Spatial price transmission

Spatial price analysis is important in explaining market performance and the degree of integration. This study therefore provides an econometric analysis of plantain markets integration. Using co integration analyses and vector error correction modelling, wholesale prices from three markets were used to test the degree of spatial market integration. The Johansen's co integration test indicated at least three co integrating vectors implying that the plantain markets during the study period were linked together. The result of the VECM reveals that if a shock is applied to Techiman market, 47% of it will be eliminated in the next period, this result suggest a moderate speed of price adjustment between the Techiman market and the other markets analysed given the perfect adjustment threshold of 100%.

This work aims to study the integration of papaya market, price transmission and price causality patterns with the help of Johansen co-integration test, vector error correction model and Granger causality test using 13 years average monthly prices of papaya. Johansen co-integration tests indicate that four papaya markets significantly co-integrated with each other. Vector error correction (VEC) model test indicates that speed of papaya price adjustment for Arbaminch market was statistically significant at 1% level and the fastest compared to other payaya price adjustment. Its equilibrium price was stable. Whereas, speed of price adjustment for Adama market was insignificant and the slowest as compared to other market prices; its equilibrium was unstable because price change was away from equilibrium price. This implies that there was asymmetric information. The Granger causality test indicates that Arbamnch papaya price had bidirectional relationships with Merkato and Shashemenie markets. Concerned bodies should work on asymmetric information to address slow price adjustment between various papaya markets.

This paper presents a comprehensive review of food market integration research spanning 1990-2023, provides a thorough bibliography, and emphasizes its growth between developed and emerging economies. It evaluates 140 papers with the aim of highlighting the importance of price transmission, market stability and market integration in the food sector. The study provides an overview of econometric methodologies, review global assessment methods, and identifies the major elements that influence market integration, such as commerce, social capital, government interference, export policies, institutions, information, competition, and market power. The finding reveals a rise in research activities between 2000 and 2015, with a growing focus on developing countries. This work is to offer a synopsis to researchers, academicians, and policy makers on the extent of the food market both internationally and domestically. This paper will be helpful for the researchers interested in understanding and investigating the dynamics of food market integration with a useful resource by classifying previous works and identifying current developments. The review also offers commentary on current research and prospects and their implication in line with SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities) as it promotes fair access to resources and economic opportunities.

This study analyzed the relationship among producer prices, area harvested and yield of cassava in Nigeria. The study used annual time series data spanning from 1991 to 2014. Results from Augmented Dickey Fuller test showed that the series were integrated of order one, 1(1 ). Johansen cointegration test showed there was no long-run relationship among the variables. Results from the VAR estimates showed that producer prices have significant influence on area harvested and yield of cassava even though there was no long-run relationship among the variables during the period of study. Also the variance decomposition analyses showed that over time the results reveal that only about 26.21 and 27.91 percent of changes in producer prices is explained by changes in area harvested and yield respectively. This implies that producer prices are mainly influenced by changes in its own shock and not changes in area harvested and yield. Results showed that there exist bidirectional causalities betw...

This paper examines the socioeconomic relevance of cassava to rural peasant farmers in two districts in Ghana, with the aim of highlighting its significance in ensuring improvement in rural socioeconomic livelihoods. The study employed mainly the quantitative research technique in collecting data from 120 respondents from six farming communities in the Awutu-Effutu-Senya and Atebubu-Amantin districts of the Central and Brong Ahafo regions of Ghana respectfully. Data collected with structured questionnaire were analyzed in accordance with the study objective. The paper establishes that since its introduction to Ghana in the sixteenth century, cassava has contributed and continues to contribute significantly to the socioeconomic livelihoods of peasant farm producers in the two districts. It is a major crop cultivated in combination with other crops and hence a major contributor to the income of peasant farmers. It also serves as a major source of occupation of rural dwellers and hence provides them with a sense of relevance and dignity in their communities. To this extent, the paper suggests among others that the state pays more attention to research and development with the view to introducing a higher yielding cassava variety that would be suitable for Ghanaian soil type, and to facilitate the development of an integrated cassava industry in Ghana to link peasant farm producers to the growing global market for cassava-starch and its derivatives.

Vegetables hold very important and significant place in our diet, among vegetables chilli (Capsicum annuum L.)  is one of the most important vegetable crop of Pakistan. The vegetable’s market integration is the major problem in Pakistan and symbol of efficiency is integrated markets. The present study was conducted for domestic integration of four major chilli markets of Pakistan by using their monthly wholesale chilli prices of eighteen years (June 2000 to July 2019) by adopting Johan-sane integration approach. The Augmented Dickey Fuller (ADF) test revealed that prices are integrated at first difference and results of pair wise integration showed chilli markets of Pakistan (Hyderabad, Lahore and Quetta) are integrated in the long-run and in short run with strong relationship, except Peshawar market because of long distance, price variation & seasonal effects. The results of Vector Error Correction Model (VECM) showed significant adjustment of prices in almost three pairs of market...

Vegetables hold very important and significant place in our diet, among vegetables chilli (Capsicum annuum L.)  is one of the most important vegetable crop of Pakistan. The vegetable’s market integration is the major problem in Pakistan and symbol of efficiency is integrated markets. The present study was conducted for domestic integration of four major chilli markets of Pakistan by using their monthly wholesale chilli prices of eighteen years (June 2000 to July 2019) by adopting Johan-sane integration approach. The Augmented Dickey Fuller (ADF) test revealed that prices are integrated at first difference and results of pair wise integration showed chilli markets of Pakistan (Hyderabad, Lahore and Quetta) are integrated in the long-run and in short run with strong relationship, except Peshawar market because of long distance, price variation & seasonal effects. The results of Vector Error Correction Model (VECM) showed significant adjustment of prices in almost three pairs of market...

Vegetables hold very important and significant place in our diet, among vegetables chilli (Capsicum annuum L.)  is one of the most important vegetable crop of Pakistan. The vegetable’s market integration is the major problem in Pakistan and symbol of efficiency is integrated markets. The present study was conducted for domestic integration of four major chilli markets of Pakistan by using their monthly wholesale chilli prices of eighteen years (June 2000 to July 2019) by adopting Johan-sane integration approach. The Augmented Dickey Fuller (ADF) test revealed that prices are integrated at first difference and results of pair wise integration showed chilli markets of Pakistan (Hyderabad, Lahore and Quetta) are integrated in the long-run and in short run with strong relationship, except Peshawar market because of long distance, price variation & seasonal effects. The results of Vector Error Correction Model (VECM) showed significant adjustment of prices in almost three pairs of market...

This study has tested the long-run market integration across the four major wholesale lentil markets from the two leading Lentil producing states, Madhya Pradesh, and Uttar Pradesh. Two major wholesale markets, Attara and Banda are selected from Uttar Pradesh, and another two wholesale markets, Jabalpur and Raisen are selected from Madhya Pradesh based on the availability of data on prices and arrival. The empirical results have confirmed the presence of long-run price connections across the selected markets. Johansen's cointegration test has shown that even though the selected Lentil markets in India are geographically isolated and spatially segmented, they are well-connected in terms of prices of Lentil and have long-run price linkage between them. Granger Causality Test shows that there are unidirectional causalities between Attara and Jabalpur markets which implies that a price change in the former market in each pair granger causes the price formation in the latter market, whereas the price change in the latter market is not feedbacked by the price change in the former market in each pair. However, out of six cases, bi-directional causality is observed in two cases i.e., Attara-Banda, Banda-Attara and Jabalpur-Raisen, Raisen-Jabalpur, thus, indicating there is a perfect price transmission mechanism between these market pairs.

The Root and Tuber crop value chain is an important avenue for ending persistent poverty and food insecurity among farm households in most developing countries. Accordingly, several African countries, including Ghana has developed and implemented Root and Tuber crops improvement programme to promote the expansive production, processing and consumption of Root and Tuber crops. Given the huge investment requirement for such poverty and food insecurity reduction programmes, it becomes necessary to first establish the sustainability dimensions of the programme interventions. Programme sustainability is important to ensure that gains made during programme implementation continue to persist long after funding and assistance has been withdrawn by donors and implementers. Accordingly, we analysed the sustainability of RTIMP programme interventions among cassava farmers. 150 RTIMP beneficiary cassava farmers were sampled and data was collected and analysed using a multistage sampling approach. The results show that the RTIMP programme sustainability hinges on three sustainability dimensions (i.e., economic, social, and environmental). Farmers asserted that the interventions and services received contributed moderately to the sustainability of the RTIMP programme along the three identified sustainability dimensions. Accordingly, every intervention activity must impact beneficiaries across these dimensions. Another important outcome from our study was the significant locational variation on the sustainability impact of the intervention along the three sustainability dimensions, hence the needs to frame subsequent policy interventions in such a way that it takes into consideration the effect of location difference on the potential sustainability of the programme.

This paper investigates the respective roles of spatial integration and transport costs in explaining price changes in Ghana. We introduce a model of price formation and market integration that incorporates the price transmission process between local and central markets and also captures the implications for volatility of local prices. We explore the implications of the model for the time-path of price adjustments, as determined directly and indirectly through the marketing sector. We show that the price-adjustment process in a local market is determined by the degree of interdependence between that market and the central market in which a price-shock originates, and estimate the intertemporal and interspatial dynamics of the price adjustment process. Using data from wholesale maize markets in Ghana we find that reductions in local prices and local price variance following the introduction of economic reforms in 1983 can be traced to both local and central market forces, but that differences in the degree of market integration have important implications for long-run changes in transport costs and the evolution of prices in outlying markets.

This study analyses market integration and price transmission in selected agricultural markets in Ghana. The Johansen co-integration procedure, Granger Causality test and autoregressive distributed lag model were applied to analyse the data. The results revealed that the price series were integrated of order one, however, we did not find evidence of co- integration of the price series. Moreover, the market studied did not Granger Cause one another. Conclusively, the results suggest the existence of poor price transmission and poorly integrated cassava markets. We therefore suggest that policy makers take a critical look at the factors that influence spatial price transmission

Prices serve as veritable guide to farmers’ planning decision and other market actors in Nigeria. This study examined the trend in cassava root and yam tuber prices in rural and urban markets in Oyo State, Nigeria. Secondary data were used in this study. The data were sourced from Oyo State Agricultural Development Programme (OYSADEP). The average monthly retail price per kilogramme of cassava root and yam tuber covering the period, January 2011 to December 2015 (5 years) for 8 rural and urban markets each in Oyo State were used. Augmented Dicker Fuller (ADF) test, granger causality test and index of market concentration were used to analyze the data. The maximum and minimum prices of cassava root per kilogramme in the rural area were found to be N37.14 and N7.33 respectively. In the same vein, urban market prices obtained for cassava root per kilogramme were N39.34 and N7.09 as maximum and minimum prices. Furthermore, the maximum and minimum prices of yam tuber per kilogramme attai...

This study evaluated the causes of housing problem in Nigeria using Awka, Anambra State as a case. The work adopted the survey method through Oral interview, observation and Questionnaires. The simple random sampling approach was used and the sample size of the study was purposively put at 300. The target population includes: housing investors, government parastatals and individuals. The identified causative factors of housing problem were tested using the following statistical tools One-way ANOVA for test of significant difference in the response of the respondents and Post-HOC in ranking of these factors. They were arranged in descending order as follows: Poverty, Population increase due to Urbanization, High cost of land, Non-implementation of the housing policies, Failure on the side of the government, High cost of building materials and Corruption; which implies the least of the problems is corruption. The work concluded that housing deficit is one of the major problems suffere...

This study evaluated factors influencing export performance of ginger (Zinbiger officinale) in Nigeria. Specifically, the research study was designed to achieve the following objectives: examine the short run equilibrium relationships between test variables; evaluate the long run equilibrium relationships between test variables; and determine the linearinterdependence between factors influencing export of ginger. The test variables under considerations were export quantity of ginger (Zinbiger officinale), exchange rate, interest rate, ratio of producer price to domestic price, and ratio of producer price to export price. Data were of secondary sources covering 1995-2020.The statistical and econometrics tools used to achieve the stated objectives were: Augmented Dickey Fuller (ADF), Phillips-Perron (PP), Johansen Co-Integrating Test and Vector Error Correction Model (VECM). The results of Augmented Dickey-Fuller (ADF) unit root test shows that all test variables were non-stationary at level. All test variables were statistically significant at first difference at 5% level of probability. Phillip-Perron (PP) unit root test shows that all test variables were stationary at first difference and were statistically significant. Johansens co-integration test revealed the presence of co-integration among variables and long-term relationships among variables. Vector Error Correction Model (VECM) shows that exchange rate (EXR), interest rate (INR), had negative coefficients and was statistically significant in influencing export performance of ginger (Zinbiger officinale) in Nigeria in the short run. Ratio of producer price to domestic price (PP), producer price to export price (PX), quantity of ginger exported (Y) had positive coefficients and were statistically significant in influencing export performance of ginger (Zinbiger officinale) in Nigeria in the short run. In the long run, exchange rate (EXR), interest rate (INR), ratio of producer price to domestic price (PP), ratio of producer price to export price (PX) were statistically significant in influencing export performance of ginger (Zinbiger officinale) in Nigeria. The coefficients of error correction model (ECM) was negative, this measures the speed of adjustment towards the long run equilibrium. The coefficients of multiple determinations (R 2) was 0.6710. This confirmed presence of goodness of fit. The F-statistics of 43.06 was significant at 1% level of significance. This confirmed the explanatory power of the entire model. The RESET value of VECM was 1.510 (P < 0.01) shows no evidence of misspecification of functional form. The research study recommends policy formulations and implementations that will stabilize exchange rate. Interest rate should be single digit. Export market should be developed along the ginger (Zinbiger officinale) value chains and other crops to expand export market base and earn foreign exchange.

The study examined a time-series analysis of Nigeria rice supply and demand with a view to determining any long-run equilibrium between them using the Error Correction Model approach (ECM). The data used for the study represents the annual series of 1960-2007 (47 years) for rice supply and demand in Nigeria, derived from the World Rice Statistics compiled by the International Rice Research Institute (IRRI, 2009). The order of integration and the level of co-integration were determined using the Augmented Dickey Fuller (ADF), Johansen co-integration and Granger causality test. The result of the descriptive statistics showed that rice supply and demand had means of 1.8 and 1.6 million metric tonnes respectively with a demand-supply lag of 0.18 million metric tons. The Trace test indicated one co-integrating equation at the 0.05 level of significance while the Granger causality ran one-way from supply to demand. The result of the ECM shows that the coefficient of the short-run and long-run relationships between rice demand and supply were 1.102963 and-0.043497 respectively. There is disequilibrium between Nigeria rice supply and demand in the short-run but re-equilibrates at 0.043. Thus, the more the demand for rice, the higher the production is expected in order to avoid any shortage, in the short-run, which though will always even out in the long-run. Nigeria rice supply-demand exhibit disequilibrium in the short-run but has a long-run equilibrium.

Due to the Federal Government of Nigeria's privatization and commercialization of the downstream sector of the oil industry, the prices of kerosene and gas, which are competitors to wood charcoal, have risen astronomically in recent years. This has also continued to shift demand away from them and back to wood charcoal. Wood charcoal business is, therefore, fast becoming a lucrative business in Nigeria. However, for agro-climatic reasons, production of wood charcoal is mostly concentrated around the forest regions of the country thereby underscoring its marketing as a very important component of the business environment with potential for mass employment creation and poverty alleviation. But no systematic assessment of this potential has been carried out to date. This paper examines the marketing of wood charcoal in Abia State Nigeria, especially as it concerns the margins, structure, price causality, and price transmission. The margins were however on the average, lower than the producer's share of the consumer spending. The result of the analysis also suggests a competitive market structure for wood charcoal in the study area. Prices were determined at the producer level of the marketing chain, but producers were asymmetric in their price transmissions to the wholesale level. These observations suggest that policy intervention in the form of improving the socioeconomic environment under which marketing agents operate and facilitation of market information flow (which could reduce the asymmetric behavior of producers) could improve marketing of wood charcoal in the study area, with important practical implications for poverty alleviation and food security.

Although Ghana has increased its rice production, it still relies on imported rice. The Ghanaian government has shown its concerns about this import dependency that may negatively influence the competitiveness of domestic rice. However, does the price of imported rice really affect that of domestic rice? This paper examines the price relationship between local rice and foreign one at markets in the Greater Accra region of Ghana. The study selected Makola and Tema markets, the two major markets in this most populated region of the country. For analysis, we used annual retail prices of local and foreign rice in the two markets from 2006 to 2015. The Granger causality model test was applied to examine the relationship between local and foreign rice prices. The Johansen co-integration test was used to test the long-term price relationships of local and foreign rice prices. The Granger causality test results revealed that the price of foreign rice does not have any significant influence ...

As Nigeria relies on importation for 56% of its national annual rice consumption, rice availability and prices are major welfare determinants in resource-poor households. Consequently, rice market integration, which will occasion price stability and pricing efficiency, are vitally important. This study examined pricing contacts in the imported rice market (IRM) in Southwest, Nigeria, using time-series data which were first subjected to stationarity tests. The major analytical tools used were growth rate model, coefficient of variation (CV) and Johansen co-integration model. Average growth in price was highest in Osun Market (33.4%), followed by Oyo Market (31.3%) and Ondo Market (29.8%). The highest average growth rate was recorded in year 2008 while negative growth rate was obtained across all IRM locations in the year 2010. This could be linked to lifting of the ban on rice imports that engendered increased importation immediately afterwards. Retail prices were more volatile in Oyo Market (35.8%) and least volatile in Ogun Market (31.1%). The generally low price variability implied that consumers can effectively plan rice expenditure. The ADF and PP tests revealed that all prices were not stationary at their levels but they attained stationarity after first-differencing. Pair-wise market integration tests revealed 14 out of 15 market pairs had prices which were spatially integrated on the long-run. Johansen's multiple co-integration model results indicated 4 co-integration vectors out of 6 meaning that prices were stationary in 4 directions and non-stationary in 2. The Granger causality model showed that IRM locations deficient in imported rice were driving the prices in market locations with surplus of the commodity. It was recommended that the problem posed by highly inefficient and fragmented distribution and transportation systems be addressed for the rice traders and consumers to take full advantage of the high spatial market integration in the region.

HIS study assesses the Nigerian fresh fish market for presence and extent of long-run integration using descriptive, inferential statistics and special regression models. Empirical results revealed that some markets had prices that were either too high or too low compared with the mean. There was a high variability in prices ranging from 62.1% for Uyo market to 95.5% for Enugu market. The price series in all the markets, except those of Akure and Owerri, accepted the null hypothesis of non-stationarity at their levels at 5% significance level. The integration test showed that only 41% of markets examined had prices which are tied together in the longrun. The Granger-causality model revealed that Bauchi, Kano and Makurdi markets occupy leadership position in price formation and transmission. The implications of the empirical results for marketing and development were discussed. The study concludes that the level of competitiveness is low in fresh fish marketing in Nigeria and recomme...

As Nigeria relies on importation for 56% of its national annual rice consumption, rice availability and prices are major welfare determinants in resource-poor households. Consequently, rice market integration, which will occasion price stability and pricing efficiency, are vitally important. This study examined pricing contacts in the imported rice market (IRM) in Southwest, Nigeria, using time-series data which were first subjected to stationarity tests. The major analytical tools used were growth rate model, coefficient of variation (CV) and Johansen co-integration model. Average growth in price was highest in Osun Market (33.4%), followed by Oyo Market (31.3%) and Ondo Market (29.8%). The highest average growth rate was recorded in year 2008 while negative growth rate was obtained across all IRM locations in the year 2010. This could be linked to lifting of the ban on rice imports that engendered increased importation immediately afterwards. Retail prices were more volatile in Oyo Market (35.8%) and least volatile in Ogun Market (31.1%). The generally low price variability implied that consumers can effectively plan rice expenditure. The ADF and PP tests revealed that all prices were not stationary at their levels but they attained stationarity after first-differencing. Pair-wise market integration tests revealed 14 out of 15 market pairs had prices which were spatially integrated on the long-run. Johansen's multiple co-integration model results indicated 4 co-integration vectors out of 6 meaning that prices were stationary in 4 directions and non-stationary in 2. The Granger causality model showed that IRM locations deficient in imported rice were driving the prices in market locations with surplus of the commodity. It was recommended that the problem posed by highly inefficient and fragmented distribution and transportation systems be addressed for the rice traders and consumers to take full advantage of the high spatial market integration in the region.

The importance of cassava to the livelihoods of many millions of poor people has made the commodity a target for interventions. The potential of the crop is large because it offers the cheap source of food calories and the highest yield per unit area. It also has multiple roles as famine reserve, food and cash crop, industrial raw material and livestock feed. The objectives of this paper were to describe the traditional cassava trade networks involving the rural (supply) and urban (demand) markets, assess the degree of market integration for traditional cassava products and suggest policy approaches to increase market efficiency. The data was collected in 60 urban markets that were surveyed. About 500 rural markets were also surveyed with key information on the movement of different cassava commodities from the rural market to each urban destination (demand) market. Market integration between rural supply and one urban demand market for the cassava-based products of gari and chips were analyzed. The results showed that eight cassava-based products are traded in two basic (dry and wet) forms in Nigeria. The Kano-Katsina-Maradi axis is a major cassava cross border trade route in West Africa. Gari and chips (flour) are the most important products traded across borders. Improving local cassava production in the south and central regions of Nigeria will therefore help create wealth and also help to reduce risks arising from cyclical drought in the Sahelian countries. The price system can be expected to respond to exogenous shocks and return to equilibrium but market information is not efficient in traditional cassava products markets. A dual policy approach is therefore recommended to encourage additional cassava production for industrial purposes and at the same time support existing smallholder production systems through the introduction of improved inputs.

As Nigeria relies on importation for 56% of its national annual rice consumption, rice availability and prices are major welfare determinants in resource-poor households. Consequently, rice market integration, which will occasion price stability and pricing efficiency, are vitally important. This study examined pricing contacts in the imported rice market (IRM) in Southwest, Nigeria, using time-series data which were first subjected to stationarity tests. The major analytical tools used were growth rate model, coefficient of variation (CV) and Johansen co-integration model. Average growth in price was highest in Osun Market (33.4%), followed by Oyo Market (31.3%) and Ondo Market (29.8%). The highest average growth rate was recorded in year 2008 while negative growth rate was obtained across all IRM locations in the year 2010. This could be linked to lifting of the ban on rice imports that engendered increased importation immediately afterwards. Retail prices were more volatile in Oyo Market (35.8%) and least volatile in Ogun Market (31.1%). The generally low price variability implied that consumers can effectively plan rice expenditure. The ADF and PP tests revealed that all prices were not stationary at their levels but they attained stationarity after first-differencing. Pair-wise market integration tests revealed 14 out of 15 market pairs had prices which were spatially integrated on the long-run. Johansen's multiple co-integration model results indicated 4 co-integration vectors out of 6 meaning that prices were stationary in 4 directions and non-stationary in 2. The Granger causality model showed that IRM locations deficient in imported rice were driving the prices in market locations with surplus of the commodity. It was recommended that the problem posed by highly inefficient and fragmented distribution and transportation systems be addressed for the rice traders and consumers to take full advantage of the high spatial market integration in the region.

The decision with regards to allocation of area to any crop by farmers among other things depends on the prices of the individual crop. The extent to which farmers respond to economic incentives is thus crucial to policy makers. This study was aimed at estimating the acreage response of soybean to changes in price in Nigeria from 1976 to 2012. Time series data in respect of soybean area harvested (hectares) and producer price of soybean in local currency (Naira/tonne) were obtained. Augmented Dickey Fuller (ADF) test and, the Johansen co integration technique were employed to test for the stationarity of the variables and the long-run relationship between variables respectively. Result indicates the presence of one co integrating long run equilibrium relationship between the variables. The Vector Error Correction Model (VECM) estimates showed that soybean price had a negative influence on the area harvested. Suggesting that a decrease in soybean price will result in reduction in are...

The objective of this study was to analyze the integration of onion market among the spatially separated secondary market to onion producers and the central market. Pearson correlation coefficient, unit root test, Co-integration test and Error correction model were employed to know linear relationship among these markets, non stationary or stationary series, OLS estimation for the long run relationship and short run relationship between these markets respectively. Monthly price series for a period of five years from September 2006 – August 2011 was used for the study. Accordingly, the result portrayed that, there is a strong relationship between the two secondary markets like Harar and Dire Dawa than central market. After conducting the DF/ADF test the residual from OLS estimation obey stationary and known that co-integration between the two regional markets to each other than the central market. From the ECM model, it was concluded that there is a slower adjustment of the system to...

Prices serve as veritable guide to farmers’ planning decision and other market actors in Nigeria. This study examined the trend in cassava root and yam tuber prices in rural and urban markets in Oyo State, Nigeria. Secondary data were used in this study. The data were sourced from Oyo State Agricultural Development Programme (OYSADEP). The average monthly retail price per kilogramme of cassava root and yam tuber covering the period, January 2011 to December 2015 (5 years) for 8 rural and urban markets each in Oyo State were used. Augmented Dicker Fuller (ADF) test, granger causality test and index of market concentration were used to analyze the data. The maximum and minimum prices of cassava root per kilogramme in the rural area were found to be N37.14 and N7.33 respectively. In the same vein, urban market prices obtained for cassava root per kilogramme were N39.34 and N7.09 as maximum and minimum prices. Furthermore, the maximum and minimum prices of yam tuber per kilogramme attai...

Despite the importance of cowpea in Uganda as a leading legume, its production and improvement have not received much attention over the last two decades. Data was obtained on prices of grains of cowpeas on a weekly basis from FIT Uganda between 2008 to 2011 in Soroti, Lira and Kampala. Data collected was analyzed using descriptive statistics, particularly, frequencies and the measures of central tendency. Several approaches were used to investigate the degree of cowpea market integration in Uganda: bivariate correlation coefficients, co-integration and Granger-Causality tests were used to account for the complex interactions of prices in different markets. Results from these tests show that cowpea markets as a whole are not integrated. This is not a surprising result since it can be linked to the general lack of market information. Prices in different markets are not equally responsive to changes in the supply of cowpeas. The results obtained will assist in subsequent cowpea variet...

Despite the importance of cowpea in Uganda as a leading legume, its production and improvement have not received much attention over the last two decades. Data was obtained on prices of grains of cowpeas on a weekly basis from FIT Uganda between 2008 to 2011 in Soroti, Lira and Kampala. Data collected was analyzed using descriptive statistics, particularly, frequencies and the measures of central tendency. Several approaches were used to investigate the degree of cowpea market integration in Uganda: bivariate correlation coefficients, co-integration and Granger-Causality tests were used to account for the complex interactions of prices in different markets. Results from these tests show that cowpea markets as a whole are not integrated. This is not a surprising result since it can be linked to the general lack of market information. Prices in different markets are not equally responsive to changes in the supply of cowpeas. The results obtained will assist in subsequent cowpea variet...

This study examined the integration of rural and urban markets in Niger State using the Error correction Modeling. Secondary data of the retail prices of rice were collected for a period of 60 months (2006-2010) and error correction technique was employed in the determination of the degree of market integration between the markets using a four test procedures viz: Augumented Dickey Fuller test to detect for the presence of unit root in the series; Johansen co-integration test for the long run equilibrium relationship among the variables; Vector error correction model test (VECM) to capture short-run and long-run changes in the price movements; and Granger casualty test to reflect the direction of influence between prices. The results revealed that unit root in the price series was eliminated after the first differencing and that there was a stable long-run equilibrium relationship among the markets. The vector error correction estimates shows that most of the markets were not well integrated in the short-run, and finally, the causality test revealed that no single market dominated the price formation either in the rural or urban markets in the study area. Therefore, to improve the rate of spatial price adjustment in the study area, policy makers should intensify their efforts on improving the functioning of rice markets through increasing marketers' access to accurate and timely marketing information as well as reduction of the prices of mobile phones to make it more affordable to the marketers so as to improve the degree of integration of the markets in the study area.

This study analyses market integration and price transmission in selected agricultural markets in Ghana. The Johansen co-integration procedure, Granger Causality test and autoregressive distributed lag model were applied to analyse the data. The results revealed that the price series were integrated of order one, however, we did not find evidence of co- integration of the price series. Moreover, the market studied did not Granger Cause one another. Conclusively, the results suggest the existence of poor price transmission and poorly integrated cassava markets. We therefore suggest that policy makers take a critical look at the factors that influence spatial price transmission.

Spatial price analysis is important in explaining market performance and the degree of integration. This study therefore provides an econometric analysis of plantain markets integration. Using co integration analyses and vector error correction modelling, wholesale prices from three markets were used to test the degree of spatial market integration. The Johansen’s co integration test indicated at least three co integrating vectors implying that the plantain markets during the study period were linked together. The result of the VECM reveals that if a shock is applied to Techiman market, 47% of it will be eliminated in the next period, this result suggest a moderate speed of price adjustment between the Techiman market and the other markets analysed given the perfect adjustment threshold of 100%.

Prices serve as veritable guide to farmers’ planning decision and other market actors in Nigeria. This study examined the trend in cassava root and yam tuber prices in rural and urban markets in Oyo State, Nigeria. Secondary data were used in this study. The data were sourced from Oyo State Agricultural Development Programme (OYSADEP). The average monthly retail price per kilogramme of cassava root and yam tuber covering the period, January 2011 to December 2015 (5 years) for 8 rural and urban markets each in Oyo State were used. Augmented Dicker Fuller (ADF) test, granger causality test and index of market concentration were used to analyze the data. The maximum and minimum prices of cassava root per kilogramme in the rural area were found to be N37.14 and N7.33 respectively. In the same vein, urban market prices obtained for cassava root per kilogramme were N39.34 and N7.09 as maximum and minimum prices. Furthermore, the maximum and minimum prices of yam tuber per kilogramme attai...

The study assesses the efficiency of the plantain marketing system in Ghana using monthly wholesale prices in GHS/10 kg covering the period 2004 to 2009. The integration among the plantain markets was tested with the Johansen multivariate co-integration analysis and error correction model. The markets chosen for the study are Accra market as a central consumption market; Kumasi market, Sunyani market and Koforidua market as assembling markets; Goaso market, Begoro market and Obogo market as producing markets. These markets were chosen based on the volume of production and trade in the areas. The findings of the market integration analysis indicate that arbitrage in the plantain marketing system is working since there are both long and short run relationship between Accra market (central consumption market) and the three assembling and three producing markets. However, the speed with which prices are transmitted between Accra market (consumption market) and the other markets (plantai...

Agricultural price behaviour in the long run depends on several factors ranging from the socioeconomic , environmental and political environment among others. This study tested for the long run price adjustment mechanism between the producer price of raw cassava in the rural market and retailed price of its derivatives in urban market in the Southern region of Nigeria. The study was built from the Engle-Granger to Enders-Siklos methodologies to verify the symmetric and asymmetric price relationship between the source price (raw cassava) and its derivative prices (garri, fufu, chip, starch and flour) along the food chain. The result confirmed significant short and long run market integration between the source and its derivatives. However, the source price equilibrium in the long run followed asymmetric adjustment with respect to urban prices of fufu and cassava flour; whereas symmetric adjustment was obtained with respect to prices of garri, cassava chip and starch. It is suggested that, the cassava market/industry in the study area has problems that need intervention in order to remove price distortion or externality costs in the long run. Issues such as seasonality, many middlemen, high perishability and poor processing technologies among others were mentioned. Hence, these issues need to be addressed adequately in order to achieve high efficiency in the industry.

The study assesses the efficiency of the plantain marketing system in Ghana using monthly wholesale prices in GHS/10 kg covering the period 2004 to 2009. The integration among the plantain markets was tested with the Johansen multivariate co-integration analysis and error correction model. The markets chosen for the study are Accra market as a central consumption market; Kumasi market, Sunyani market and Koforidua market as assembling markets; Goaso market, Begoro market and Obogo market as producing markets. These markets were chosen based on the volume of production and trade in the areas. The findings of the market integration analysis indicate that arbitrage in the plantain marketing system is working since there are both long and short run relationship between Accra market (central consumption market) and the three assembling and three producing markets. However, the speed with which prices are transmitted between Accra market (consumption market) and the other markets (plantain production and assembling markets) is relatively weak at 27.7%, compared to perfect adjustment of 100% threshold. This implies that there is the need for further integration especially in the short run. Improvement in market information systems and expansion especially into producing areas, as well as accurate, timely, and availability of information on plantain prices may be useful in the efficient distribution of plantain from surplus to deficit markets.

This pcrper ancr1~~se.s the Prcsihntial Special Initiative on Cassava, a Ofmnaian governnrent initiative tlrt~t seeks to irrcrease sirbstantial(v the nation ' s foreign exchange ea~nirrgs through the trans/ormation of smallholder production methods and the processing of cns.str~a~for export. Research ~vork ~j a s carried out in the Gomoa and , the A w~rtu-Eflirtlr-Senya Districts in Ghantl '. Y Ccntrtrl Region. Eighty (80) farmers, as well (1s ntc~tnhers of the.farmers' as.socirrtiorl nntl the strrffand management of the Ayerrszr Starcli Cornpcrry n~er-r inten~ie~)ed. The firnd(1menta1 methorl used was participant observation. T1ri.s wtrs coniplgrnented with inten~iews, questionnaires and focus group discrrssions. The pclper asserts that severcrl bottlenecks are impeding attempts to increme smallliolrler crrssava prorlucfion. The rnornle of farmers is low and the starch filctot?) is cu~.rerrtlj~ working well belo~v its installed capacity. The paper questions the rationale behind successi\~e governments' policy of radically transforming smnllholder .subsistence production and suggests the nerd for a gradual process tlirorrgh the folm(ltion of (rctive out-grower cooperativr.s as well as the provision of estensiorl support, crvtiir arrrl trninir~g to farmers.

This study analyses market integration and price transmission in selected agricultural markets in Ghana. The Johansen co-integration procedure, Granger Causality test and autoregressive distributed lag model were applied to analyse the data. The results revealed that the price series were integrated of order one, however, we did not find evidence of co- integration of the price series. Moreover, the market studied did not Granger Cause one another. Conclusively, the results suggest the existence of poor price transmission and poorly integrated cassava markets. We therefore suggest that policy makers take a critical look at the factors that influence spatial price transmission

Spatial price analysis is important in explaining market performance and the degree of integration. This study therefore provides an econometric analysis of plantain markets integration. Using co integration analyses and vector error correction modelling, wholesale prices from three markets were used to test the degree of spatial market integration. The Johansen's co integration test indicated at least three co integrating vectors implying that the plantain markets during the study period were linked together. The result of the VECM reveals that if a shock is applied to Techiman market, 47% of it will be eliminated in the next period, this result suggest a moderate speed of price adjustment between the Techiman market and the other markets analysed given the perfect adjustment threshold of 100%.

Most studies on local rice in Nigeria were geared toward increasing production, consumption or competitiveness. Achieving these requires a study on extent of pricing contacts in the market for local rice. Secondary data consisting of urban monthly retail price series in the six southwest states of Nigeria were collected and analyzed. Analytical techniques included Augmented Dickey Fuller (ADF), Johansen Co-integration and Granger Causality models. Empirical results indicated that growth in retail prices was highest in 2004 and in Ogun (48.69%) and Ondo (45.36%) implying that local rice was more costly in these states. Retail prices were more volatile in Lagos (37.3%) while the least price volatility was recorded in Ogun (30.4%). The ADF test showed all price series were non-stationary at their levels but were stationary after first-difference. Pair-wise market integration model indicated that prices were co-integrated at either 1% or 5% levels of significance connoting high degree of marketing efficiency. Multiple co-integration model also indicated five co-integrating equations in six, at 5% level thus validating the result of pair-wise market co-integration tests. Granger causality model revealed that the supply-deficient markets in Lagos and Osun were driving prices in other states. These results may have arisen from the storability of rice and closeness of the market locations. Despite this very high level of linkage, there is the need for all stakeholders in the market to continue to effectively perform their roles so that economic benefits derivable from this scenario of strong pricing contacts can be fully realized and sustained.

As Nigeria relies on importation for 56% of its national annual rice consumption, rice availability and prices are major welfare determinants in resource-poor households. Consequently, rice market integration, which will occasion price stability and pricing efficiency, are vitally important. This study examined pricing contacts in the imported rice market (IRM) in Southwest, Nigeria, using time-series data which were first subjected to stationarity tests. The major analytical tools used were growth rate model, coefficient of variation (CV) and Johansen co-integration model. Average growth in price was highest in Osun Market (33.4%), followed by Oyo Market (31.3%) and Ondo Market (29.8%). The highest average growth rate was recorded in year 2008 while negative growth rate was obtained across all IRM locations in the year 2010. This could be linked to lifting of the ban on rice imports that engendered increased importation immediately afterwards. Retail prices were more volatile in Oyo Market (35.8%) and least volatile in Ogun Market (31.1%). The generally low price variability implied that consumers can effectively plan rice expenditure. The ADF and PP tests revealed that all prices were not stationary at their levels but they attained stationarity after first-differencing. Pair-wise market integration tests revealed 14 out of 15 market pairs had prices which were spatially integrated on the long-run. Johansen's multiple co-integration model results indicated 4 co-integration vectors out of 6 meaning that prices were stationary in 4 directions and non-stationary in 2. The Granger causality model showed that IRM locations deficient in imported rice were driving the prices in market locations with surplus of the commodity. It was recommended that the problem posed by highly inefficient and fragmented distribution and transportation systems be addressed for the rice traders and consumers to take full advantage of the high spatial market integration in the region.

The importance of cassava to the livelihoods of many millions of poor people has made the commodity a target for interventions. The potential of the crop is large because it offers the cheap source of food calories and the highest yield per unit area. It also has multiple roles as famine reserve, food and cash crop, industrial raw material and livestock feed. The objectives of this paper were to describe the traditional cassava trade networks involving the rural (supply) and urban (demand) markets, assess the degree of market integration for traditional cassava products and suggest policy approaches to increase market efficiency. The data was collected in 60 urban markets that were surveyed. About 500 rural markets were also surveyed with key information on the movement of different cassava commodities from the rural market to each urban destination (demand) market. Market integration between rural supply and one urban demand market for the cassava-based products of gari and chips were analyzed. The results showed that eight cassava-based products are traded in two basic (dry and wet) forms in Nigeria. The Kano-Katsina-Maradi axis is a major cassava cross border trade route in West Africa. Gari and chips (flour) are the most important products traded across borders. Improving local cassava production in the south and central regions of Nigeria will therefore help create wealth and also help to reduce risks arising from cyclical drought in the Sahelian countries. The price system can be expected to respond to exogenous shocks and return to equilibrium but market information is not efficient in traditional cassava products markets. A dual policy approach is therefore recommended to encourage additional cassava production for industrial purposes and at the same time support existing smallholder production systems through the introduction of improved inputs.

This study focuses on the interface between state policy initiatives, the process of depeasantisation and agrarian change, using the Presidential Special Initiative on Cassava-Starch as a case. Employing both quantitative and qualitative data gathering techniques, primary data were collected from six farming communities in the Awutu-Effutu-Senya and Atebubu-Amantin districts of the Central and Brong Ahafo regions of Ghana. The analysis of primary data revealed that with the right policy initiatives by the state, it is possible to systematically incorporate peasant farmers into mainstream economy and to improve their socio-economic livelihoods. To this extent, the study recommends among others that given the importance of cassava to peasant farmers and its potential in both local and international markets, there should be consistent effort to promote its cultivation through extensive research and development with the view of introducing new varieties with high yields along with right...

The study examined the price transmission and market integration of local and foreign rice in rural and urban markets of Akwa Ibom State in Southern region of Nigeria. Average monthly prices (measured in naira per kilogram) of local and foreign rice in rural and urban markets were used in the analysis. The data came from the quarterly publication of the Akwa Ibom State Agricultural Development Programme (AKADEP). The data covered January 2005 to June 2013. The findings show that, prices of local and foreign rice in rural and urban markets has constant exponential growth rate of 0.59% which suggests perfect co-movement for rural and urban prices of local and foreign rice in the study area. Also, the Pearson correlation coefficient matrix revealed that, the rural price of local and foreign rice has linear symmetrical relationships with their corresponding urban prices. The result connotes the existence of symmetric market information flows between the rural and urban rice markets in the state. The Granger causality test revealed bidirectional relationship between rural and urban price of local and foreign rice in Akwa Ibom State, Nigeria. The results of the co-integration test revealed the presence of co-integration between the rural and urban prices of local and foreign rice as well as support the hypothesis of perfect price transmission between the two markets in the study area. The coefficients of the price variable in the co-integration equations for local and foreign rice markets converge to unity which connotes perfect market integration in the long run. The results of the error correction model (ECM) also confirm the existence of the short run market integration between the rural and urban prices of local and foreign rice in the study area. In addition, the result shows that, the price of local rice in both rural and urban markets adjusted faster than prices of foreign rice once there is an exogenous shock in the marketing process of rice in Akwa Ibom State. The index of market concentration (IMC) supports the high short run market integration between prices in rural and urban markets for local and foreign rice commodities and the quick adjustment of rural price of local rice in relative to rural price of foreign rice. Based on the finding, it is recommended that, the state government should continue to provide marketing infrastructures to improve the symmetric nature of information among participants in rice marketing in the state. Attempt should be made to reduce excessive externality costs in rice marketing in order to fully reap the benefit of rice market integration in the state.

The importance of cassava to the livelihoods of many millions of poor people has made the commodity a target for interventions. The potential of the crop is large because it offers the cheap source of food calories and the highest yield per unit area. It also has multiple roles as famine reserve, food and cash crop, industrial raw material and livestock feed. The objectives of this paper were to describe the traditional cassava trade networks involving the rural (supply) and urban (demand) markets, assess the degree of market integration for traditional cassava products and suggest policy approaches to increase market efficiency. The data was collected in 60 urban markets that were surveyed. About 500 rural markets were also surveyed with key information on the movement of different cassava commodities from the rural market to each urban destination (demand) market. Market integration between rural supply and one urban demand market for the cassava-based products of gari and chips were analyzed. The results showed that eight cassava-based products are traded in two basic (dry and wet) forms in Nigeria. The Kano-Katsina-Maradi axis is a major cassava cross border trade route in West Africa. Gari and chips (flour) are the most important products traded across borders. Improving local cassava production in the south and central regions of Nigeria will therefore help create wealth and also help to reduce risks arising from cyclical drought in the Sahelian countries. The price system can be expected to respond to exogenous shocks and return to equilibrium but market information is not efficient in traditional cassava products markets. A dual policy approach is therefore recommended to encourage additional cassava production for industrial purposes and at the same time support existing smallholder production systems through the introduction of improved inputs.

Spatial price analysis is important in explaining market performance and the degree of integration. This study therefore provides an econometric analysis of plantain markets integration. Using co integration analyses and vector error correction modelling, wholesale prices from three markets were used to test the degree of spatial market integration. The Johansen's co integration test indicated at least three co integrating vectors implying that the plantain markets during the study period were linked together. The result of the VECM reveals that if a shock is applied to Techiman market, 47% of it will be eliminated in the next period, this result suggest a moderate speed of price adjustment between the Techiman market and the other markets analysed given the perfect adjustment threshold of 100%.

he absence of market integration has important implications for market efficiency.
An integrated vegetable market will permit low spatial and intertemporal variation in
prices, implying that commodity market prices will be functionally related. Vegetables
are important sources of nutrients and income. The study assessed market integration
between urban and rural markets of Amaranthus cruentus L, Corchorus olitorius L, and
okra [Abelmoschus esculentus (L.) Moench] in South-western Nigeria. Data on monthly
prices from 2004 to 2009 was collected from the Oyo State, Nigeria, Agricultural
Development Project. Data were analyzed using augmented Dicker-Fuller and Granger
causality tests and the index of market connection (IMC). Prices of A. cruentus and
C. olitorius were stationary at its level, and the price of okra was stationary by the
first difference. Johansen co-integration analysis indicated that rural and urban vegetable
market prices are co-integrated and form part of the same market, indicating a
flow of market price information. The Granger causality test suggested that urban and
rural prices of Corchorus have a causal relationship. Rural okra and C. olitorius exhibited
a bidirectional causal relationship. The IMCs for Amaranthus, Corchorus,andokra
were 0.64, 0.26, and 3.32, respectively, indicating that Amaranthus and Corchorus markets
exhibit high short-run market integration, whereas okra exhibited low short-run
market integration. There is quick transmission of prices between urban and rural
markets for Amaranthus and Corchorus, whereas there is slow transmission of prices
between urban and rural markets for okra because the flow of information regarding
okra prices is not efficient. The policy implication of the study is that market price information
should be made available to farmers through various agricultural programs and
a market infrastructure including transportation and communication facilities should
be developed.

The benefits of cassava production must be reflected in efficiency of the markets as in most Africa countries and Ghana, cassava cultivated by small scale farmers are often sold either in the nearby markets or the farm gate. That is to say, if agricultural growth is to be realized, developing countries like Ghana have to ensure effective and efficient marketing
and distribution systems. Economic integration results in more efficient use of resources increase in trade, productivity and overall production (Ismet et al., 1998). Efficiency of markets depends, among other things, on the number of traders, the level of competition among them and on the amount and costs of information at their disposal (Federico, 2007). It is, however, obvious that increased production without corresponding well-developed and efficient marketing system may amount to wastage of resources (Adetunji and Adesiyan, 2008). Hence, investigating the spatial integration of producing and consuming cassava markets is useful in ascertaining the efficiency of cassava marketing in Central region of Ghana. Cassava marketing system in central region of Ghana will ensure cassava at cheaper price to consumer and also ensures greater share to producer in consumer price. An efficient farm marketing system is an important means for raising the income levels of farmers and for promoting the economic development of a country (Tamimi, 1999).

The study assesses the efficiency of the plantain marketing system in Ghana using monthly wholesale
prices in GHS/10 kg covering the period 2004 to 2009. The integration among the plantain markets was
tested with the Johansen multivariate co-integration analysis and error correction model. The markets
chosen for the study are Accra market as a central consumption market; Kumasi market, Sunyani
market and Koforidua market as assembling markets; Goaso market, Begoro market and Obogo market
as producing markets. These markets were chosen based on the volume of production and trade in the
areas. The findings of the market integration analysis indicate that arbitrage in the plantain marketing
system is working since there are both long and short run relationship between Accra market (central
consumption market) and the three assembling and three producing markets. However, the speed with
which prices are transmitted between Accra market (consumption market) and the other markets
(plantain production and assembling markets) is relatively weak at 27.7%, compared to perfect
adjustment of 100% threshold. This implies that there is the need for further integration especially in the
short run. Improvement in market information systems and expansion especially into producing areas,
as well as accurate, timely, and availability of information on plantain prices may be useful in the
efficient distribution of plantain from surplus to deficit markets.