AI Summary & Key Takeaways
AI InsightIt is recommended that the government should implement policies and regulations that will control and stabilize those macroeconomic factors that can agitate increases in food prices and cause food price shocks.
📌 3 Key Takeaways
Abstract
In a developing country such as Nigeria, fluctuation in macroeconomic factors can bring about food price shocks and food insecurity. It is important to investigate whether food price shocks have impacted the food security status of net food buying households. This study specifically examines the effect of food price shocks on the food security status of net food buying households in Nigeria. Secondary data were elicited from Central Bank of Nigeria and National Bureau of Statistics for the 1995-2016 years period. In analyzing the collected data, descriptive statistics (mean and percentage), coefficient of variation and regression model were used. The result revealed that all macroeconomic factors except exchange rate have a positive and significant relationship with food price shock. The result also indicated a 64.35% variation in food price shock with a variation of 38.07% in consumption expenditure (food security status) over the time period. On account of this, minimum consumption expenditure was over N1,304 compared to the World Bank consumption expenditure per person. Hence revealing that net buying households have extremely high cost of living and low welfare status (food security status). On the basis of this findings. It is recommended that the government should implement policies and regulations that will control and stabilize those macroeconomic factors that can agitate increases in food prices and cause food price shocks. This study had filled the knowledge gap by providing information on the degree to which food price shocks can affect the food security status of net food buying households in Nigeria.
Özet
In a developing country such as Nigeria, fluctuation in macroeconomic factors can bring about food price shocks and food insecurity. It is important to investigate whether food price shocks have impacted the food security status of net food buying households. This study specifically examines the effect of food price shocks on the food security status of net food buying households in Nigeria. Secondary data were elicited from Central Bank of Nigeria (CBN) and NBS (National Bureau of Statistics) for the 1995-2016 years period. In analyzing the collected data, descriptive statistics (mean and percentage), coefficient of variation and regression model were used. The result revealed that all macroeconomic factors except exchange rate have a positive and significant relationship with food price shock. The result also indicated a 64.35% variation in food price shock with a variation of 38.07% in consumption expenditure (food security status) over the time period. On account of this, minimum consumption expenditure was over N1, 304 compared to the World Bank consumption expenditure per person. Hence revealing that net buying households have extremely high cost of living and low welfare status (food security status). On the basis of this findings. It is recommended that the government should implement policies and regulations that will control and stabilize those macroeconomic factors that can agitate increases in food prices and cause food price shocks. This study had filled the knowledge gap by providing information on the degree to which food price shocks can affect the food security status of net food buying households in Nigeria.