Abstract
This study investigates the price transmission mechanisms and degree of market integration
between rural and urban cassava markets in Benue State, Nigeria, using monthly price data
from January 2008 to December 2024. Cassava is a vital staple crop in Nigeria, but its market
is plagued by price volatility and inefficiencies that undermine food security and farmer
incomes. The study employed time-series econometric tools including the Augmented Dickey
Fuller (ADF) unit root test, Johansen co-integration test, Vector Error Correction Model
(VECM), and the Index of Market Connection (IMC) to analyze cassava price dynamics.
Descriptive analysis revealed that urban markets had higher mean cassava prices and greater
price volatility than rural markets, with coefficients of variation of 75.23% and 33.27%,
respectively. The ADF test confirmed stationarity of all price series at level, while Johansen
co-integration results established the existence of long-run equilibrium relationships across
market segments. VECM estimates indicated weak short-run adjustments, with only Otukpo
(urban) and Taraku (rural) markets showing significant responsiveness to deviations from
long-run equilibrium. The IMC value of 0.7761 suggests strong short-run integration between
rural and urban markets, implying that price changes in rural areas were rapidly transmitted
to urban markets. The findings underscore persistent price instability and weak speed of market
adjustments, reflecting structural inefficiencies in cassava marketing. Policy recommendations
include enhancing market information systems, improving rural-urban infrastructure, building
capacity among market actors, and strengthening regulatory frameworks to foster market
transparency and reduce price asymmetries. These interventions are essential to improving
market efficiency, stabilizing cassava prices, and ensuring food security in Benue State and
similar agro-ecological zones.
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