Impact of inflation and government agricultural policies on relative price variability of cash crops in Nigeria

Type Journal Article - Report and Opinion
Title Impact of inflation and government agricultural policies on relative price variability of cash crops in Nigeria
Author(s)
Volume 2
Issue 5
Publication (Day/Month/Year) 2010
Page numbers 8-13
URL http://www.sciencepub.net/report/report0205/02_2817_report0205_8_13.pdf
Abstract
The paper investigated the impact of inflation and government agricultural policies on relative
price variability of cash crops in Nigeria using co-integration and ECM approach. The analysis was carried
out on time series data collected from 1970 to 2008. The result shows that inflation has a significant
positive impact on relative price variability in the short-run and long-run. Polices like Structural
Adjustment Programme (SAP), Post-Structural Adjustment Programme (PSAP) and Green Revolution
(GR) affected price changes that led to efficient re-allocation of resources among cash crops in Nigeria. It
is therefore recommended that long-run government agricultural policies should therefore be continued and
also, policies that would protect the agricultural sector from the impact of inflation in the short-run should
be encouraged

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