SPATIAL INTEGRATION OF MAIZE MARKET IN NIGERIA – A VECTOR ERROR CORRECTION MODEL

Agricultural commodities are produced over an extensive spatial area and are costly to transport relative to their total value as this inhibits efficient functioning of the markets. The study examined spatial market integration among geographically separated maize markets in Nigeria using monthly retail price data of maize grain from January 2001 – December 2010 in the selected producing and consuming states. The data were analyzed using Johansen co-integration and Vector error correction model (VECM). In the long run, the states were co-integrated and the rate at which VECM restored deviation from equilibrium was moderate. The study showed that spatial price linkages exist within maize market as products moved efficiently across market which is related to efficiency of price information flow. The study recommends that farmers should be provided with more price information in order to take advantage of spatial price differences.


Issue Date:
2014-07
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 2147-8988 (Other)
Record Identifier:
http://ageconsearch.umn.edu/record/186268
PURL Identifier:
http://purl.umn.edu/186268
Published in:
International Journal of Food and Agricultural Economics (IJFAEC), Volume 02, Number 3
Page range:
71-80
Total Pages:
10
Series Statement:
Vol 2
No 3




 Record created 2017-04-01, last modified 2018-03-29

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