An Empirical Analysis of The Prices of Nigeria's Agricultural Export Commodities:
No Thumbnail Available
Files
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Description
The study examines the role of price incentives in expanding agricultural commodity exports.
Using the concept of efficiency, based on the theory of opportunity cost, nominal and effective
protection coefficients (NPC & EPC) were estimated for cocoa, coffee, cotton, palm kernel,
palm oil, rubber and soyabean. Their world market prices served as the efficiency benchmarks
in order to determine the pattern of incentives or disincentives to the Nigerian agricultural
export sector. The NPC values obtained ranged from 0.47 for cotton to 1.18 for soyabean
pre-Structural Adjustment Programme (SAP) and during the SAP the values ranged from
0. 63 to 2.14 f or the respective crops. This result confirmed that incentives improved
substantially for export crop production during the SAP. The result of the EPC analysis
complemented that of the NPC which indicated that incentives were more in favour of the
production of soyabean, a non-traditional export crop in Nigeria. Consequently, the study
concluded that the programme for boosting industrial and export crop production recently
launched by the Federal Government should emphasise the production of soyabean in order
to diversify our agricultural export base, along with palm produce and rubber particularly
now that oilseeds and rubber have better prospects in the world market.
Keywords
H Social Sciences (General), HG Finance