Analysis of effect of price variation on rice production in Nigeria (1970 – 2011)
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Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Agriculture, Nasarawa State Univerisity
Abstract
Food price instability is a frequent forerunner of macroeconomic shocks and political turmoil
that can discourage long-run investment and curtail growth. The study used descriptive
statistics tools to highlight the trend of rice Production over the years in the study area. Time
series data of a period of 42 years was obtained from various sources spanning from 1970-
2011 from editions of National Bureau of Statistics review of external trade, National Bureau
of Statistics summary and annual abstract of statistics, Central Bank of Nigeria’s economic
and financial review and an online database maintained by Food and Agricultural
Organization (FAO). The study revealed that price of rice and quantity of production has a
positive effect on each other. The Cobweb theory can be used by the government to regulate
the response of price to rice production. Since increase in price brings about an increase in
production, in line with the theory of Supply which states that the higher the price, the higher
the quantity supplied: government should implement policies that will subsidize the price of
rice to consumers and increase the level of food security in the country.
Description
Keywords
Price, variation, rice production, Nigeria
Citation
22. Ayinde, O. E. Aina, I. V., Babatunde, R. O. & Falola, A. (2015): Analysis of effect of price variation on rice production in Nigeria (1970 – 2011). Production, Agriculture and Technology Journal, 11(1):75-82. Published by the Faculty of Agriculture, Nasarawa State Univerisity, Lafia. Available online at http://patnsukjournal.net/Vol11No1/P8.pdf.