Year 2019, Volume 3, Issue 2, Pages 181 - 200 2019-05-31

Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam
Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam

Toyin Benedict Ajibade [1] , Opeyemi Eyitayo Ayinde [2] , Tahirou Abdoulaye [3]

21 101

Price information cum transmission dynamics are driving factors in market integration mechanism.The role of price in transaction decisions is cogent with sustainability of agricultural activities hinged on system effectiveness.Nation targeting food security must have good grasp on functional food commodity pricing system.We designed the study to answer questions on market integration, explore existing relationship and market price responsiveness.Price collected over 52weeks from 24 markets were analysed.Markets were highly integrated however with highest prices in deficit zones. With each market generating information from others by contemporaneous periods, markets clearly had superior price information flow. Commodity association membership, linkage of traders-farm gates, active price seeking behaviours and improved Infrastructure are recommended to enhance market integration, serve price stabilization purpose and promote food affordability.

Price information cum transmission dynamics are driving factors in market integration mechanism.The role of price in transaction decisions is cogent with sustainability of agricultural activities hinged on system effectiveness.Nation targeting food security must have good grasp on functional food commodity pricing system.We designed the study to answer questions on market integration, explore existing relationship and market price responsiveness.Price collected over 52weeks from 24 markets were analysed.Markets were highly integrated however with highest prices in deficit zones. With each market generating information from others by contemporaneous periods, markets clearly had superior price information flow. Commodity association membership, linkage of traders-farm gates, active price seeking behaviours and improved Infrastructure are recommended to enhance market integration, serve price stabilization purpose and promote food affordability.

  • Adereti, F.O., Fapojuwo, O.E., and Onasanya, A.S. (2006). Information utilization on cocoa production techniques by farmers in Oluyole Local Government area of Oyo State, Nigeria. European Journal of Social Science 3 (1): 1-7.
  • Ajibade, T.B., Ayinde, O.E., Abdoulaye, T. and Ayinde, K. (2018). Determinants of Price of Yam in Nigeria: A Times-Series Analysis. Nigerian Journal of Agricultural Economics 8 (1): 109-119
  • Ajibade, T.B., Ayinde, O.E., Abdoulaye, T. and Ayinde, K. (2019) Discovery of Maize Price and Food Crop Market Dynamics in Nigeria. Review of Agricultural and Applied Economics, 22(1): 51-64
  • Ali, W.O., Bett, H.K., Kiprop, S.K. and Korir, H. (2014)Economic Analysis of Spatial Integration of Pulse Market in Ethiopia; A case of Selected Pulse Market in Ethiopia. European Journal of Business and Management, 6 (33): 100-108. www.iiste.org
  • Asogwa, B. C., Ezihe, J. A. C. and Ogebe, F.O. (2012). Agricultural Marketing Information Usage among Soybean Farmers in Nigeria. International Journal of Innovation and Applied Studies, 1 (2) Pp. 160-170
  • Brunnermeier, M.K. (2005). Information leakage and market efficiency. Review of Financial Studies, 18(2): 417-457.
  • Dercon, S., (1995). On market integration and liberalization: Method and application to Ethiopia. Journal of Development studies 32(1):112-143.
  • Fan, C.S. & Wei, X. (2005). The Law of One Price: Evidence from the Transitional Economy of China Review of Economics and Statistics 88 (4):682-697 DOI:10.1162/rest.88.4.682. Source:RePEc
  • Góes, C., & Matheson, T. (2015). Domestic Market Integration and the Law of One Price in Brazil. IMF Working Paper, Western Hemisphere Department. International Monetary Fund (Working Paper No. 15/213). Retrieved 11 October 2016.
  • Johansen, S. & Juselius, K., (1990). Maximum Likelihood Estimation and Inference on Cointegration with Applications to the Demand for Money. Oxford Bulletin of Economics and Statistics,Vol. 52, No. 2, pp. 169–210.
  • Lamont, O.A. & Thaler, R.H. (2003). Anomalies: The Law of One Price in Financial Markets. Journal of Economic Perspectives 17 (Fall 2003), pp. 191–202.
  • Mankiw, N. G. (2011). Principles of Economics (6th ed.). Mason, OH: South-Western Cengage Learning. Page 686.
  • National Population Commission (2017). Publication of National Population Commission, Abuja, Nigeria
  • Mgbada, J.U. (2006). Effectiveness of information sources on improved farming practices to women farmers in Enugu State, Nigeria. Global Approaches to Extension Practice, 2 (1): 67-78, 2006.
  • Orkwor, G.C., Asiedu, R. & Ekanayake, I.J. eds (1998). Food Yams: Advances in Research. IITA, Ibadan and NRCRI, Umudike, Nigeria. 249pp
  • Persson, K.G. (2008). Definitions and Explanation of the Law of One Price. eh.net. Economic History Services. Retrieved 6 July 2017.
  • Ravallion, M. (1986). Testing Market Integration. American Journal of Agricultural Economics (73):102–109
  • Rossi, E. (2010). Impulse Response Functions. Econometrics 10, 1-42 Università di Pavia
  • Stienen, J., Bruinsma, W., & Neuman, F. (2007). How ICT can make a difference in agricultural livelihoods. In Commonwealth ministers reference book (pp.2–4). Retrieved from http://www.iicd.org/files/ICT%20and%20agricultural%20livelihoods.pdf
  • Stigler, G.J. & Sherwin, R.A. (1985). The Extent of the Market. Journal of Law and Economics (27):555–585.
  • Zivot, E., and Wang, J. (2006). Vector autoregressive models for multivariate time series. Modeling Financial Time Series with S-Plus®, 385-429.
Primary Language en
Subjects Economics
Journal Section Makaleler
Authors

Orcid: 0000-0001-5161-7500
Author: Toyin Benedict Ajibade (Primary Author)
Institution: Univeristy of Ilorin, Ilorin
Country: Nigeria


Orcid: 0000-0003-3742-888X
Author: Opeyemi Eyitayo Ayinde
Institution: University of Ilorin, Ilorin
Country: Nigeria


Orcid: 0000-0002-8072-1363
Author: Tahirou Abdoulaye
Institution: International Institute for Tropical Agriculture, Ibadan, Oyo State
Country: Nigeria


Dates

Publication Date: May 31, 2019

Bibtex @research article { alanyaakademik538599, journal = {Alanya Akademik Bakış}, issn = {2547-9733}, eissn = {2651-4192}, address = {Alanya Alaaddin Keykubat University}, year = {2019}, volume = {3}, pages = {181 - 200}, doi = {10.29023/alanyaakademik.538599}, title = {Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam}, key = {cite}, author = {Ajibade, Toyin Benedict and Ayinde, Opeyemi Eyitayo and Abdoulaye, Tahirou} }
APA Ajibade, T , Ayinde, O , Abdoulaye, T . (2019). Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam. Alanya Akademik Bakış, 3 (2), 181-200. DOI: 10.29023/alanyaakademik.538599
MLA Ajibade, T , Ayinde, O , Abdoulaye, T . "Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam". Alanya Akademik Bakış 3 (2019): 181-200 <http://dergipark.org.tr/alanyaakademik/issue/45559/538599>
Chicago Ajibade, T , Ayinde, O , Abdoulaye, T . "Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam". Alanya Akademik Bakış 3 (2019): 181-200
RIS TY - JOUR T1 - Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam AU - Toyin Benedict Ajibade , Opeyemi Eyitayo Ayinde , Tahirou Abdoulaye Y1 - 2019 PY - 2019 N1 - doi: 10.29023/alanyaakademik.538599 DO - 10.29023/alanyaakademik.538599 T2 - Alanya Akademik Bakış JF - Journal JO - JOR SP - 181 EP - 200 VL - 3 IS - 2 SN - 2547-9733-2651-4192 M3 - doi: 10.29023/alanyaakademik.538599 UR - https://doi.org/10.29023/alanyaakademik.538599 Y2 - 2019 ER -
EndNote %0 Alanya Academic Review Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam %A Toyin Benedict Ajibade , Opeyemi Eyitayo Ayinde , Tahirou Abdoulaye %T Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam %D 2019 %J Alanya Akademik Bakış %P 2547-9733-2651-4192 %V 3 %N 2 %R doi: 10.29023/alanyaakademik.538599 %U 10.29023/alanyaakademik.538599
ISNAD Ajibade, Toyin Benedict , Ayinde, Opeyemi Eyitayo , Abdoulaye, Tahirou . "Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam". Alanya Akademik Bakış 3 / 2 (May 2019): 181-200. https://doi.org/10.29023/alanyaakademik.538599
AMA Ajibade T , Ayinde O , Abdoulaye T . Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam. Alanya Akademik Bakış. 2019; 3(2): 181-200.
Vancouver Ajibade T , Ayinde O , Abdoulaye T . Spatial Market Integration and Price Information Flow in Nigeria Markets: The case of Yam. Alanya Akademik Bakış. 2019; 3(2): 200-181.