The International Institute for Science, Technology and Education (IISTE)
Abstract
This study examined the effect of market reform on cotton agriculture in Nigeria using time series data on cotton production from a period of 1960 to 2010.The Autoregressive Distributed Lags (ARDL) modeling approach to co-integration analysis was employed to analyze the data. Results based on co-integration and error correction specification indicated that the exchange rate, import price, external reserve and SAP are the major determinants of cotton production in the long-run while exchange rate and SAP are the major determinant in the short-run. Findings indicated that market reform has a positive and significant effect on Nigeria’s cotton production both in short-run and long-run. KEYWORDS: Cotton, SAP, ARDL, Co-integration
