Price Transmission and Causality in Rural and Urban Meat Markets in Ondo State, Nigeria

  • Aturamu, O.A Department of Agricultural Science and Technology, Bamidele Olumilua University of Education, Science and Technology, P.M.B 250, Ikere-Ekiti, Ekiti State, Nigeria.
  • Ogunbusuyi, O.P. Department of Agricultural and Resource Economics, Federal University of Technology, P.M.B 704, Akure, Ondo State, Nigeria.
  • Etamesor, E.O. Rufus Giwa Polytechnic, P.M.B 1019, Owo, Ondo State, Nigeria.
  • Olutumise, A.I. Department of Agricultural Economics and Extension, Adekunle Ajasin University, P.M.B 001, Akungba-Akoko, Ondo State, Nigeria
Keywords: Causality, Cointegration, Markets, Meat, Ondo State, Prices


The study examined the price transmission and causality in rural and urban meat markets in Ondo State, Nigeria using average monthly data specification between March, 2014 and July, 2018 (53 observations). Descriptive statistics, Augmented Dicky-Fuller (ADF), Johansen cointegration technique and pair-wise Granger causality tests were used to analyse the data. The results showed that all the price series in both rural and urban meat markets were stationary of order one using ADF test. The cointegration estimates (trace and max-eigenvalue tests) depicted that there was no cointegration in the urban meat prices but there was presence of long-run relationship in the rural meat prices. The results of cointegration between the rural and urban prices for each meat showed at least one cointegrating equation with skin meat having two cointegrating equations. The Granger-causality tests indicated that 6 meat price series in the urban and rural markets, apiece rejected the null hypothesis of no causality, while 19 meat prices in the rural-urban market link rejected the null hypothesis of no causality. The market reflected both uni-directional and bidirectional causalities in the area and there was a high level of the prices influencing themselves in the urban, rural and rural–urban meat markets. It can be recommended that any policy on marketing strategy that would improve efficient flow of price information, provide infrastructural development in meat market, and as well checkmate the activities of the middlemen against price hike should be given a priority.


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How to Cite
Aturamu, O.A, Ogunbusuyi, O.P., Etamesor, E.O., & Olutumise, A.I. (2021). Price Transmission and Causality in Rural and Urban Meat Markets in Ondo State, Nigeria. Nigerian Journal of Animal Science and Technology (NJAST), 4(2), 13 - 27. Retrieved from