Empirical Assessment of Maize Price Dynamics and Market Integration in Selected Regional Markets of Benue State, Nigeria.

Abstract

This study investigated how maize prices move in selected regional markets in Benue State, Nigeria. The researchers looked at monthly maize price data from January 2008 to December 2018 to determine if the price series in these different markets were connected. Specific tests were used to determine if the prices influenced each other over time (market integration) and, if so, which market (rural or urban) tended to lead the price changes in the state. The result revealed that maize prices eventually stabilized over time (became stationary) and that rural and urban markets were indeed connected. There was also evidence of some level of market integration in the short term. Interestingly, the price changes in one market didn't always directly cause changes in the other market. In some cases, price changes seemed to flow in both directions. Based on these results, this study therefore recommends that the all stakeholders provide information centers and use media channels to improve communication between maize producers and consumers in the state; as this would allow actors to make more informed decisions about maize marketing.