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Spatial Integration Of Maize Market In Nigeria – A Vector Error Correction Model

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  • Ikudayisi, Adesola Adebola
  • Salman, Kabir Kayode

Abstract

Agricultural commodities are produced over an extensive spatial area and are costly to transport relative to their total value as this inhibits efficient functioning of the markets. The study examined spatial market integration among geographically separated maize markets in Nigeria using monthly retail price data of maize grain from January 2001 – December 2010 in the selected producing and consuming states. The data were analyzed using Johansen co-integration and Vector error correction model (VECM). In the long run, the states were co-integrated and the rate at which VECM restored deviation from equilibrium was moderate. The study showed that spatial price linkages exist within maize market as products moved efficiently across market which is related to efficiency of price information flow. The study recommends that farmers should be provided with more price information in order to take advantage of spatial price differences.

Suggested Citation

  • Ikudayisi, Adesola Adebola & Salman, Kabir Kayode, 2014. "Spatial Integration Of Maize Market In Nigeria – A Vector Error Correction Model," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(3), pages 1-10, July.
    • Handle: RePEc:ags:ijfaec:186268
    DOI: 10.22004/ag.econ.186268
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    References listed on IDEAS

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    Cited by:

    1. Mulubrhan Amare & Kibrom A. Abay & Patrick Hatzenbuehler, 2024. "Spatial market integration during a pandemic: Evidence from food markets in Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 55(1), pages 86-103, January.

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