The effect of monetary aggregates on domestic absorption of cocoa in Nigeria

Abstract

The main objective of this study is to examine the effect of monetary aggregates of demand and supply on domestic cocoa absorption in the country. Data from 1970-2000 were obtained from official sources including the Central Bank of Nigeria (CBN) Annual Reports and Statistical Bulletins and the Statistical Database of the Food and Agriculture organization (FAO) of the United Nations, among others. While the semi-log functional form was used (as the lead equation) to estimate the aggregate demand and supply models, the exponential form was preferred for the agricultural domestic absorption model. Both models used the adaptive Nerlovian partial adjustment mechanism. Domestic price level was identified to affect cocoa absorption negatively and significantly while exchange rate depreciation had a significant and positive effect. Real income was found to affect money demand by 4.4 percent in the short run and 24 percent in the long run. On the strength of these findings, the study recommends policies towards a lowering of interest rate and the rate of inflation now and the streamlining of the existing extension service programmes to include provision of easy access to inputs for farmers so as to increase cocoa supply.

Determinants of Rice Import Demand in Nigeria

“…Several investigations carried out so far into identifying the determinants of rice and other food imports in Nigeria have gone beyond simple associations by covering different variables including local production (output) of the imported commodity, total import value, external reserves, exchange rate, and industrial capacity utilization, among others. Worthy of note are studies on determinant of rice import demand; roles of political and economic environments on rice import demand by Sunday et al, 2016, effects of various trade policy instruments such as tariff, import restrictions, outright ban on rice import and other determinants on the import demand for rice in Nigeria by Ogundele 2007, rice production, imports and food security in Nigeria by Nkang et al; However, variables such as Price of rice complement, price of rice substitute, domestic stock variation and rice consumption were not included in all the past studies examined. Hence, the need to critically assess the determinants of rice import demand in Nigeria.…”

Determinants of Domestic Supply of Cocoa in Nigeria (1980-2019)

“…However, this reform has not yielded the anticipated results, as cocoa production has become stagnant. Currently, farmers sell their products indirectly through a cooperative or a licensed buying agent who in turn sells them to exporting firms (Nkang et al, 2006 andAfolayan, 2020).…”