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

Authors : Kehinde Paul Adeosun, Eberechukwu Johnpaul Ihemezie, Chukwuma Otum Ume, Livinus Uchenna Egu

Pages : 201-213

Doi:10.29023/alanyaakademik.481553

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Publication Date : 2019-05-31

Article Type : Research Paper

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 insert ignore into journalissuearticles values(OLS); assumption tests were checked. Least Square estimation model, Pearson Coefficient and Generalized Least Model insert ignore into journalissuearticles values(GLM); were employed. The results show that strong linear relationship insert ignore into journalissuearticles values(-0.466); exist between local maize production and maize importation, though in opposite direction. The results from GLM shows that quantities of maize imported insert ignore into journalissuearticles values(-0.0324);, sorghum production insert ignore into journalissuearticles values(-0.967); and population growth insert ignore into journalissuearticles values(-0.779); are statistically significant but negatively influences local maize production. Local price of maize insert ignore into journalissuearticles values(0.471); on the other hand is positive and significantly influences local maize production. There should be effective government policy to reduce maize importation.
Keywords : Agricultural development, Import substitution, Generalized Least Square