Authors : S.A. Yusuf , K.K. Salimonu and U.B. Ajueshi
Abstract: Market liberalization is regarded as a major aspect of the structural economic policy reforms embarked upon by most developing countries. The policy was introduced in the Nigerian economy in 1986. The study examines the determinants of real price distribution of rice in pre-liberalized and post-liberalized period in Nigeria using Autoregressive Condition of Heteroskedastic in mean (ARCH-M) method. Lagged prices, trend and regional variation significantly determined the prices of rice while border parity price and real exchange rate were not significant in both periods. However, regional price differences were small in the pre- liberalization years than post-years. The real price distribution of rice decline in the pre- liberalization years while it dampened in the post-years due to the absence of stabilization programme by the government. Market support services, coordination of market information system and price stabilization programmes are therefore recommended.
S.A. Yusuf , K.K. Salimonu and U.B. Ajueshi , 2007. An ARCH-M Analysis of Liberalization and Rice Price Distribution in Nigeria. Research Journal of Applied Sciences, 2: 225-228.