International Journal of Agricultural Policy and Research
Vol.5 (5), pp 94-103, May 2017
Available online at https://www.journalissues.org/IJAPR/
Article 17/ID/JPR011/10/ pages
Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.
Original Research Article
Market integration of retail prices of soyabeans in Benue and Enugu States: A Co-integration Approach
Dorothy Patience ANI1*, Sonny Angus Nnaemeka CHIDEBELU2 and Anselm A. ENETE2
1Department of Agricultural Economics, University of Agriculture, P.M.B.2373 Makurdi, Benue State Nigeria.
2Department of Agricultural Economics, University of Nigeria, Nsukka.
*Corresponding Author E-mail: doranonye(at)yahoo.com ; ugodu.dorothy(at)uam.edu.ng
Tel: +234(0)8030674830, +234(0)8059100211
The study examined the integration of rural and urban retail prices of soyabeans in Benue and Enugu States, Nigeria. Secondary data were collected from BNARDA and ENADEP. Data were analysed using Johansen Co-integration model and chi-square. The result showed that while a one percent increase in Benue urban retail prices would increase Enugu urban retail prices by 37 percents in the long-run, a one percent increase in Benue rural prices will also increase Enugu rural prices by 29 percent in the long-run although with no short-run influences. However, the speed of adjustment were slow (24% and 20% per month respectively). The result of granger causality indicated that retail prices of soyabeans in the Enugu State do not granger cause the retail prices of soyabeans in Benue State and vice versa. However, immediate past two values of Enugu State rural prices were significant. The study concludes that prices of soyabeans in Enugu and Benue markets converge in the long-run, although there was no short-run influences. The study recommends rehabilitation and construction of feeder roads, checkmating the activities of officers at road blocks and setting up of MIS to disseminate timely market information to traders.
Key words: Integration, soyabeans, adjustment speed, retail prices, granger causality