Analysis of Determinants of Demand for Rice in Sokoto North Local Government Area, Sokoto State
Sule Muhammed *
Department of Economics, Nnamdi Azikiwe University, Awka, Nigeria.
Okaforocha Chika Maureen
Department of Economics, Nnamdi Azikiwe University, Awka, Nigeria.
Itodo Christian Itodo
Department of Economics, Nnamdi Azikiwe University, Awka, Nigeria.
Vicent Chuks Okafor
Department of Economics, Nnamdi Azikiwe University, Awka, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
The research work analyzed the determinants of demand for rice in Sokoto North Local government Area of Sokoto state, Nigeria. Primary data were sourced using quota sampling technique to select 120 respondents from the study area with the aid of questionnaires. Statistical Package for Social Sciences (SPSS) was used to analyze the data. The use of tables, percentages and frequency counts form parts of the descriptive statistics while the inferential statistics include ordinary least square (OLS) multiple regression analysis. The results of regression have shown price of rice, household size and income of household to be statistically significant at 1%, 5% and 1% level respectively. The prices of substitute commodities were not significant. The demand for rice was found to be price inelastic; the income elasticity was positive and elastic, making rice a normal good. However, cross price elasticity with substitute commodities were not significant. Income of household being elastic affected the demand for rice in the area than price of rice. The study concluded that the statistically significant variables were responsible for the demand for rice in the study area. It finally recommended domestic production and milling of rice and value addition be encouraged with a view to discouraging importation of rice, saving foreign exchange and improving consumers’ real income among others.
Keywords: Demand, determinants, rice, elasticity, Sokoto North