COWPEA MARKET DYNAMICS: A STUDY ON PRICE TRANSMISSION AND SIGNALS IN NIGER STATE
Keywords:
Price transmission, cowpea, value chains, Niger State, Nigeria, market efficiencyAbstract
This research study investigates the interconnection between urban and rural cowpea markets in
Niger State, Nigeria, with a focus on price transmission and signals. The study uses monthly time series data
from 2003 to 2016 and a linear and symmetric price transmission model to analyze price data from three major
urban markets and their respective rural markets. The study finds that the Bida market is more efficient than
its counterparts and that price signals across zones and value chains are well transmitted, although the intensity
and direction of price changes may be influenced by the supply and demand of cowpea. The study
recommends a focus on domestic supply management, strong market surveillance and intelligence efforts, and
the control of escalating prices to minimize market distortions that widen the gap between wholesale and retail
prices of cowpea.
