ABSTRACT
The study
examined the price transmission and market integration of Cowpea (Beans) in the
rural and urban markets of Ahia State, Nigeria. Average monthly prices
(measured in naira per kilogram) of Cowpea in rural and urban markets were used
in the analysis. The study made used of secondary data and the data was
obtained from the quarterly publications of the Abia State Agricultural
Development Programme (Abia ADP). The data covered the period; January 2000 to
June 2014. Descriptive statistics and econometric tools were used to analyze
the data obtained. The trend analysis showed that, prices of cowpea in the
rural and urban markets had exponential growth rates that were less, than
unity, which suggested a possible co-movement of these prices in the study area.
Also, the Pearson correlation coefficient generated for the pair of rural and
urban· prices of cowpea revealed significant linear symmetric relationships.
The result implies the existence of symmetric market information flows between
the· rural and urban markets of cowpea in Ahia state. The Granger causality
test revealed bi-directional relationships between the rural and urban price of
cowpea in the study area: The co-integration test revealed the presence of
co-integration between the rural and urban prices of cowpea. The coefficients
of the price variables in the co-integration equations converged to unity or
law of one price which implied perfect market integration in the long run. The
results of the error correction model (ECM) also confirm the existence of the
short run market integration between the rural and urban prices of cowpea in
the study area. In addition> it was discovered that, the rural price of
cowpea adjusted slower to the stable state in the long run than the urban
price· and vice versa. The index of market connection (]MC) supported the high
short run market integration for prices of cowpea in rural and urban markets in
Abia state. The study concluded that the price of cowpea in either rural or
urban markets in Abia state depends on each other's price movement at any given
period in time. The study recommended that, the Ahia State government should
continue to provide marketing infrastructures and reduced externality costs in
order to improve further the symmetric nature of infonnation flow among cowpea
markets in the state.
DAVID, C (2023). Evaluation of Price Linkage within the Demand Chain of Cowpea markets in Abia State:- Ibeabuchi, David C.. Repository.mouau.edu.ng: Retrieved Dec 06, 2024, from https://repository.mouau.edu.ng/work/view/evaluation-of-price-linkage-within-the-demand-chain-of-cowpea-markets-in-abia-state-ibeabuchi-david-c-7-2
CHUKWUDI, DAVID. "Evaluation of Price Linkage within the Demand Chain of Cowpea markets in Abia State:- Ibeabuchi, David C." Repository.mouau.edu.ng. Repository.mouau.edu.ng, 11 Dec. 2023, https://repository.mouau.edu.ng/work/view/evaluation-of-price-linkage-within-the-demand-chain-of-cowpea-markets-in-abia-state-ibeabuchi-david-c-7-2. Accessed 06 Dec. 2024.
CHUKWUDI, DAVID. "Evaluation of Price Linkage within the Demand Chain of Cowpea markets in Abia State:- Ibeabuchi, David C.". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 11 Dec. 2023. Web. 06 Dec. 2024. < https://repository.mouau.edu.ng/work/view/evaluation-of-price-linkage-within-the-demand-chain-of-cowpea-markets-in-abia-state-ibeabuchi-david-c-7-2 >.
CHUKWUDI, DAVID. "Evaluation of Price Linkage within the Demand Chain of Cowpea markets in Abia State:- Ibeabuchi, David C." Repository.mouau.edu.ng (2023). Accessed 06 Dec. 2024. https://repository.mouau.edu.ng/work/view/evaluation-of-price-linkage-within-the-demand-chain-of-cowpea-markets-in-abia-state-ibeabuchi-david-c-7-2