Supply Response of Selected Agricultural Export Commodities in Nigeria

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This study investigates the supply response of seven (7) agricultural export commodities from Nigeria between 1970 and 2010.

Descriptive statistics was employed to examine growth rates and trends in exports, productions and prices.

While econometric Error Correction Model (ECM) was employed to estimate export supply behaviors of the seven commodities chosen: cocoa, benniseed, rubber, palm-oil, ground nut, cotton seed, and soybeans.

Quantitative estimates obtained from the Error Correction Model (ECM) estimation procedure indicates the following: The response of export supply to changes in relative price was positive and fairly significance for five (5) commodities except cocoa and soybeans.

Output growth and more credits to agricultural sector have positive and significance influence on the export supply of the commodities.

A change in road network positively and significantly affects export supply of ground nut, cotton and soybeans.

Exchange rate was significance for four commodities and was unexpectedly positive in most cases.

Rainfall was positive and significance to only perennial crops (cocoa, rubber and palm-oil).

Short-run export supplies responses range between 0.01 and 0.7

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