IDEAS home Printed from https://ideas.repec.org/a/rom/merase/v10y2025i1p60-79.html
   My bibliography  Save this article

Food Prices and Food Production in Selected West African Countries: The Moderating Effect of Fragility

Author

Listed:
  • Naomi O. DOKI

    (Centre for Food Technology and Research (CEFTER), Department of Economics, Benue State University, Makurdi, Nigeria)

  • Bridget Ngodoo MILE

    (Centre for Food Technology and Research (CEFTER), Department of Economics, Benue State University, Makurdi, Nigeria)

  • Victor Ushahemba IJIRSHAR

    (Centre for Food Technology and Research (CEFTER), Department of Economics, Benue State University, Makurdi, Nigeria)

  • Ashifa TERSUGH

    (Centre for Food Technology and Research (CEFTER), Department of Economics, Benue State University, Makurdi, Nigeria)

Abstract

The relationship between food prices and production significantly shapes consumer affordability and producer income in low-to-middle-income nations. While increased prices can stimulate production, excessive fluctuations pose threats to financial stability and food security, especially in regions like West Africa prone to conflicts and disruptions. This study investigated the impact of food prices on food production in selected West African countries, exploring the moderating effect of fragility on this connection. Employing non-stationary heterogeneous panel models, including Pooled Mean Group (PMG), Mean Group (MG), and Dynamic Fixed Effect (DFE) estimators based on Hausman test results, the study revealed that agricultural lands and fertiliser application drive food production in the long run. Positive links are found between food prices, agricultural employment, and food production, with fragility moderating these relationships in some instances. The study also found that fragility negatively affects food production, showing its adverse influence in several West African nations. The study recommends that governments address fragility by focusing on conflict resolution, institution strengthening, and political stability. Additionally, it suggests promoting land management policies facilitating farmer access, encouraging fertiliser use, and implementing market-driven incentives to enhance price stability and market access for fair farmer compensation.

Suggested Citation

  • Naomi O. DOKI & Bridget Ngodoo MILE & Victor Ushahemba IJIRSHAR & Ashifa TERSUGH, 2025. "Food Prices and Food Production in Selected West African Countries: The Moderating Effect of Fragility," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(1), pages 60-79, February.
    • Handle: RePEc:rom:merase:v:10:y:2025:i:1:p:60-79
    as

    Download full text from publisher

    File URL: https://mer.ase.ro/files/2025-1/10-1-4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Derek D. Headey & William J. Martin, 2016. "The Impact of Food Prices on Poverty and Food Security," Annual Review of Resource Economics, Annual Reviews, vol. 8(1), pages 329-351, October.
    2. Anu K. Toriola, 2022. "Effects of Agricultural Commodity Prices on Agricultural Output in Nigeria," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 170-176.
    3. Newbery, David M, 1989. "The Theory of Food Price Stabilisation," Economic Journal, Royal Economic Society, vol. 99(398), pages 1065-1082, December.
    4. Loening, Josef L. & Durevall, Dick & Birru, Yohannes A., 2009. "Inflation dynamics and food prices in an agricultural economy : the case of Ethiopia," Policy Research Working Paper Series 4969, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bianca AVRAM POP & Simona SABOU, 2018. "The Role Of Agriculture In Romanian Development," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 5-18, March.
    2. Luboš Smutka & Michal Steininger & Mansoor Maitah & Eva Rosochatecká & Anna Belova & Salim Nassir, 2013. "Retail food prices in the Czech Republic - the influence of selected factors," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(2), pages 481-492.
    3. Kaplanoglou, Georgia & Newbery, David Michael, 2003. "Indirect Taxation in Greece: Evaluation and Possible Reform," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(5), pages 511-533, September.
    4. Minten, Bart & Stifel, David & Tamru, Seneshaw, 2012. "Structural transformation in Ethiopia: Evidence from cereal markets," ESSP working papers 39, International Food Policy Research Institute (IFPRI).
    5. Shigeru Akiyama & Masahiro Kawai, 1985. "Welfare implications of commodity price stabilization with partially flexible production, private storage and buffer-stock costs," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 121(2), pages 261-279, June.
    6. Fabienne Féménia & Alexandre Gohin, 2010. "Faut-il une intervention publique pour stabiliser les marchés agricoles ? Revue des questions non résolues," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(4), pages 435-456.
    7. Joshua Aizenman, 1986. "Labor Markets and the Choice of Technology in an Open Developing Economy," NBER Working Papers 1998, National Bureau of Economic Research, Inc.
    8. Akiyama, Takamasa & Varangis, Panayotis, 1989. "Impact of the International Coffee Agreement's export quota system on the World's coffee market," Policy Research Working Paper Series 148, The World Bank.
    9. Guillermo Cruces, 2005. "Income Fluctuations, Poverty and Well-Being Over Time: Theory and Application to Argentina," Labor and Demography 0502007, University Library of Munich, Germany.
    10. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
    11. Polinsky, A Mitchell, 1987. "Fixed Price versus Spot Price Contracts: A Study in Risk Allocation," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 3(1), pages 27-46, Spring.
    12. Chen, Li-Ju & Hu, Shih-Wen & Wang, Vey & Wen, Jiandong & Ye, Chusheng, 2014. "The effects of purchasing and price subsidy policies for agricultural products under target zones," Economic Modelling, Elsevier, vol. 43(C), pages 439-447.
    13. Josef Loening & Masato Higashi, 2011. "Decomposing terms of trade fluctuations in Ethiopia," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1219-1224.
    14. Kletzer, Kenneth M. & Newbery, David M. & Wright, Brian D., 1990. "Alternative instruments for smoothing the consumption of primary commodity exporters," Policy Research Working Paper Series 558, The World Bank.
    15. Kübra Akyol Özcan, 2023. "Food Price Bubbles: Food Price Indices of Turkey, the FAO, the OECD, and the IMF," Sustainability, MDPI, vol. 15(13), pages 1-21, June.
    16. Christophe Gouel, 2014. "Food Price Volatility and Domestic Stabilization Policies in Developing Countries," NBER Chapters, in: The Economics of Food Price Volatility, pages 261-306, National Bureau of Economic Research, Inc.
    17. Rotem Zelingher & David Makowski & Thierry Brunelle, 2020. "Forecasting impacts of Agricultural Production on Global Maize Price [Prévision des impacts de la production agricole sur les prix mondiaux du maïs]," Working Papers hal-02945775, HAL.
    18. Grossman, Gene M, 1984. "International Trade, Foreign Investment, and the Formation of the Entrepreneurial Class," American Economic Review, American Economic Association, vol. 74(4), pages 605-614, September.
    19. Alam, Shamma Adeeb & Liu, Shi Xi & Pörtner, Claus C., 2024. "Navigating food price shocks in a pandemic: Food insecurity and coping mechanisms in Burkina Faso," World Development, Elsevier, vol. 182(C).
    20. Kingwell, Ross S., 1995. "Effects of Tactical Responses and Risk Aversion on Farm Wheat Supply," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(01), pages 1-14, April.

    More about this item

    Keywords

    fragility; food prices; food production; West Africa.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • P22 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Prices
    • P42 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:merase:v:10:y:2025:i:1:p:60-79. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ciocoiu Nadia Carmen (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.