IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/231888.html
   My bibliography  Save this article

Analysis of the Behaviour of Prices of Major Staple Foods in West Africa: A Case Study of Nigeria

Author

Listed:
  • Ayinde, Opeyemi Eyitayo
  • Ilori, T. E.
  • Ayinde, K.
  • Babatunde, R. O.

Abstract

The study analyzed the price behavior of major staple foods in West Africa taking Nigeria as a case study (1966 – 2011). It described the trend of the major staple food prices and examined the linear relationship and interdependence of the major staple food prices in Nigeria. Secondary data were used for this study. The sources were; Food and Agriculture Organization (FAO), and National Bureau of Statistics (NBS). These data were transformed from their nominal value to real value and analyzed using descriptive statistics, unit root test, Pearson correlation coefficient, granger-causality test and structural equation model. The study revealed that the prices of most of the major staple foods were at the maximum value between 1991 and 1993 while their prices were at the minimum value between 1978 and 1983. The study observed that the price of cowpea is most volatile seconded by maize. The results of the unit root test showed that all the variables studied were stationary. The prices of the major staple foods were linearly correlated; some were positively correlated while some were negatively correlated. Granger-causality test on the major staple foods prices showed that the prices of most staple foods were unidirectional while only few were bi-directional. The study further revealed that the prices of staple foods were interdependent. The study recommends political stability in the country as the major staple food prices reached maximum level during the period of 1993 presidential election crisis.

Suggested Citation

  • Ayinde, Opeyemi Eyitayo & Ilori, T. E. & Ayinde, K. & Babatunde, R. O., 2015. "Analysis of the Behaviour of Prices of Major Staple Foods in West Africa: A Case Study of Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(4), pages 1-15, December.
    • Handle: RePEc:ags:aolpei:231888
    DOI: 10.22004/ag.econ.231888
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/231888/files/agris_on-line_2015_4_ayinde_ilori_ayinde_babatunde.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.231888?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Babatunde, Raphael O. & Qaim, Matin, 2010. "Impact of off-farm income on food security and nutrition in Nigeria," Food Policy, Elsevier, vol. 35(4), pages 303-311, August.
    2. World Bank, 2001. "World Development Report 2000/2001," World Bank Publications - Books, The World Bank Group, number 11856.
    3. Pierce, David A. & Haugh, Larry D., 1977. "Causality in temporal systems : Characterization and a survey," Journal of Econometrics, Elsevier, vol. 5(3), pages 265-293, May.
    4. Larry D. Haugh & David A. Pierce, 1977. "Causality in temporal systems: characterizations and a survey," Special Studies Papers 87, Board of Governors of the Federal Reserve System (U.S.).
    5. Hyun Joung Jin & Taeho Kim, 2012. "Structural Changes in the Time Series of Food Prices and Volatility Measurement," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(4), pages 929-944.
    6. Rosa, Franco & Vasciaveo, Michela, 2012. "Agri-Commodity Price Dynamics: The Relationship Between Oil and Agricultural Market," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126738, International Association of Agricultural Economists.
    7. Shehu Usman Rano Aliyu, 2010. "Exchange rate volatility and export trade in Nigeria: an empirical investigation," Applied Financial Economics, Taylor & Francis Journals, vol. 20(13), pages 1071-1084.
    8. Marcel Fafchamps, 1992. "Cash Crop Production, Food Price Volatility, and Rural Market Integration in the Third World," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 90-99.
    9. Martin Ravallion, 1986. "Testing Market Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 102-109.
    10. Acosta, Alejandro, 2012. "Measuring spatial transmission of white maize prices between South Africa and Mozambique: An asymmetric error correction model approach," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 7(1), pages 1-13, October.
    11. Ayinde, Kayode & Bello, Aliyu A. & Ayinde, Opeyemi Eyitayo, 2013. "Modeling Nigerian Government Revenues and Total Expenditure: An Error Correction Model Approach," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160483, African Association of Agricultural Economists (AAAE).
    12. Juselius, Katarina, 2006. "The Cointegrated VAR Model: Methodology and Applications," OUP Catalogue, Oxford University Press, number 9780199285679.
    13. Babatunde, Raphael O. & Qaim, Matin, 2010. "Impact of Off-farm Income on Food Security and Nutrition in Nigeria," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 97332, African Association of Agricultural Economists (AAAE).
    14. Marc F. Bellemare, 2015. "Rising Food Prices, Food Price Volatility, and Social Unrest," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 1-21.
    15. Food and Agriculture Organization, 2013. "The State of Food and Agriculture, 2013," Working Papers id:5511, eSocialSciences.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Awe, O. O. & Akinlana, D. M. & Yaya, O. S. & Aromolaran, O., 2018. "Time Series Analysis of the Behaviour of Import and Export of Agricultural and Non-Agricultural Goods in West Africa: A Case Study of Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(2).
    2. Awe, Olushina Olawale & Dias, Ronaldo, 2022. "Comparative Analysis of ARIMA and Artificial Neural Network Techniques for Forecasting Non-Stationary Agricultural Output Time Series," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(4), December.

    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. Ayinde, Opeyemi & Ilori, T.E. & Babatunde, R.O., 2015. "Impact Of Government Agricultural Policies On The Major Staple Food Prices In Nigeria (1966 - 2011)," 2015 Conference, August 9-14, 2015, Milan, Italy 211188, International Association of Agricultural Economists.
    2. Jianmei ZHAO, 2014. "Rural income diversification patterns and their determinants in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(5), pages 219-231.
    3. Nzabakenga, Alfred & Feng, Luo Xiao & Yaqin, He, 2013. "Agricultural Income Determinants among Smallholder Farmers: Case of Northern Part of Burundi," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 3(11), pages 1-8, November.
    4. Adu-Gyamfi, Richard & Kuada, John & Asongu, Simplice, 2018. "An Integrative Framework for Entrepreneurship Research in Africa," MPRA Paper 89133, University Library of Munich, Germany.
    5. Kassie, Menale & Fisher, Monica & Muricho, Geoffrey & Diiro, Gracious, 2020. "Women’s empowerment boosts the gains in dietary diversity from agricultural technology adoption in rural Kenya," Food Policy, Elsevier, vol. 95(C).
    6. Zeeshan & Geetilaxmi Mohapatra & Arun Kumar Giri, 2022. "How Farm Household Spends Their Non-farm Incomes in Rural India? Evidence from Longitudinal Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1967-1996, August.
    7. Wagener, Andreas & Zenker, Juliane, 2018. "Decoupled but not neutral: The effects of stochastic transfers on investment and incomes in rural Thailand," TVSEP Working Papers wp-008, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    8. Andaleeb Rahman & Sumit Mishra, 2020. "Does Non-farm Income Affect Food Security? Evidence from India," Journal of Development Studies, Taylor & Francis Journals, vol. 56(6), pages 1190-1209, June.
    9. Dufour, Jean-Marie & Pelletier, Denis & Renault, Eric, 2006. "Short run and long run causality in time series: inference," Journal of Econometrics, Elsevier, vol. 132(2), pages 337-362, June.
    10. Nidhal Mgadmi & Houssem Rachdi & Hichem Saidi & Khaled Guesmi, 2019. "On the Instability of Tunisian Money Demand: Some Empirical Issues with Structural Breaks," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 153-165, March.
    11. Gil, J.M. & Diaz-Montenegro, J. & Varela, E., 2018. "A Bias-Adjusted Three-Step approach for analysing the livelihood strategies and the asset mix of cacao producers in Ecuador," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277215, International Association of Agricultural Economists.
    12. Sukhwinder Singh & Andrew D. Jones & Ruth S. DeFries & Meha Jain, 2020. "The association between crop and income diversity and farmer intra-household dietary diversity in India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(2), pages 369-390, April.
    13. Shunji Oniki & Melaku Berhe & Koichi Takenaka, 2020. "Efficiency Impact of the Communal Land Distribution Program in Northern Ethiopia," Sustainability, MDPI, vol. 12(11), pages 1-14, May.
    14. Seok Young Hong & Oliver Linton & Hui Jun Zhang, 2014. "Multivariate variance ratio statistics," CeMMAP working papers 29/14, Institute for Fiscal Studies.
    15. repec:cte:werepe:we1211 is not listed on IDEAS
    16. Munir Ahmed & Ghulam Mustafa & Muhammad Iqbal, 2016. "Impact of Farm Households’ Adaptations to Climate Change on Food Security: Evidence from Different Agro-ecologies of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 561-588.
    17. Linh Khac Bui & Huyen Hoang, 2021. "Non-farm employment, food poverty and vulnerability in rural Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7326-7357, May.
    18. Marc Hallin & Abdessamad Saidi, 2005. "Testing Non‐Correlation and Non‐Causality between Multivariate ARMA Time Series," Journal of Time Series Analysis, Wiley Blackwell, vol. 26(1), pages 83-105, January.
    19. Utku Utkulu & Durmus Özdemir, 2005. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, September.
    20. Abdurrahman Korkmaz & Mustafa Erhan Bilman, 2017. "The S-curve Behaviour of the Trade Balance," Foreign Trade Review, , vol. 52(1), pages 1-14, February.
    21. Singh, Sonika & Ratchford, Brian T. & Prasad, Ashutosh, 2014. "Offline and Online Search in Used Durables Markets," Journal of Retailing, Elsevier, vol. 90(3), pages 301-320.

    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:ags:aolpei:231888. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fevszcz.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.