Supply Response, Risk and Institutional Change in Nigerian Agriculture
Joshua Olusegun Ajetomobi
No RP_197, Research Papers from African Economic Research Consortium
Nigeria is among many African countries that have engaged in agricultural liberalization since 1986 in the hope that reforms emphasizing price incentives will encourage producers to respond. Hitherto, the reforms seem to have introduced greater uncertainty into the market given increasing rates of price volatility. This study therefore models supply responses in Nigerian agriculture that include the standard arguments as well as price risk. The data come from the AGROSTAT system of the statistical division of the Food and Agriculture Organization (FAO), Federal Ministry of Agriculture statistical bulletins, Central Bank of Nigeria statistical bulletins, Federal Offi ce of Statistics Agricultural Survey Manual and the World Bank Africa Development Indicators. The data are analysed using autoregressive distributed lag and error correction models. The results indicate that producers are more responsive not only to price but to price risk and exchange rate in the structural adjustment programme (SAP) period than in the commodity marketing board (CMB) period. Following deregulation, price risk needs to be meaningfully reduced for pulse and export crops, especially cowpea and cocoa.
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://www.aercafrica.org/documents/RP197.pdf [301 Moved Permanently]--> http://aercafrica.org/documents/RP197.pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:aer:rpaper:rp_197
Access Statistics for this paper
More papers in Research Papers from African Economic Research Consortium Contact information at EDIRC.
Series data maintained by winston wachanga ().