Price Variability, Co-integration and Leadership in the Market for Locally Produced Rice: A Case Study of Southwest Zone of Nigeria

Taiwo Mafimisebi (), B.O. Agunbiade and O.E. Mafimisebi

No 161464, 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia from African Association of Agricultural Economists (AAAE)

Abstract: Most studies on local rice in Nigeria were geared toward increasing production, consumption or competitiveness. Achieving these requires a study on extent of pricing contacts in the market for local rice. Secondary data consisting of urban monthly retail price series in the six southwest states of Nigeria were collected and analyzed. Analytical techniques included Augmented Dickey Fuller (ADF), Johansen Co-integration and Granger Causality models. Empirical results indicated that growth in retail prices was highest in 2004 and in Ogun (48.69%) and Ondo (45.36%) implying that local rice was more costly in these states. Retail prices were more volatile in Lagos (37.3%) while the least price volatility was recorded in Ogun (30.4%). The ADF test showed all price series were non-stationary at their levels but were stationary after first-difference. Pair-wise market integration model indicated that prices were co-integrated at either 1% or 5% levels of significance connoting high degree of marketing efficiency. Multiple co-integration model also indicated five co-integrating equations in six, at 5% level thus validating the result of pair-wise market co-integration tests. Granger causality model revealed that the supply-deficient markets in Lagos and Osun were driving prices in other states. These results may have arisen from the storability of rice and closeness of the market locations. Despite this very high level of linkage, there is the need for all stakeholders in the market to continue to effectively perform their roles so that economic benefits derivable from this scenario of strong pricing contacts can be fully realized and sustained.

Keywords: Agribusiness; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 14
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/161464/files/M ... afimisebi_%20O.E.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaae13:161464

DOI: 10.22004/ag.econ.161464

Access Statistics for this paper

More papers in 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia from African Association of Agricultural Economists (AAAE) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().