SUPPLY RESPONSE IN THE CONTEXT OF ECONOMIC REFORM: THE CASE OF MAIZE IN NIGERIA
By
1N. M. Nkang*, 1D. S. Udom and 1H. M. Ndifon
Department of Agricultural Economics and Extension
University of Calabar,
P. M. B. 1115, Calabar – Nigeria
Word count: 4,163
Abstract Word count: 321
Number of characters plus spaces: 26,855
Category of article: Original Research
1Lecturers in the Department of Agricultural Economics and Extension,
University of Calabar, P. M. B. 1115, Calabar – Nigeria
*Corresponding author (e-mail: nkangm@yahoo.com; Tel.: +234 (0) 803 693 8962)
SUPPLY RESPONSE IN THE CONTEXT OF ECONOMIC REFORM: THE CASE OF MAIZE IN NIGERIA
ABSTRACT
This study examined the supply responsiveness of maize farmers in Nigeria over a period of twenty-nine years against the background of economic reform. Annual data, sourced from various issues of the Central Bank of Nigeria’s Annual Reports and Statistical Bulletins were used in the analysis which was carried out using cointegration and error correction techniques. Results show that the response of maize supply to own-price is very high, with an estimated elasticity of 2.7588 in the short-run and 1.9925 in the long-run. Similarly, the sensitivity of maize supply to the price of rice is equally high, with a cross-price elasticity of -2.6771 in the short-run and -1.8033 in the long-run, indicating that an increase in the price of local rice may be harmful to maize supply. The speed of adjustment of maize and rice prices from short-run disequilibria to changes in maize supply in an effort to attain long-run equilibrium is 207.82% within one year, which is very high. A plausible explanation is that adjustment costs in maize production may not be as high and that the capacity of farmers in terms of land and other inputs may not be as fixed as may have been assumed, implying that farming in Nigeria is not specialised. On the strength of these findings, a policy package that would boost the demand for... [continues]
By
1N. M. Nkang*, 1D. S. Udom and 1H. M. Ndifon
Department of Agricultural Economics and Extension
University of Calabar,
P. M. B. 1115, Calabar – Nigeria
Word count: 4,163
Abstract Word count: 321
Number of characters plus spaces: 26,855
Category of article: Original Research
1Lecturers in the Department of Agricultural Economics and Extension,
University of Calabar, P. M. B. 1115, Calabar – Nigeria
*Corresponding author (e-mail: nkangm@yahoo.com; Tel.: +234 (0) 803 693 8962)
SUPPLY RESPONSE IN THE CONTEXT OF ECONOMIC REFORM: THE CASE OF MAIZE IN NIGERIA
ABSTRACT
This study examined the supply responsiveness of maize farmers in Nigeria over a period of twenty-nine years against the background of economic reform. Annual data, sourced from various issues of the Central Bank of Nigeria’s Annual Reports and Statistical Bulletins were used in the analysis which was carried out using cointegration and error correction techniques. Results show that the response of maize supply to own-price is very high, with an estimated elasticity of 2.7588 in the short-run and 1.9925 in the long-run. Similarly, the sensitivity of maize supply to the price of rice is equally high, with a cross-price elasticity of -2.6771 in the short-run and -1.8033 in the long-run, indicating that an increase in the price of local rice may be harmful to maize supply. The speed of adjustment of maize and rice prices from short-run disequilibria to changes in maize supply in an effort to attain long-run equilibrium is 207.82% within one year, which is very high. A plausible explanation is that adjustment costs in maize production may not be as high and that the capacity of farmers in terms of land and other inputs may not be as fixed as may have been assumed, implying that farming in Nigeria is not specialised. On the strength of these findings, a policy package that would boost the demand for... [continues]
Cite This Essay
- APA
-
(2011, 04). Supply Response in the Context of Economic Reform: the Case of Maize in Nigeria. StudyMode.com. Retrieved 04, 2011, from http://www.studymode.com/essays/Supply-Response-In-The-Context-Of-657131.html
- MLA
-
"Supply Response in the Context of Economic Reform: the Case of Maize in Nigeria" StudyMode.com. 04 2011. 04 2011 <http://www.studymode.com/essays/Supply-Response-In-The-Context-Of-657131.html>.
- CHICAGO
-
"Supply Response in the Context of Economic Reform: the Case of Maize in Nigeria." StudyMode.com. 04, 2011. Accessed 04, 2011. http://www.studymode.com/essays/Supply-Response-In-The-Context-Of-657131.html.
