ABSTRACT
The study estimated the demand function as well as the
relevant elasticities for cocoyam in Oru East Local Government area using the
ordinary least square (OLS) criteria which is an econometric method. Relevant
survey data were generated from 60 farmers over a period of time, selected
using the simple random sampling technique. The regression results shows that
price of cocoyam and income were the only significant variable that affects the
demand for cocoyam. The income is negatively related to the demand for cocoyam
while the price of cocoyam was positively related to the demand for cocoyam.
The elasticity of demand for cocoyam with respect to price is 13.66 indicating
an elastic demand for cocoyam. The cross price elasticity of demand for yam is
119.70, suggesting that the two commodities are substitutes. An infinitesimal
increase in the price of cocoyam is likely to result in a large increase in the
demand for yam. The cross price elasticity of demand for Cocoyarn is —1.607,
Implies that Cocoyam is a complementary good. This implies that an increase in
consumption of Cocoyam is likely to result in a large decrease in the
consumption of yam. Also the income elasticity of demand is (-22. 28) being
negative shows that cocoyam is an inferior good. The study suggest proper
evaluation of impact of price and income changes not only on cocoyam but other
cash and food crops as this will guide policy makers in formulating good farm
and economic policies for economic development. 'p x cultivation has become
very popular. This is true because large area of land are given to its
cultivation, Eyo, et at, 2000). Cocoyam is a major food crop in Nigeria,
especially in the Southern parts where it is cultivated extensively mainly for
local consumption. It has been reported by (Irvine, 1969) to be third in
importance as a staple root/tuber crop after yam and cassava in Nigeria
(Irvine, 1969). Nigeria is the largest producer of cocoyam in the world with a
production figure of about 1 .8m tonners per annum (Olayide et a!, 1972) 40% of
the total production figure in the world. The production is carried out by
mainly rural farmers. in Nigeria, Imo State is the major Cocoyam producing
state (Knapschear and Wilson, 1980). Inspite of this position of Cocoyam in
this country, detailed information on its where in the farming systems of
Imo-state is rather scarcity, instead a drastic fall in its supply has been
noticed in recent times. The concept of demand is very important in economic
theory. It is also asserted that the majority of economic problems such as the
drastic fall in the supply of cocoyam which we encounter in everyday life can
be explained by a careful examination of the demand for and supply of the
commodity.
AKUBUDE, K (2021). Econometric Analysis Of The Demand For Cocoyam In Oru East Local Government Area Of Imo State. Mouau.afribary.org: Retrieved Nov 24, 2024, from https://repository.mouau.edu.ng/work/view/econometric-analysis-of-the-demand-for-cocoyam-in-oru-east-local-government-area-of-imo-state-7-2
KELECHI, AKUBUDE. "Econometric Analysis Of The Demand For Cocoyam In Oru East Local Government Area Of Imo State" Mouau.afribary.org. Mouau.afribary.org, 11 Oct. 2021, https://repository.mouau.edu.ng/work/view/econometric-analysis-of-the-demand-for-cocoyam-in-oru-east-local-government-area-of-imo-state-7-2. Accessed 24 Nov. 2024.
KELECHI, AKUBUDE. "Econometric Analysis Of The Demand For Cocoyam In Oru East Local Government Area Of Imo State". Mouau.afribary.org, Mouau.afribary.org, 11 Oct. 2021. Web. 24 Nov. 2024. < https://repository.mouau.edu.ng/work/view/econometric-analysis-of-the-demand-for-cocoyam-in-oru-east-local-government-area-of-imo-state-7-2 >.
KELECHI, AKUBUDE. "Econometric Analysis Of The Demand For Cocoyam In Oru East Local Government Area Of Imo State" Mouau.afribary.org (2021). Accessed 24 Nov. 2024. https://repository.mouau.edu.ng/work/view/econometric-analysis-of-the-demand-for-cocoyam-in-oru-east-local-government-area-of-imo-state-7-2