RICE OUTPUT RESPONSE TO COMMERCIAL LOAN TO AGRICULTURE IN NIGERIA FROM 1966 TO 2015
Journal Title: International Journal of Food and Agricultural Economics - Year 2018, Vol 6, Issue 4
Abstract
This study examined rice output response to commercial loan to agriculture (CLA) in Nigeria from 1966 to 2015. Employing the Augmented-Dickey Fuller test to analyze the level of stationarity of each of the series and applied the Autoregressive Distributed Lags (ARDL), via bounds testing to determine long-run elasticities as well as short-run elasticities of rice output. Rice output was responsive to producer price of rice with elasticity of 0.34 in the short run at 5% and elasticity of 0.66 at 1% in the long run. Producer price of maize was negative and significant in the short run with elasticity of -0.48 at 5% level of significance and elasticity of (-1.38) in the long at 1% level of significance. Rice output showed an insignificant elasticity of 0.19 in the short run but was elastic (0.3%) and significant at 5% in the long run. Furthermore, hectarage was highly significant at 1% with elasticity of 1.14 in the short run and elasticity of 1.4 in the long run in relation to the output. It was therefore concluded that CLA made intense impact on rice output in the long run. On this premise therefore, it is recommended that government should review its Land Use Act of 1978 to enable producers more access to land for rice cultivation, secondly government should increase such funds to ease producers the ability to procure all the necessary inputs and make the fund readily and promptly available.
Authors and Affiliations
Abraham Emmanuel Okpe, Orefi Abu, Innocent Uwaegbuonu Odoemenem
Keywords
Related Articles
- EP ID EP493795
- DOI -
- Views 123
- Downloads 0
INTERNATIONAL TRADE AND FOOD SECURITY: CAN PUBLIC STOCKHOLDING BE DISMISSED?
The food crisis of 2007-2008 led to a renewed interest in public stockholdings for food security purposes. Stock acquisition for food security is constrained by WTO rules. Developing countries petitioned the WTO to remov...
Price Transmission Analysis for Nicaragua Rice Market
Rice is the most important staple food for Nicaraguans. Analyzing price linkages among market levels is helpful for policy makers to evaluate the potential impacts of agricultural policy on producers and consumers, espec...
A Study on the Price Volatility in Wheat, Wheat-Flour and Rice Markets in Afghanistan
This research investigates the unconditional and conditional volatility in wheat, flour, and high and low quality rice price returns in Afghanistan. It also considers volatility spillover from the exporting countries and...
COINTEGRATION AND PRICE LINKAGES IN THE MERCOSUR BEEF CATTLE MARKETS
This research provides empirical evidence of the degree of integration of Mercosur region beef cattle markets with the international market. Prices for six spatially distinct cattle markets located in the four countries...
IMPACT OF CLIMATE CHANGE ON FOOD PRICE IN THE AFFECTED PROVINCES OF EL NINO AND LA NINA PHENOMENON: CASE OF INDONESIA
Climate change has become a global issue because it has a wide impact on a country’s socio-economic condition. The main factor influencing climate change in Indonesia is El Nino Southern Oscilliation (ENSO), consisting o...