ANALYSIS OF YAM (Dioscorea spp) PRICES IN THE URBAN AND RURAL MARKETS IN THE WESTERN AGRICULTURAL ZONE OF NASARAWA STATE, NIGERIA

Abstract

This study was conducted to examine the relationship between the prices of yam (Dioscorea spp) in the urban and rural markets of the western agricultural zone of Nasarawa State, Nigeria. Data of monthly urban and rural prices on yam were collected from Nasarawa State Agricultural development programme. The result of the descriptive statistics showed that the minimum (13.89) and maximum (500.00) prices were recorded in Toto and Nasarawa respectively. The result of the ADF test shows that the price series in the western zone were all stationary both at level I(0) and at first difference I(1) except for Toto that did not attain stationarity at level I(0) but attained stationary after first differencing I(I). The co-integration result shows that only four (4) pairs were not co-integrated and these were Nasarawa/Laminga, Masaka/Gitata, Masaka/T-Uku and Masaka/Ara. Also from the result of the Granger-causality test, sixteen yam market links of urban and rural market investigated, fifteen yam market links showed the evidence of no granger –causality, they all exhibited evidence of Uni-directional price movement. The rural prices of yam exhibited weak exogeneity to their corresponding urban market prices. There is need for improvement of road networks, transport and market infrastructure. The study recommended policy interventions for improvement of market integration which may take form of price formation channels, and improvement of market infrastructure including transportation and road network, such policy should works to reduce transport cost and enhance trade between rural and urban markets.