TRADE OPENNESS AND FOOD PRICE DYNAMICS: IMPLICATIONS FOR FOOD SECURITY IN NIGERIA
Shekwoduza Sarah Agara and Rebecca Dominic Apeh
Volume 6 Issue 3
Abstract
The study assessed the impact of trade openness and food prices on food security in Nigeria using a time series data that covers the period of 1981-2022. The data were sourced from world development indicator and central bank of Nigeria statistical bulletin. The study employed Augmented Dickey Fuller (ADF) and Phillip Perron Unit Root Tests, and Bound testing Co-integration as pre-estimation technique and used ARDL model estimate both long run and short run coefficients. The findings in long run model, shows LCPI (food prices) and LAGLD (agricultural land) positively and significantly impact food security in Nigeria. While LREER (real effective exchange rate) was significant, but negatively related to food security. The study therefore, recommends the government through monetary and fiscal authorities manage the foreign exchange in order for local currency to appreciate and control inflation so that the purchasing power of the household consumer will rise in the country thereby making food more accessible and affordable to the people. Also, the government should make agricultural policies that encourage mechanized farming to fully utilise the idle vast land to boost food security in Nigeria. Keyword: Trade Openness, Food Security, Food Prices
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