A MODEL FOR THE PALM OIL MARKET IN NIGERIA: AN ECONOMETRICS APPROACH

Henry Egwuma, Mad Nasir Shamsudin, Zainalabidin Mohamed, Nitty Hirawaty Kamarulzaman and Kelly Kai Seng Wong

International Journal of Food and Agricultural Economics (IJFAEC), 2016, vol. 04, issue 2, 17

Abstract: The aim of this study is to formulate and estimate a model for the palm oil market in Nigeria with a view to identifying principal factors that shape the Nigerian palm oil industry. Four structural equation models comprising palm oil production, import demand, domestic demand and producer price have been estimated using the autoregressive distributed lag (ARDL) cointegration approach over the 1970 to 2011 period. The results reveal that significant factors that influence the Nigerian palm oil industry include the own price, technological improvements, and income level. Government expenditure on agricultural development is also an important determinant, which underscores the need for government support in agriculture. Our model provides a useful framework for analyzing the effects of changes in major exogenous variables such as income or import tariff on the production, demand, and price of palm oil.

Keywords: Agricultural and Food Policy; Demand and Price Analysis; Financial Economics; Marketing; Production Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:234911

DOI: 10.22004/ag.econ.234911

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