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Climatic Variations and Spatial Price Differentials of Perishable Foods in Nigeria

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  • Lateef Olawale Akanni

    (Centre for the Study of the Economies of Africa, Nigeria)

Abstract

In this study, we attempt to examine the factors that explain the spatial price differentials of selected perishable food crops across Nigerian markets. Based on monthly market prices of onions and tomatoes across different States, we examine the implications of climatic variations, cost of transportation and differences in economic sizes on the price spread of these items. The empirical findings from the dynamic heterogeneous panel regressions show that these factors have significant long-run impacts on the difference in food prices across markets. The results highlight these factors are vital in regional price spreads for agricultural commodities and hence the need for specific policies to reduce the vulnerability of prices to these factors, particularly transfer costs. Policies geared towards improving agriculture value-chain could offer pathways towards mitigating food loss and waste associated with changing climate and transfer costs, and thereby reduction in prices.

Suggested Citation

  • Lateef Olawale Akanni, 2020. "Climatic Variations and Spatial Price Differentials of Perishable Foods in Nigeria," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 5(1), pages 1-15, June.
    • Handle: RePEc:sgh:erfinj:v:5:y:2020:i:1:p:1-15
    DOI: 10.2478/erfin-2020-0001
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    More about this item

    Keywords

    Climatic Variations; Normalised Difference Vegetation Index; Perishable Foods; Spatial Price; Panel ARDL;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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