Impact of Inflation and Government Agricultural Policies on Relative Price variability of Cash Crops in Nigeria Mesike,

The paper investigated the impact of inflation and government agricultural policies on relative price variability of cash crops in Nigeria using co-integration and ECM approach. The analysis was carried out on time series data collected from 1970 to 2008. The result shows that inflation has a significant positive impact on relative price variability in the short-run and long-run. Polices like Structural Adjustment Programme (SAP), Post-Structural Adjustment Programme (PSAP) and Green Revolution (GR) affected price changes that led to efficient re-allocation of resources among cash crops in Nigeria. It is therefore recommended that long-run government agricultural policies should therefore be continued and also, policies that would protect the agricultural sector from the impact of inflation in the short-run should be encouraged. [Report and Opinion 2010;2(5):8-13]. (ISSN:1553-9873).