone. Majority of the markets were responsive to one-time price shock from itself, although exhibiting exogeneity in the contemporaneous period but becoming endogenous by the long run (whereby other markets majorly influenced prices) hence indicating that the markets had commendable informational influence on one another. The study therefore recommended installing infrastructure for linkage of production with the demand zones if price stabilization is to be achieved. Regulatory bodies should also check activities of cartels in the influential markets.https://roaae.org/wp-content/uploads/RAAE_1_2019_Ajibade_et_al.pdfAgricultural MarketsFood cropImpulse response functionPrice discoveryVariance decomposition |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Toyin Benedict AJIBADE Opeyemi Eyitayo AYINDE Tahirou ABDOULAYE |
spellingShingle |
Toyin Benedict AJIBADE Opeyemi Eyitayo AYINDE Tahirou ABDOULAYE DISCOVERY OF MAIZE PRICE AND FOOD CROP MARKET DYNAMICS IN NIGERIA Review of Agricultural and Applied Economics Agricultural Markets Food crop Impulse response function Price discovery Variance decomposition |
author_facet |
Toyin Benedict AJIBADE Opeyemi Eyitayo AYINDE Tahirou ABDOULAYE |
author_sort |
Toyin Benedict AJIBADE |
title |
DISCOVERY OF MAIZE PRICE AND FOOD CROP MARKET DYNAMICS IN NIGERIA |
title_short |
DISCOVERY OF MAIZE PRICE AND FOOD CROP MARKET DYNAMICS IN NIGERIA |
title_full |
DISCOVERY OF MAIZE PRICE AND FOOD CROP MARKET DYNAMICS IN NIGERIA |
title_fullStr |
DISCOVERY OF MAIZE PRICE AND FOOD CROP MARKET DYNAMICS IN NIGERIA |
title_full_unstemmed |
DISCOVERY OF MAIZE PRICE AND FOOD CROP MARKET DYNAMICS IN NIGERIA |
title_sort |
discovery of maize price and food crop market dynamics in nigeria |
publisher |
Slovak University of Agriculture |
series |
Review of Agricultural and Applied Economics |
issn |
1336-9261 |
publishDate |
2019-03-01 |
description |
Having the mandate of achieving food security in Nigeria, commendable efforts have been geared towards food production in the nation. Albeit the increasing production, price volatility has continued to perpetuate in food markets in Nigeria hence attaining food affordability, a precondition for food security, remains a mirage. An innovative approach to the food challenge therefore, may be to understand the food markets dynamics such as to gain insight into how the market works. In this study we focus on maize, a very important staple in Nigeria. We seek to identify the point of price discovery and markets that significantly influence price of maize. In furtherance, we examine the dynamic relationship existing among the markets and explored the responsiveness of the markets to price signals from the other markets. Our results showed that most of the markets examined behave in such a manner expected of open market however full market integration has not been achieved. It was revealed that prices of maize are discovered from major food market in the deficit production zone. Majority of the markets were responsive to one-time price shock from itself, although exhibiting exogeneity in the contemporaneous period but becoming endogenous by the long run (whereby other markets majorly influenced prices) hence indicating that the markets had commendable informational influence on one another. The study therefore recommended installing infrastructure for linkage of production with the demand zones if price stabilization is to be achieved. Regulatory bodies should also check activities of cartels in the influential markets. |
topic |
Agricultural Markets Food crop Impulse response function Price discovery Variance decomposition |
url |
https://roaae.org/wp-content/uploads/RAAE_1_2019_Ajibade_et_al.pdf |
work_keys_str_mv |
AT toyinbenedictajibade discoveryofmaizepriceandfoodcropmarketdynamicsinnigeria AT opeyemieyitayoayinde discoveryofmaizepriceandfoodcropmarketdynamicsinnigeria AT tahirouabdoulaye discoveryofmaizepriceandfoodcropmarketdynamicsinnigeria |
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