REGIONAL MARKET INTEGRATION: A PANACEA TO INCREASING PRODUCTIVITY AND INCOME IN NIGERIA
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Keywords

food commodities
market integration
productivity
income
policy

How to Cite

Onubogu, Onyinyechukwu H., & Dipeolu, Adewale O. (2021). REGIONAL MARKET INTEGRATION: A PANACEA TO INCREASING PRODUCTIVITY AND INCOME IN NIGERIA. Journal of Agricultural Economics, Environment and Social Sciences, 7(1), 138-151. Retrieved from http://jaeess.com.ng/index.php/jaeess/article/view/89

Abstract

One of the greatest arguments about food commodities markets in Nigeria is that some of the
markets are inefficient because trade flows are mostly regional based. This study examined the
extent and degree of integration amongst Yam tuber and Cowpeas markets in six states from the
six geopolitical zones of Nigeria from 2000 - 2018 using Johansen Co-integration, Granger
Causality, Vector error correction model and Variance Decomposition methodologies. We confirm
that the markets are integrated, and have various degrees of price leadership. The speed of
adjustment to equilibrium ranged from two months [Niger (β = -0.62, p<0.05)] to two years [Oyo
(β = -0.05, p<0.05)] in yam market; four months [Niger (β = -0.32, p<0.05)] and nine months [Oyo
(β = -0.12, p<0.01)] in the brown-cowpea market; and from nine months [Adamawa and Niger (β
= - 0.12, p<0.05)] to one year [Oyo (β = -0.09, p<0.01)] in the white-cowpea market. The price
shocks on the markets were found to be mainly due to specific market functioning. The implication
of the finding is that the markets, if supplemented with more open policy initiatives, can play a
more effective role in increasing productivity and income of both producers and marketers.

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