Food Commodities Prices and Its Implication on Food Security In Nigeria: (1970-2012)

Authors

  • Dr Samuel O. Binuomote  Department of Agricultural Economics, Ladoke Akintola University of Technology, P. M. B. 4000, Ogbomoso. Nigeria
  • Tolulope Olawuyi  Department of Agricultural Economics, Ladoke Akintola University of Technology, P. M. B. 4000, Ogbomoso. Nigeria

Keywords:

Rice, Wheat, ARDL, Cointegration, Price

Abstract

This study examined the movements in prices of the selected food crops over the period of 1970-2012 in Nigeria. Data from secondary sources such as Central Bank of Nigeria Statistical Bulletin and the Food and Agricultural Organization of United Nations Statistical online database were used in the study. The data used include; Nigeria’s estimated per capita food production figures, per capita income, exchange rate, and the real retail prices of the three food crops studied which are Rice, Maize, and Wheat. Unit root test, autoregressive distributed lags modeling approach to cointegration were employed for the empirical data analysis. The unit root test shows that all the variables have unit root except for maize price, wheat price and per capital income which are all stationary at levels. Examination of the cointegration properties of the variables for both rice and wheat real prices show that all the variables specified in each of the models are cointegrated. Error correction modeling of rice and wheat real prices show that real exchange rate, inflation, per capita output, per capita income and inflation are the main determinants of real prices of rice and wheat in Nigeria. While the error correction mechanism (ECM) was found to have values of 0.819 and 0.652 which were both significant at 1%, rice, wheat and maize were found to be close substitute food crops in Nigeria.

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International Journal of Scientific Research in Science and Technology

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Published

2016-08-31

Issue

Volume 2, Issue 4, July-August-2016

Section

Research Articles

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How to Cite

[1]
Dr Samuel O. Binuomote, Tolulope Olawuyi, " Food Commodities Prices and Its Implication on Food Security In Nigeria: (1970-2012), International Journal of Scientific Research in Science and Technology(IJSRST), Online ISSN : 2395-602X, Print ISSN : 2395-6011, Volume 2, Issue 4, pp.293-304, July-August-2016.