Price Transmission and Signals of Cowpea across Zones and Value Chains in Niger State, Nigeria

Abstract

This research study examines the price transmission and signals of cowpea across zones and value chains in Niger State, Nigeria, using monthly time series data from January 2003 to December 2016. The study employs a linear and symmetric price transmission model and analyzes price data from three major urban cowpea markets and their respective rural markets. The results of the study indicate that the urban and rural markets are well connected in terms of price transmission, with the Bida market being more efficient than its counterparts. The study also finds that price signals across zones and value chains are well transmitted, and changes in one zone influence prices in other zones. However, the intensity and direction of price changes may be affected by the demand and supply of cowpea. The study recommends a proper focus on domestic supply management alongside international trade, together with strong market surveillance and intelligence efforts to control escalating prices and minimize market distortions that widen the gap between wholesale and retail prices of cowpea