ASSESSMENT OF PRICE INTERGRATION OF COWPEA MARKETS IN GOMBE STATE, NIGERIA
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Date
2021
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Abstract
This study analysed urban and rural cowpea markets integration in Gombe State, Nigeria. It
specifically examined the socioeconomic characteristics of cowpea marketers, examined the trend
in the price of cowpea at the urban and rural markets and examined whether there was a long run
relationship between urban and rural market prices of cowpea. Multistage sampling method was
used to select one hundred and fifty (150) respondents and structure questionnaire was
administered on them to collect the required data. The secondary data used for the study was
obtained from Gombe State Agricultural Programme (GSADP). The methods of data analysis were
descriptive statistics, price trends analysis and co-integration. The descriptive statistics such as
tables, frequencies and percentages were used to describe the socioeconomic characteristics of the
respondents. Co-integration was used to establish the integration in cowpea prices between urban
and rural markets. The result of analysis of socio-economic characteristics shows that 2.5% of the
respondents were less than 20years of age in the urban markets, while only 5.7% of the respondents
were less than 20years of age in the rural markets. The percentage of respondents that were
between 21 and 30 years of age in the urban markets was 8.8% and 27.1% of the respondents in
the rural markets. About 15% of the respondents in the urban markets were between 31 to 40 years
of age while 34.3% of the rural respondents were between the ages of 31 to 40 years of age. The
urban markets had 99% of male respondents and 1% female respondents, while the rural markets
had 81.4% male respondent and 18.6% female respondents. About 32.5% of the respondents in
the urban markets had primary education while 37.1% of the respondents in the rural had primary
education. In the urban markets, 37.5% of the respondent had education up to secondary school
level whereas 30% of the respondents in the rural had secondary education. The maximum price
of cowpea in the urban area was found to be ₦450/kg which was obtained in July 2017. However
the minimum price in the urban area was obtained in January 2010 at the rate of ₦90/kg depicting
fluctuation in prices across various seasons. Similarly, for rural cowpea markets, the maximum
price attained was ₦400/kg in July, 2017, whereas the minimum price obtained was ₦80/kg
January, 2013. The price of cowpea was not stable across seasons in both urban and rural markets.
The co-integration test result for cowpea prices indicate one co-integrating equation in the market
pairs at 5% level of significance. Since the test statistics was greater than the critical value for the
market pairs. The null hypothesis (r=0) is therefore rejected at 5 percent level of significance. This
means that the two markets are linked together in the long run despite a potential short run
divergence between them. The result of pair-wise granger causality test for cowpea markets has
shown one significant directional (one-way) granger causality between the rural and urban cowpea
markets. Rural markets prices was however stronger as it granger caused urban prices at 5% level
significance. In conclusion the study shows that there are male dominant marketers of cowpea in
the urban and rural markets, market prices are cointegrated. Price relative stability to improve rural
markets/farmers in getting what is commiserates with cost and obtains profit. Governments’ efforts
should be geared at the provision of rural-oriented economical markets with available facilities in
both rural and urban markets for cowpea. Improved varieties should be made available for the
growers, so as to increase the volume for marketing and inter region marketing, exportation.