IDEAS home Printed from https://ideas.repec.org/a/bjc/journl/v8y2021i3p46-49.html
   My bibliography  Save this article

Macroeconomic factors: Cereal Grains Output and Prices in Nigeria

Author

Listed:
  • Ahmad Nazifi Muhammad

    (Department of Agric. Econs., Kano University of Science and Technology, Wudil, Kano State, Nigeria)

  • Ahmad Usman Shu’aib

    (Department of Agriculture and Economics, Bayero University, Kano, Kano State, Nigeria)

  • Zulkiflu Abdu

    (Department of Agric. Econs., Kano University of Science and Technology, Wudil, Kano State, Nigeria)

Abstract

Despite the facts that less attention is given to the effects of macroeconomic variables on cereal grains output in Nigeria, this study examine the effect of macroeconomic factors, output and prices of selected cereal grains in Nigeria using OLS technique and quarterly data from 2006 to 2016. The study analysed secondary data obtained from a time-series for cereal grains prices sourced from FMARD. While, data for macroeconomics variables and cereal grains outputs were obtained from the publication of Central Bank of Nigeria (CBN) Statistical Bulletins. The estimated outcome form the output model for rice reveals that quarterly interest rate and money supply increases rice output, while oil price reduce rice output. However, exchange rate and inflation have no effect on the rice output. The estimated outcome for maize output model shows that inflation rate maize output in Nigeria. The result also indicates that exchange rate increase Sorghum output level. Nevertheless, interest rate, inflation, and money supply does not determine the level of Sorghum output. In addition, the estimate form the price of rice model illustrates that exchange rate, inflation and money supply increase price of rice, while interest rate decreases the price of rice in the nation. In the maize price model, exchange rate, inflation and oil price accelerates the price level of maize and money supply decelerates the price. The outcome shows that interest rate has no effect on the price of maize. Furthermore, exchange rate, inflation and oil price rises price of Sorghum in the nation. Nonetheless, interest rate and money supply does not determine the price level of Sorghum. Hence, the study suggest that since, exchange rate, inflation, interest rate and money supply affect the level of price and output of cereals grains policymakers in Nigeria should design appropriate policies to mediate and control exchange rate and inflation for sustainability of the output and price of cereal grains as well as the stability of the economy. This could be done through price control measures and fixed interest rate as well as exchange rate policy to financial institutions in the nation.

Suggested Citation

  • Ahmad Nazifi Muhammad & Ahmad Usman Shu’aib & Zulkiflu Abdu, 2021. "Macroeconomic factors: Cereal Grains Output and Prices in Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 8(3), pages 46-49, March.
    • Handle: RePEc:bjc:journl:v:8:y:2021:i:3:p:46-49
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrsi/digital-library/volume-8-issue-3/46-49.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/macroeconomic-factors-cereal-grains-output-and-prices-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rude, James & An, Henry, 2015. "Explaining grain and oilseed price volatility: The role of export restrictions," Food Policy, Elsevier, vol. 57(C), pages 83-92.
    2. Ayhan KAPUSUZOGLU & Xi LIANG & Nildag Basak CEYLAN, 2018. "Macroeconomic impacts of global food price shocks on the economy of Turkey," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(11), pages 517-525.
    3. Aina, I.V. & Ayinde, Opeyemi & Falola, Abraham, 2015. "Effect of Price Variation on Rice Production in Nigeria (1970-2011)," 2015 Conference, August 9-14, 2015, Milan, Italy 210938, International Association of Agricultural Economists.
    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. Rosero, Gabriel & Jaghdani, Tinoush Jamali & Brümmer, Bernhard, 2021. "Unravelling complex market relationships. A study on the price volatility of Brazilian pork using a DCC-MGARCH approach," 95th Annual Conference, March 29-30, 2021, Warwick, UK (Hybrid) 311090, Agricultural Economics Society - AES.
    2. Natalia Vasylieva, 2018. "Ukrainian Agricultural Contribution to the World Food Security: Economic Problems and Prospects," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 14(4), pages 215-224.
    3. Fabio Gaetano Santeramo & Emilia Lamonaca & Francesco Contò & Gianluca Nardone & Antonio Stasi, 2018. "Drivers of grain price volatility: a cursory critical review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(8), pages 347-356.
    4. Estrades, Carmen, 2015. "The Role of Export Restrictions in Agriculture Trade," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229229, International Agricultural Trade Research Consortium.
    5. Charlotte Fontan Sers & Mazhar Mughal, 2023. "Food riots redux: lessons from the 2007-08 food crisis," Working Papers hal-03973284, HAL.
    6. Fabio Gaetano Santeramo, 2017. "Market Fundamentals and International Grain Price Volatility," 2017 Sixth AIEAA Conference, June 15-16, Piacenza, Italy 261255, Italian Association of Agricultural and Applied Economics (AIEAA).
    7. Berger, Jurij & Dalheimer, Bernhard & Brümmer, Bernhard, 2021. "Effects of variable EU import levies on corn price volatility," Food Policy, Elsevier, vol. 102(C).
    8. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "On the drivers of global grain price volatility: an empirical investigation," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(1), pages 31-42.
    9. Vasylieva, Natalia, 2020. "Application of Markowitz Portfolio Theory to Producing the World Major Field Crops," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(3), December.
    10. An, Henry & Qiu, Feng & Zheng, Yanan, 2016. "How do export controls affect price transmission and volatility spillovers in the Ukrainian wheat and flour markets?," Food Policy, Elsevier, vol. 62(C), pages 142-150.
    11. Blake, Daniella & Dawson, Carolina & Loeillet, Denis & Staver, Charles, 2018. "Can Global Climate Change affect Prices in the World Banana Market?," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 67(1), March.
    12. Dalheimer, Bernhard & Brümmer, Bernhard & Jaghdani, Tinoush Jamali, 2017. "Impacts of Export Restrictions on Food Price Volatility: Evidence from VAR-X and EGARCH-X Models," 57th Annual Conference, Weihenstephan, Germany, September 13-15, 2017 262151, German Association of Agricultural Economists (GEWISOLA).

    More about this item

    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:bjc:journl:v:8:y:2021:i:3:p:46-49. 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: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrsi/ .

    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.