IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/334664.html
   My bibliography  Save this article

Factors Influencing the Prices of Rice, Maize and Wheat Prices in Nigeria

Author

Listed:
  • Ogunmola, Omotoso Oluseye
  • Verter, Nahanga
  • Obayelu, Abiodun Elijah

Abstract

This study examines the impact of agricultural Gross Domestic Product (GDP) and imports on Nigeria’s food commodity prices using annual data from 1981 to 2018. Data obtained were analysed using the unit root test, cointegration test and Autoregressive Distributed Lag (ARDL) model to evaluate the long-run and short-run effects of the hypothesized variables on the food commodity prices. The results reveal that maize import value and exchange rate significantly affect the price of maize in the short-run. In contrast, the lagged price of maize, maize output and the past value of maize imports are the factors that influenced the current price of maize within the review period. Also, the lagged price of rice, rice output and the lagged value of rice imported in the immediate year exerted significant influences on the price of rice in Nigeria. Furthermore, the study indicates that the lagged price of wheat, the import value of wheat and the lagged wheat import value were statistically significant in influencing wheat price in Nigeria. Hence, policies for flexibility in the harmonization of exchange rate movements strengthen domestic agricultural performance.

Suggested Citation

  • Ogunmola, Omotoso Oluseye & Verter, Nahanga & Obayelu, Abiodun Elijah, 2023. "Factors Influencing the Prices of Rice, Maize and Wheat Prices in Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 15(1), January.
    • Handle: RePEc:ags:aolpei:334664
    DOI: 10.22004/ag.econ.334664
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/334664/files/570_agris-on-line-1-2023-ogunmola-verter-obayelu.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.334664?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. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    2. Christopher L. Gilbert, 2010. "How to Understand High Food Prices," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 398-425, June.
    3. Mekbib G. Haile & Jan Brockhaus & Matthias Kalkuhl, 2016. "Short-term acreage forecasting and supply elasticities for staple food commodities in major producer countries," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-23, December.
    4. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    5. Emeka Nkoro & Aham Kelvin Uko, 2016. "Autoregressive Distributed Lag (ARDL) cointegration technique: application and interpretation," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 5(4), pages 1-3.
    6. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    7. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    8. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    9. Bernhard Brümmer & Olaf Korn & Kristina Schlüßler & Tinoush Jamali Jaghdani, 2016. "Volatility in Oilseeds and Vegetable Oils Markets: Drivers and Spillovers," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 685-705, September.
    10. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    11. Robert, Marion & Thomas, Alban & Bergez, Jacques Eric, 2016. "Processes of adpatation in farm decision-making models. A review," TSE Working Papers 16-731, Toulouse School of Economics (TSE).
    12. Mekbib G. Haile & Jan Brockhaus & Matthias Kalku, 2016. "Erratum to: Short-term acreage forecasting and supply elasticities for staple food commodities in major producer countries," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-2, December.
    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. Goh, Soo Khoon & McNown, Robert, 2015. "Examining the exchange rate regime–monetary policy autonomy nexus: Evidence from Malaysia," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 292-303.
    2. Orazaliyev Kanat & Zhijun Yan & Muhammad Mansoor Asghar & Syed Anees Haider Zaidi & Abdul Sami, 2024. "Gender Inequality and Poverty: The Role of Financial Development in Mitigating Poverty in Pakistan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11848-11876, September.
    3. Mai, Nhat Chi, 2019. "Stock Market And Economic Growth In Vietnam," OSF Preprints de8zq, Center for Open Science.
    4. Shahbaz, Muhammad & Mallick, Hrushikesh & Mahalik, Mantu Kumar & Sadorsky, Perry, 2016. "The role of globalization on the recent evolution of energy demand in India: Implications for sustainable development," Energy Economics, Elsevier, vol. 55(C), pages 52-68.
    5. Abbas Ali Chandio & Yuansheng Jiang & Jam Ghulam Murtaza Sahito & Fayyaz Ahmad, 2019. "Empirical Insights into the Long-Run Linkage between Households Energy Consumption and Economic Growth: Macro-Level Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 11(22), pages 1-17, November.
    6. Muhammad Shahid & Amjad Ali, 2015. "The Impact of Decentralized Economic Affairs Expenditures on Economic Growth: A Time Series Analysis of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 4(3), pages 136-148, September.
    7. , Aisdl, 2019. "Stock Market And Economic Growth In Vietnam," OSF Preprints ucbhp, Center for Open Science.
    8. Bashier Al-Abdulrazag & Musa Foudeh, 2022. "Does inflation reduce remittance outflows in Saudi Arabia?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2141424-214, December.
    9. Muhammad Shahbaz & Mete Feridun, 2012. "Electricity consumption and economic growth empirical evidence from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(5), pages 1583-1599, August.
    10. Muhammad Shahbaz & Amatul Razzaq Chaudhary & Syed Jawad Hussain Shahzad, 2020. "Is energy consumption sensitive to foreign capital inflows and currency devaluation in Pakistan?," Applied Economics, Taylor & Francis Journals, vol. 50(52), pages 5641-5658, June.
    11. Sulaiman, Saidu & Masih, Mansur, 2017. "Is liberalizing finance the game in town for Nigeria ?," MPRA Paper 95569, University Library of Munich, Germany.
    12. Mohammad Mafizur Rahman & Muhammad Shahbaz, 2013. "Do Imports and Foreign Capital Inflows Lead Economic Growth? Cointegration and Causality Analysis in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 59-81, March.
    13. Ahmed Raza ul MUSTAFA* & Mohammad NISHAT**, 2017. "ROLE OF SOCIAL PROTECTION IN POVERTY REDUCTION IN PAKISTAN: A Quantitative Approach," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 27(1), pages 67-88.
    14. Shahzad, Syed Jawad Hussain & Kumar, Ronald Ravinesh & Zakaria, Muhammad & Hurr, Maryam, 2017. "Carbon emission, energy consumption, trade openness and financial development in Pakistan: A revisit," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 185-192.
    15. Ferda Halicioglu, 2010. "An Econometric Analysis of the Aggregate Outbound Tourism Demand of Turkey," Tourism Economics, , vol. 16(1), pages 83-97, March.
    16. Amjad Ali & Muhammad Irfan Chani, 2013. "Disaggregated Import Demand Function: A Case Study of Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(1), pages 1-14, January.
    17. Al-Mulali, Usama & Ozturk, Ilhan, 2014. "Are energy conservation policies effective without harming economic growth in the Gulf Cooperation Council countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 639-650.
    18. Kojo Menyah & Yemane Wolde-Rufael, 2012. "Wagner'S Law Revisited: A Note From South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 80(2), pages 200-208, June.
    19. Aamir Jamal & G. M. Bhat, 2023. "Disentangling the Nexus Between Exchange Rate Volatility, Exports, and FDI: Empirical Evidence from the Indian Economy," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(3), pages 449-472, September.
    20. Constantinos Alexiou & Persefoni Tsaliki & Lefteris Tsoulfidis, 2008. "The Greek Hyperinflation Revisited," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 11(1), pages 19-34, Summer.

    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:334664. 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.