Yield response of grain in Nigeria: A co-integration analysis

 Yield response of rice in Nigeria: A co-integration analysis Essay

American Diary of Cultivation and Forestry

2014; 2(2): 15-24

Published online January 20, 2014 (http://www.sciencepublishinggroup.com/j/ajaf) doi: 10. 11648/j. ajaf. 20140202. 11

Deliver response of rice in Nigeria: A co-integration analysis David Boansi

Department of Economic and Technological Transform, Center pertaining to Development Research (ZEF), University of Bonn, Germany

Current email address:

[email protected] com (D. Boansi)

To cite this article:

David Boansi. Yield Response of Rice in Nigeria: A Co-Integration Analysis. American Log of Farming and Forestry. Vol. 2, No . a couple of, 2014, pp. 15-24. doi: 10. 11648/j. ajaf. 20140202. 11

Fuzy: To help bridge information difference in source response studies for Nigeria and inform policy decision on how the demand-supply space for grain in Nigeria could be bridged, the current research through the use of Johansen's Full Data Maximum Likelihood test estimated a produce response model for Nigeria using nationwide level data for the period 1966-2008. The results claim that, increasing deliver levels pertaining to paddy grain in Nigeria and guaranteeing stability requires interplay of biophysical, socio-economic and strength forces. Simply by estimates intended for the current study, bridging in the demand-supply space can be realized through avertissement of actions to address issues in the source chain to ensure appropriate indication of selling price increment, advertising of community rice intake to ensure all set market to get farmers much more increasing output, addressing dirt fertility difficulties through efficient use of fertilizer and regular management of fertility of rice domains, and raising farmers access to credit to help them meet cost of relevant inputs of production. The latter recommendation could into a greater magnitude incite appropriate response of farmers to both cost and non-price incentives in the area. Diagnostic testing conducted suggest that the left over series is commonly distributed, non-serially correlated and homoscedastic.

Keywords: Co-Integration, Produce, Error Correction Model, Nigeria, Prices

1 ) Introduction

Using a population estimate of 174, 507, 539 persons and

population progress rate of 2. 54%, Nigeria happens to be not

only the leading producer of rice in West Africa, but also

among the leading importers of the commodity. Though

endowed with a strong gardening and natural resources

basic, as well as favorable climatic conditions intended for

agricultural development, an amount of about ₦1 billion is

put in daily by Nigeria about importation of rice [1]. Impeded

by sporadic policies on rice, poor methods of

production used by maqui berry farmers, high costs and scarcity of vital advices of production, etc, local rice production for Nigeria has failed to catch up with the increasing pace of

intake. By quotes observed from the agricultural

development database of FAO pertaining to Nigeria, the gap among

domestic require of grain for foodstuff (as against feed and other

uses) has widened because the late 1990s.

Treated with benign neglect prior to self-reliance due to

self-sufficiency, rice has become a strategic and political

commodity in Nigeria, attracting very much attention due to its

increasing role in the diet from the populace and its daily

draining of foreign exchange through imports. Rice accustomed to

be grouped as a luxury food item ahead of independence; it however today holds the status of a staple meals, replacing

cassava and yam among others [12]. The intake of

rice despite increasing prices induced through high tariff imposition has become increasing because the year 1976. Per

capita consumption of rice in the country increased via as

low as three or more. 4kg/year in 1976 to 20. 9kg/yr last year [15], an

boost of above 500%. Creation has nevertheless failed to

meet up with the increasing demand for grain, leading to

widening of the gap between household production and

demand, raising the function of brought in rice in diets of the Nigerian people, and producing the country a net importer


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