Advanced Search
MyIDEAS: Login

The integration of Nigeria's rural and urban foodstuffs markets

Contents:

Author Info

  • Rosemary N. Okoh
  • P.C. Egbon
Registered author(s):

    Abstract

    The study intended to determine the presence and level of integration of the rural and urban foodstuffs markets of Nigeria. A central prediction of the law of one price is that prices of all transactions will tend to uniformity, allowing for the transportation cost between different spatial markets. Using the Johansen bivariate test of cointegration, it was established that the rural and urban foodstuffs markets are pair-wise cointegrated. The test for convergence to the law of one price as well as the test for weak exogeneity for urban foodstuffs prices (Y1) could not be rejected at the 1% level of significance. Hence, we conclude that the rural and urban foodstuffs markets are well integrated and are in the same market for arbitrage. The results further suggest that the urban market price drives the rural market price. The size of the adjustment coefficient for the rural foodstuffs price (Y2) shows that the speed of adjustment to disequilibrium is moderate. The persistence profile further shows that it would take about five months for the effects of a shock on the market system to die out. The findings of this research have significant policy implications for Nigeria’s domestic foodstuffs market system as well as its international trade policies.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.aercafrica.org/documents/RP151.pdf
    Our checks indicate that this address may not be valid because: 403 Forbidden. If this is indeed the case, please notify (winston wachanga)
    Download Restriction: no

    Bibliographic Info

    Paper provided by African Economic Research Consortium in its series Research Papers with number RP_151.

    as in new window
    Length: 52 pages
    Date of creation: Nov 2005
    Date of revision:
    Handle: RePEc:aer:rpaper:rp_151

    Contact details of provider:
    Postal: P.O. Box 62882, Nairobi
    Phone: (254-2) 228057
    Fax: (254-2) 219308
    Email:
    Web page: http://www.aercafrica.org
    More information through EDIRC

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:aer:rpaper:rp_151. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (winston wachanga).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.