Rice trade policy and productivity: empirical evidence from Nigeria’s Rice sub-sector

Volume 11, Issue 1, Article 7 - 2021

Authors: Ogheneruemu Obi-Egbedi;Olaide A Akin-Olagunju;Isaac B Oluwatayo

Copyright © 2021 . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Abstract

Low productivity, modest production and large-scale importation characterize Nigeria’s rice subsector despite government intervention through trade policy measures since independence. Studies on Nigeria’s trade policy and rice productivity are scanty in the literature. Therefore, this study investigated the effect of the country’s rice trade policy on rice productivity from 1961-2017, employing the Vector Error Correction Modeling approach. The results show that protectionist trade policy reduced rice productivity in the short run but was not significant in the long run. Producer price and domestic consumption improved rice productivity in the short run although, the latter reduced productivity in the long run. Similarly, fertilizer consumption and exchange rate reduced productivity in the short run but exchange rate increased productivity in the long run. Thus, government should focus on exchange rate, liberalized trade policy and appropriate fertilizer policy to improve Nigeria’s rice productivity.

How To Cite This Article

Obi-Egbedi, Ogheneruemu et al. (2021). Rice trade policy and productivity: empirical evidence from Nigeria’s Rice sub-sector. Global Journal of Economics and Business, 11(1): 96-106
https://doi.org/10.31559/GJEB2021.11.1.7