The nexus between maize importation, local production and local prices: Empirical analysis from Nigeria

Abstract

The study examined the relationship between maize importation, local pricesand local production. Secondary data from 1970 to 2016 were employed.Unit root, co-integration and Ordinary Least Square (OLS) assumption testswere checked. Least Square estimation model, Pearson Coefficient andGeneralized Least Model (GLM) were employed. The results show thatstrong linear relationship (-0.466) exist between local maize production andmaize importation, though in opposite direction. The results from GLMshows that quantities of maize imported (-0.0324), sorghum production (-0.967) and population growth (-0.779) are statistically significant butnegatively influences local maize production. Local price of maize (0.471)on the other hand is positive and significantly influences local maizeproduction. There should be effective government policy to reduce maizeimportation.