Price Causality and Bivariate Autoregressive Analysis of Dry Season Okra Marketing in Southeastern Nigeria

Ikechi Kelechi Agbugba*

Department of Agricultural Economics, University of Nigeria Nsukka, Enugu State Nigeria.

DOI : http://dx.doi.org/10.12944/CARJ.1.2.05

Abstract:

The study examined the price causality tests and Bivariate auto-regressive analysis of dry season Okra in south eastern Nigeria. The study specifically described the socio-economic features of dry season Okra marketers in the study area, determine the price causality in the marketers’ prices of dry season vegetable in the study area and measure the extent of market integration amongst dry season vegetable markets in the study area. Multi-stage technique of sampling was used to select 111 Okra marketers in the study area, and structured questionnaires administered to them. Descriptive statistics such as percentages and frequencies were used to analyze the socio-economic features, as well as determine the price causality in the marketers’ prices of the respondents. Granger causality test conducted showed that there was no causality relationship existing between the farmgate and wholesale prices for Okra wholesalers; and a unidirectional price causality relationship existing from the wholesale price of Okra and retail price, and not the other way. Bivariate autoregressive model was used to measure integration between central and local markets. From the study, there was a significant relationship between the central and local market prices for Okra wholesalers and retailers. The result also showed that there was an instantaneous adjustment to price changes in the market pairs of the marketers, an indication of perfect competitiveness amongst them suggesting the existence of non-collusive pricing behaviour.

Keywords:

Okra, Dry Season, Market, Marketing, Marketers, Nigeria

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