Integration among Spatial Onion Markets in Nigeria- A Cointegration Analysis

The study aimed at examining spatial market integration among geographically separated onion markets in Nigeria Secondary data involving monthly retail price data of onion crop in the selected producing and consuming states were used for the analysis The study was analysed using Ravallion model Johansen cointegration error correction model and granger causality The index of market concentration indicated low short run market integration of onion market IMC 1 which could be as a result of poor road network in spatially separated markets There was long run cointegration exist among the producing and consuming states and the error correction model result indicated that the rates of price transfer were generally moderate This may be related to efficiency of information flow The study recommends that farmers should be provided with more price information and good road network to enable them take advantage of spatial price difference

Does Urbanisation Promote Consumption of Diverse Diets? A Nigerian Study

Increasing urban growth is significantly transforming food landscape However consumption of a diverse diet is constrained by different factors owing to disparities in extent of access to nutritionally and safe food in most urban areas This paper using cross-sectional data from 445 urban households in Nigeria analyses the determinants of dietary diversity using the Berry Index and Quantile regression model Income of household head household size and level of urbanisation were important factors that influenced household s consumption of a diverse diet However the rate of influence varies in magnitude across quantiles Results revealed heterogeneous level of dietary diversity across quantiles which suggests disparities in intake of wider varieties of food in urban settings Suitable policy interventions are identifie

Nigerian Debt Portfolio and Its Implication on Economic Growth

This study examines the relationship between economic growth and debt variables for the period 1981-2012 using Vector Error Correction Model (VECM) approach. Variables were stationary at their first differences at 1% level of significance and there is one co-integrating relationship among the variables at 0.05 level. Granger test reveals that causality flows from GDP to both External debt (EXD) and its servicing (SERV). On the other hand, domestic debt (DDB) granger causes GDP. Bi-causality relationship was also found between EXD and SERV. The error correction value of 55.1% which is significant at 1% means that the speed of adjustment of the short-run to the long-run is slightly above average. Instrumental variable (IV) analysis (GMM) confirms non-linear (inverted-U) relationships between economic growth and the domestic/external debts. Debt-to-GDP ratios of 21.4% (domestic debt) and 26.9% (external debt) reveal that Nigeria can benefit from borrowed funds provided it stays below these limits and the repayment conditions are favorable. Hence, funds channeled towards developmental efforts will have positive ripple effects on the economy. Keywords: Debt stock, debt service, economic growth, sustainability ratio, vector error correctio

Analysis of expenditure path beyond staple foods consumption in Nigeria

Purpose. This study investigates the food expenditure path segmented by staples and non-staples in Nigeria. Methodology / approach. A multi-stage sampling procedure was used to sample a cross sectional data of 438 urban households from two randomly selected urbanising states in South West, Nigeria. The study used descriptive statistics such as percentages and means to determine households’ food budget shares and their per capita food expenditure Results. From the expenditure estimates, a differential effect in budget share of food was found with an increase in staples diet of Low Urban Area (LUA) households (33 %). However, consumption of non-staple foods was more pronounced among households residing in high urban areas (HUA) (35 %). Per capita food expenditure was higher for LUA households (N1377.52), while their food shares for processed cereals were equal with those of HUA. Findings suggest a more diverse diets, thus revealing a quality-quantity nexus within urban locations. Originality / scientific novelty. This is the very study that explains urban differential beyond staple food consumption and nutritional outcome. The household food expenditure pattern brought to fore location-specific variations in urban diet in the study area. Practical value / implications. The switch away from consumption of staples was beyond income responsiveness, but, towards changes in level of urbanization. The differential path in per capita expenditures on staple and non-staples are shown to have implications on nutrition within urban areas

THE AGRIFOOD SYSTEM TRANSFORMATION IN NIGERIA: INSIGHTS FROM A HOUSEHOLD FOOD DEMAND MODEL

Research background: The food system is central to a wide range of outcomes such as food security, nutrition and economic development. In this wise, the food systems must meet the needs of a growing and increasingly urbanized population. However, food system in developing countries is undergoing a rapid transformation towards high value products and food safety. Yet, the consumer demand drive towards the transformation has received much less attention. Hence, improvement in the agricultural and food systems must be viewed in the context of household food consumption patterns. Purpose of the article: This paper examined household food demand and food choice preferences among urban households in southwest, Nigeria. Understanding Nigeria’s Agrofood structure through urban eating pattern will proffer knowledge required for better policy design and implementation. Methods: The paper applies a quadratic almost ideal demand system (QUAIDS) model to a cross-sectional household survey data from two urban areas, and estimate price and expenditure elasticities as indicators of household sensitivity to market shocks. Findings & Value added: Analysis of frequency distribution on urban household’s preferences shows that convenience, availability, safety were important attributes influencing decisions to purchase foods. Demand estimations show positive expenditure elasticities for food groups with values close to unity. The animal-source foods and cereals were more expenditure-elastic in high urban areas (HUA) and low urban areas (LUA), respectively. All own-price elasticities are negative and LUA are more price-sensitive to most food groups compared to HUA. The price and expenditure results suggest that transformation of agro food products will come in place if convenience and food safety attributes are incorporated in food value chain

SPATIAL INTEGRATION OF MAIZE MARKET IN NIGERIA – A VECTOR ERROR CORRECTION MODEL

Agricultural commodities are produced over an extensive spatial area and are costly to transport relative to their total value as this inhibits efficient functioning of the markets. The study examined spatial market integration among geographically separated maize markets in Nigeria using monthly retail price data of maize grain from January 2001 – December 2010 in the selected producing and consuming states. The data were analyzed using Johansen cointegration and Vector error correction model (VECM). In the long run, the states were cointegrated and the rate at which VECM restored deviation from equilibrium was moderate. The study showed that spatial price linkages exist within maize market as products moved efficiently across market which is related to efficiency of price information flow. The study recommends that farmers should be provided with more price information in order to take advantage of spatial price differences

Complement-substitution nexus in the Nigerian diet: policy gaps in nutrition

Purpose. This paper examined urban household food demand patterns in Southwest, Nigeria using complement-substitution relationship. Methodology / approach. Through a multistage sampling technique, the study used cross sectional data of 445 households from two states in Southwest Nigeria which are representative of areas with a rapid rate of urbanisation. Quadratic Almost Ideal Demand System (QUAIDS) modeling framework was used to estimate the demand system for seven food groups considered. Results. The potential nutrition benefits of price and income changes in urban food groups was estimated, which explains the different quantity of food purchased by household as price changes. From the result, the root and tuber group accounted for the largest household food budget share (29.4 %) with the least share found in the legume group (3.3 %). Elasticity estimates revealed that the own-price effect was inelastic for all food groups. The uncompensated cross-price elasticities suggest both substitution and complementary association between groups. More substitution relationships were evident when households’ price changes are compensated. Originality / scientific novelty. This paper presents household’s responsiveness to food demanded through price effects with possible nutrition gap in urban diet. Practical value / implications. The complement and substitution relationship in household food price changes may be effective in changing urban consumer behavior towards healthier diets. Empirical knowledge of the complement and substitution effects would likely impact policy changes on household nutritional outcome. This is necessary as the scourge of malnutrition in increasing especially in urban areas

SPATIAL INTEGRATION OF MAIZE MARKET IN NIGERIA – A VECTOR ERROR CORRECTION MODEL

Agricultural commodities are produced over an extensive spatial area and are costly to transport relative to their total value as this inhibits efficient functioning of the markets. The study examined spatial market integration among geographically separated maize markets in Nigeria using monthly retail price data of maize grain from January 2001 – December 2010 in the selected producing and consuming states. The data were analyzed using Johansen co-integration and Vector error correction model (VECM). In the long run, the states were co-integrated and the rate at which VECM restored deviation from equilibrium was moderate. The study showed that spatial price linkages exist within maize market as products moved efficiently across market which is related to efficiency of price information flow. The study recommends that farmers should be provided with more price information in order to take advantage of spatial price differences