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

Year 2019, Volume: 3 Issue: 2, 181 - 200, 31.05.2019

Toyin Benedict Ajibade Opeyemi Eyitayo Ayinde Tahirou Abdoulaye

https://doi.org/10.29023/alanyaakademik.538599

Abstract

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.

Keywords

Food price, Market information, Market integration, Nigeria, Yam

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

Abstract

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.

Keywords

Food price, market information, market integration, Nigeria, Yam

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