Root and Tuber Crop Market System in Nigeria Macroeconomic Determinants

Author(s): Onwusiribe Ndubuisi Chigozirim, Oteh Ogbonnaya Ukeh, Agwu Nnanna Mba, Okpokiri Chibuzo, Oloveze Ambrose Ogbonna

DOI: doi.org/10.56527/jabm.12.1.3

Keywords: Export, import, market, root, tuber, macroeconomic

Abstract: Root and tuber crops are food security crop and thus have wide market preference and value in many economies. However, they are constrained by a convergence of external factors that impact on their production, marketing and export potential. The study opened conversations on the market system of root and tuber crops and examined macroeconomic variables that influence Nigeria market commercialization drive and competitiveness in both regional and international trade, using cross sectional data from 1960 to 2016 sourced from the Central Bank of Nigeria (CBN) statistical bulletin, Food and Agriculture Organization (FAO) database and World Bank Development indicators. Analytically, the study employed econometric tools such as unit root tests, trend analysis (i.e. quadratic equation), Generalized Method of Moments, Malmquist productivity index, Autoregressive Distributed Lag (ARDL) model. Findings revealed that macroeconomic variables of exports, imports, and inflation, exchange rate, tariff, price and world exports had long-run and short-run impacts on the exports of root and tuber crops. The study recommends market-oriented strategy by caution against protectionist led interventions such as outright ban on importation, as they impact negatively on market behaviour; rather advocated for effective policing of border to check smuggling, also improvement in policies that improve production to check price instability, which characterize root and tuber crop marketing in Nigeria. There is need for effective regulation and policies that protect risk and guarantee returns in the supply chain of root and tuber crops so that supply-chain actors can benefit substantially from international trade.

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