Spatial Integration Between Markets of Cowpea (vigna Unguiculata) in Adamawa and Taraba States, Nigeria

The study was conducted to assess spatial integration between markets of cowpea in Adamawa and Taraba States, Nigeria. The sources of data for the study were secondary data which were collected from the Agricultural Development Project and State Planning Commission of Adamawa and Taraba States for a period of 5 years (2013- 2017). Multistage and Purposive sampling techniques were used for selection of the study area. Inferential statistics such as Dicky Fuller Test, Johansen Co-Integration Model, Granger Causality Test, Error Correction Model were used as analytical tools. The unit root test analysis revealed almost all the markets price series were non-stationary at level, except Jambutu market (AD5) at 5% significant level, but became stationary after first difference. The result of Granger Causality revealed that the X2 is 4.8787 and 0.3912 and probability values of 0.087 and 0.822 for Adamawa and Taraba States markets, respectively, which indicated that Adamawa State cowpea market is the leading market over Taraba State cowpea market at 10% level of significance. The analysis of Vector error correction model indicated that that, Adamawa State cowpea price adjusted faster than that of Taraba State with the estimated adjustment coefficients of 0.2799 and 0.0089 and P values of 0.005 and 0.779 for Adamawa and Taraba States markets’ price equations and confirmed the existence of the short run and long-run market integration between the market pairs at 5% level of significant. The study concluded that there is co-integration between Adamawa State cowpea markets and Taraba State cowpea markets but the co-integration is low and therefore, recommended that marketers should form cooperatives or associations that can assist them in the provision of physical facilities and better dissemination of market intelligence and information among them so as to help increase market integration level through increased speed of price transmission.