IJSRP, Volume 3, Issue 8, August 2013 Edition [ISSN 2250-3153]
Agboje Ifeoma. Anestina, Komolafe Joseph. Oluwaseun, Alao Taiwo. Kafayat, Okoruwa Victor.Olusegun
Prices of grains in Nigeria are usually outrageous at certain periods over the years followed by rapid reversals. This study identifies the factors influencing the (rise and fall) deviation of maize prices from its market fundamental values and tested for the presence of bubbles in eight maize markets in the South-West, Nigeria. Ordinary Least Square and Residual Augmented Dickey Fuller were used to examine the influencing factors and test for the presence of bubbles respectively. Results indicate that Consumer Price Indexes and crude oil price were the major factors influencing maize market prices in the zone, while maize market price bubbles were detected in Lagos Markets, Ogun, Osun and Oyo States Urban Markets.