Title:
ANALYSIS OF SPATIAL PRICE TRANSMISSION OF CASSAVA PRODUCTS BETWEEN RURAL AND URBAN MARKETS IN EKITI STATE, NIGERIA

Authors:
IBRAHIM, Ajolola Taibat, SEKUMADE, A. B. and OWOEYE, R. S., Nigeria

Abstract:

This study investigated spatial price transmission of cassava products in urban and rural markets in Ekiti State, Nigeria. The study made use of secondary data where average monthly prices of cassava products spanning between March, 2014 and February, 2019 were sourced from NBS, Ekiti State Ministry of Commerce and Industry. Descriptive statistics, profitability analysis, vector error correlation model and impulse responses factors were used in analyzing the data. The results of spatial price transmission level between urban and rural markets of cassava products showed that there was presence of long run equilibrium in all the product price pairs between urban and rural markets. The implication of the E.C.M result is that the whole system is returning back to equilibrium at a speed of 1.5%, 13.2%, 19%, 13.8%, and 1.4% for yellow gaari, white gaari, cassava flour, tuber and fufu respectively. Again, the results of Granger causality tests revealed that yellow gaari and cassava flour took the leading positions in the cassava products price formation and transmission between urban and rural markets.