MARKET INTEGRATION ANALYSES OF COWPEA (Vigna unguiculata [L] Walp) IN SELECTED LOCAL GOVERNMENT AREAS OF GOMBE STATE, NIGERIA

Abstract

The study analyses market integration of cowpea (Vigna unguiculata [L.] Walp) in selected Local Government Areas of Gombe State, Nigeria. Secondary data were obtained on monthly average retail prices per 100kg bag of Cowpea for the period 2012 – 2019 from Bureau of Statistics, Gombe State. Data collected were analyzed using Augmented Dicky Fuller test, Engel and Granger test and pairwise Granger causality test. Augmented Dicky Fuller test indicates that the price series were non stationary at levels, but at first differencing the price series were integrated of order I(1). Engel and Granger two step cointegration test results revealed a coefficient of 0.54 and 0.34 for Billiri and Yamaltu Deba respectively. The value of R² was high at 71.09%. The residual base test results indicated an Engle-Granger tau-statistic of - 3.333168 with P-value of 0.14 at 5% level of probability.  It was also established that the price series data for Billiri market was the price leader. The study concluded that the price series were non-stationary at levels, but at first differencing the price series were stationary and integrated of order I(1). Only unidirectional causal relationship exists between price series data for Billiri and Gombe, Billiri and Yamaltu/Deba, Gombe and Yamaltu/Deba.  It was recommended that policy by stakeholders should therefore be market specific addressing the needs of each market, improvement of existing markets functions through enhanced access to market information, the establishment of market infrastructure including physical buildings, road networks and storage facilities at low cost.