Oil and Food Price Before and During COVID-19 Pandemic in Nigeria: A Non-Linear ARDL Approach-Reference-Cited by-同舟云学术

Oil and Food Price Before and During COVID-19 Pandemic in Nigeria: A Non-Linear ARDL Approach

Published:2024-04-25 Issue:2 Volume:34 Page:32-56
ISSN:2285-3065
Container-title:Studia Universitatis „Vasile Goldis” Arad – Economics Series
language:en
Short-container-title:

Author:

Yusuf Muhammad-Bashir Owolabi¹,Salau Tunde Jibril¹,Adeiza Adams²

Affiliation:

1. Al-Hikmah University , Ilorin , Nigeria

2. Malaysian Graduate School of Entrepreneurship and Business Universiti Malaysia Kelantan (UMK) , Malaysia

Abstract

Abstract This paper analyzes the relationship between food and oil prices in Nigeria before and during the COVID-19 pandemic, using monthly data from January 2018 to December 2021. The ARDL and NARDL models are applied to estimate the symmetry and asymmetric relationship that exists in food price behavior. The NARDL confirms the presence of asymmetries, and the bound test affirms the co-integration and long-run relationship among the variables. In the long run, there is a significant positive relation between oil price increases and food prices, but the long-run impact of oil price reductions on food prices is not significant. In the short run, only increases in oil prices exert a significant influence on food prices, while decreases in oil prices do not. Furthermore, the COVID-19 period exerts a positive and significant impact on food prices, while COVID-19 cases do not influence food prices in Nigeria.

Publisher

Walter de Gruyter GmbH

Link

https://www.sciendo.com/pdf/10.2478/sues-2024-0007

Reference38 articles.

1. Abbott, P.C., Christopher, H., Wallace, E.T. (2008), What’s Driving Food Prices? Issue Reports, No. 37951. Oak Brook: Farm Foundation.

2. Abbott, P.C., Christopher, H., Wallace, E.T. (2009), What’s Driving Food Prices? March 2009 Update, Issue Reports, No. 48495, Oak Brook: Farm Foundation

3. Abdlaziz, R. A., Rahim, K. A., Adamu, P. (2016), Oil and food prices co-integration nexus for Indonesia: A non-linear autoregressive distributed lag analysis, International Journal of Energy Economics and Policy, 6(1), 82–87.

4. Aleksandrova, S., (2016), Impact of oil price on oil exporting countries in the Caucasus and Central Asia, Economic Alternative, 4, 477–486.

5. Alghalith, M., (2010), The interaction between food prices and oil prices, Energy Economics, 32, 1520–1522.