Effect of Market Reforms on Cotton Agriculture in Nigeria (1960-2010)

Abstract

This study examined the effect of market reform on cotton agriculture in Nigeria using time series data on cotton production from a period of 1960 to 2010.The Autoregressive Distributed Lags (ARDL) modeling approach to co-integration analysis was employed to analyze the data. Results based on co-integration and error correction specification indicated that the exchange rate, import price, external reserve and SAP are the major determinants of cotton production in the long-run while exchange rate and SAP are the major determinant in the short-run. Findings indicated that market reform has a positive and significant effect on Nigeria’s cotton production both in short-run and long-run.

KEYWORDS: Cotton, SAP, ARDL, Co-integration.