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Rivers State University, Port Harcourt.
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| Title: | Analysis Of Food Inflationary Effect On Nigerian Household Consumption Expenditure 1995-2021 |
| Author(s): | Okuduwor,A. A., Morris, R.E. & Agholor, D.C. |
| Abstract: | This study investigated food inflationary effect on Nigerian household consumption expenditure from 1995-2021. The specific objectives of the study were to determine the effect of food inflation on household consumption expenditure in Nigeria, determine the effect of money supply on household consumption expenditure in Nigeria, determine the effect of consumer food price index on household consumption expenditure in Nigeria. The method employed for analyzing the time series data was the Auto Regressive Distributed Lag (ARDL) model. Unit root test showed that all the variables were stationary at level I (0) and first difference I (1). The Cointegration test shows that the variables cointegrated in the long run. Post estimation test showed that the models were free of serial correlation and heteroscedasticity. The stability tests, (CUSUM) plots showed that the regression estimates were stable overtime. The first, second and third lags of food inflation (FINF) showed a negative significant relationship with HCEXP while the current year have a positive significant relationship, that is to say a naira increase in food inflation in the first, second and third lags led to ?40378.07, ?21164.09, ?24350.34 billion decrease in household consumption expenditures. The study concluded that food inflation reduces household consumption expenditure and recommended that there should be policies in place that will favour household consumption as consumption is an inflow into the economy to stimulate productivity, create an enabling environment for more investments in food production to reduce production costs and grow larger economies of scale. |
| Keywords: | Household, Consumption Expenditure, Food Inflation, Money Supply, Consumer Food Price Index |
| Journal: | Economic and Social Science Review (ESR) |
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