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Asymmetric Effect of Oil Shocks on Food Prices in Nigeria: A Non Linear Autoregressive Distributed Lags Analysis

Author

Listed:
  • Abdulaziz Shehu

    (Department of Economics, Federal University Birnin Kebbi, Nigeria)

  • Shafii Sayuti Abdullah

    (Department of Economics, Federal University Birnin Kebbi, Nigeria)

  • Nasiru Alhaji Yau

    (Department of Banking and Finance, Federal Polytechnic, Kauran Namoda, Nigeria.)

Abstract

This paper examines the asymmetric effect of oil shocks on food prices in Nigeria, using quarterly time series data for the period of January 2010 to December, 2017. Non Linear Autoregressive distributive lag framework was used to analyse both the asymmetric short run and long run effect of oil shocks on food prices. The results indicate that positive oil price shocks have a positive and significant effect on food price while negative changes have no significant effect on food prices. Thus, the paper suggests the need for the government to strengthen its effort in the development of agricultural sector as well as diversifying its sources of income. There is also need for an institution that is mandated to save and invest the excess liquidity that arises from positive oil shocks in the development of agricultural sector and other sectors of the economy.

Suggested Citation

  • Abdulaziz Shehu & Shafii Sayuti Abdullah & Nasiru Alhaji Yau, 2019. "Asymmetric Effect of Oil Shocks on Food Prices in Nigeria: A Non Linear Autoregressive Distributed Lags Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 128-134.
    • Handle: RePEc:eco:journ2:2019-03-14
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    References listed on IDEAS

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    6. Olasunkanmi, Oseni Isiaq & Oladele, Kinbode Sakiru, 2018. "Oil price shock and agricultural commodity prices in Nigeria: A Non-Linear Autoregressive Distributed Lag (NARDL) Approach," African Journal of Economic Review, African Journal of Economic Review, vol. 6(2), July.
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    Cited by:

    1. Areghan A. Isibor & Adetiloye A. Kehinde & Olokoyo O. Felicia & Adesina F. Tolulope & Akinjare A. Victoria & Udume E. Mercy, 2022. "Achieving Sustained Performance in the Nigerian Oil and Gas Sector despite Exchange Rate Fluctuations: A VAR Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 341-351, May.
    2. Sugra Ingilab Humbatova & Mubariz Mammadli Malik & Valiyev Jabrayil Khalil & Natig Gadim-Oglu Hajiev, 2022. "Impact of Oil Exports on Imports of Food and Agricultural Products," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 135-150, May.

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    More about this item

    Keywords

    Asymmetric; Oil Price Shocks; Food Prices; Non Linear Auto regressive Distributive Lag; Nigeria;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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