A DISEQUILIBRIUM MODEL OF THE DEMAND FOR AND SUPPLY OF RICE PADDY IN NIGERIA
- Efayena O. Obukohwo
- Enoh H. Olele
- Patricia N. Buzugbe
- ( paper pages. 1 - 13 )
Abstract
In the face of recent economic upheavals, the need to feed an ailing and hungrysociety cannot be overemphasized. This was clearly seen in the economictremors felt in the Nigerian economy when the government put a sledge on theimportation of major food products. One of the products highly affected wasrice paddy, which had a spiral pattern of consumption. With the recent rush inthe demand of rice paddy and inadequacy in its supply, it became imperative tomodel the disequilibrium in the demand for and supply of rice paddy inNigeria. In order to achieve this, a simultaneous equations model was adopted.Applying 3-stage least squares (3SLS) technique to time series data spanning1980-2015, the study found that demand for and supply of rice were priceinelastic. It suggested, therefore, that there should be policy that wouldstimulate sustained increase in domestic rice production capacity whilemaintaining the fragile and volatile market of the commodity.
Citation
Efayena O. Obukohwo, Enoh H. Olele, Patricia N. Buzugbe.
2018.
"A DISEQUILIBRIUM MODEL OF THE DEMAND FOR AND SUPPLY OF RICE PADDY IN NIGERIA"
The Nigerian Journal of Economic and Social Studies,
60 (2): 1 - 13.
JEL Classification
D58, 013, Q15
