Impact Of Market-Determined Exchange Rates On Rice Production And Import In Nigeria
Rice is an economically important food security crop, cultivated in almost all of Nigeriaâ€™s 36 States. Nigeria spends more than 356 billion naira (2.24 billion US dollars) annually on rice import. This paper set out to analyze the trend in rice production, productivity, import, value of import and consumption that follows the adoption of the Structural Adjustment Programme (SAP) in Nigeria, with emphasis on the effects of exchange rate (ER) deregulation on domestic rice production and rice imports over the period 1986-2010. Relevant time series data were collected and used. A semi-log growth rate model and 2simple linear regression models were developed and estimated. Highlights of the findings include (i) accelerated rate of growth in rice production (Instantaneous Growth Rate (IGR) 2.2%; Cumulative Growth Rate (CGR) 2.2%); rice hectarage (IGR 3.7%; CGR 3.8%); rice importation (IGR 8.5%; CGR8.9%); expenditure on rice importation (IGR 10.6%; CGR 11.2%) and rice consumption (IGR 3.4%; CGR 3.5%) alongside a significant deceleration in rice yield (IGR -1.4%; CGR -201.4%) (ii) The observed significant increase in domestic rice production cannot be confidently attributed to ER deregulation alone because it does not lead to a decrease in rice importation into Nigeria. (iii) The significant increase in domestic rice importation as observed contradicts a priori expectation that ER deregulation will lead to significant decrease in rice importation. The study concluded that free market approach alone cannot stimulate local agricultural production in countries where farmers producing under low-technology-agriculture are put in direct competition with farmers from advanced-technology-agriculture; hence governments need to restrict importation to protect local producers
Volume (Year): 1 (2)
Issue (Month): ()
|Contact details of provider:|| Web page: http://www.foodandagriculturejournal.com/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mohsen Bahmani-Oskooee & Orhan Kara, 2003. "Relative Responsiveness of Trade Flows to a Change in Prices and Exchange Rate," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(3), pages 293-308.
- Alberto Alesina & Dani Rodrik, 1994.
"Distributive Politics and Economic Growth,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 109(2), pages 465-490.
- Alberto Alesina & Dani Rodrik, 1991. "Distributive Politics and Economic Growth," NBER Working Papers 3668, National Bureau of Economic Research, Inc.
- Rodrik, Dani & Alesina, Alberto, 1994. "Distributive Politics and Economic Growth," Scholarly Articles 4551798, Harvard University Department of Economics.
- Alesina, Alberto F & Rodrik, Dani, 1991. "Distributive Politics and Economic Growth," CEPR Discussion Papers 565, C.E.P.R. Discussion Papers.
- WenShwo Fang & YiHao Lai & Stephen M. Miller, 2005. "Export Promotion through Exchange Rate Policy: Exchange Rate Depreciation or Stabilization?," Working papers 2005-07, University of Connecticut, Department of Economics.
- Besley, Timothy & Coate, Stephen, 1998. "Sources of Inefficiency in a Representative Democracy: A Dynamic Analysis," American Economic Review, American Economic Association, vol. 88(1), pages 139-156, March.
- North, Douglass C. & Weingast, Barry R., 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 803-832, December. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ags:ijfaec:160097. 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: (AgEcon Search)
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.