DETERMINANTS OF PRICE OF YAM IN NIGERIA: A TIMES-SERIES ANALYSIS
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Date
2018
Journal Title
Journal ISSN
Volume Title
Publisher
Nigerian Journal of Agricultural Economics (NJAE).
Abstract
With a contribution of up to 71% to world output of yam, Nigeria remains the largest producing country
with rural farmers having yam as second most commonly harvested tuber crop. Given its nutritional
superiority to most roots and tubers in terms of digestible proteins and minerals and its relevance as a
source of income for the poor majority of rural-farmers, the importance of yam in Nigeria cannot be
overemphasized. There has however been a persistent price increase in yam, as well as other food
commodities, in Nigeria. This study was therefore designed to investigate the determinants of rising
yam price in Nigeria over the period 1970-2015. The study relied on time-series data sourced from
FAOSTAT, Federal Bureau of Statistics and CBN Bulletin. Inferential statistics including unit-root test,
cointegration and error correction model were employed in analysis. Autocorrelation was present in the
model hence necessitating Cochrane-Orcutt approach. Results indicated that variables were nonstationary
but became stationary after first differencing. At 5% significance level, on the long run, price
of yam was determined by annual production (coef.=-0.8095), GDP (coef.=-3.009) and annual money
supply (coef.=0.829). It is consequently recommended that programmes and strategies implemented to
boost food production in Nigeria should be carried on viz-a-viz robust economic planning that keeps
the significant macroeconomic variables at optimal levels in order to maintain the balance required for
stabilization in food commodity prices. Likewise, efforts should be concerted in putting insurgency in
Nigeria under checks considering the ill effect it has on farming and trading activities.
Description
Keywords
Yam price, Autocorrelation, Cochrane-Orcutt, Error Correction Mode