Publisher: Bachudo Science Co. Ltd

Spatial Price Efficiency of Maize In Borno State, Nigeria

E. A. Ali, A. C. Iheanacho
KEYWORDS: Spatial price, Efficiency, Maize. Market

ABSTRACT:

The study determined spatial price efficiency of maize for eight rural and urban markets of Bomo state of Nigeria. weekly time series and cross sectional data were used in the study. The time series price data were collected over a period of nine months and the cross sectionai data were through questionnaires and interview schedule Forty respondents, five for each market were used. Descriptive statistic, spatial price efficiency model and ordinary least squares (OLS) regression techniques were used to analyse the data. The results show that there was great variability in prices of maize among the markets Monthly price differentials of maize in the supplying markets were significantly different from zero. It ranged from as low as - N200 in Baga road to as high of N1060 per 100kg bag in Peta market. The degree of integration between markets revealed that 43% of maize wholesale price association was 0.9 and above, implying high degree of price association between markets. For retail-wholesale price relationshrp. Monday market and Saga road markets had is of 0.9 and above indicating that the wholesale price of maize had an effect on the retail price. The price elasticity of maize in Baga road market was greater than one (Ep>1 ). It was recommended that improvement of the existing roads is necessary to improve market integration. The emphasis on infrastructural development should, therefore, not simply be on the construction of new roads, but on the improvement of the existing ones by the government.


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