The nexus between maize importation, local production and local prices: Empirical analysis from Nigeria

Abstract

The study examined the relationship between maize importation, local prices and local production. Secondary data from 1970 to 2016 were employed. Unit root, co-integration and Ordinary Least Square (OLS) assumption tests were checked. Least Square estimation model, Pearson Coefficient and Generalized Least Model (GLM) were employed. The results show that strong linear relationship (-0.466) exist between local maize production and maize importation, though in opposite direction. The results from GLM shows that quantities of maize imported (-0.0324), sorghum production (-0.967) and population growth (-0.779) are statistically significant but negatively influences local maize production. Local price of maize (0.471) on the other hand is positive and significantly influences local maize production. There should be effective government policy to reduce maize importation.