The Influence of Transportation on Prices of Consumable Commodities (a Case Study of Selected Commodities Market in Benin City Edo State)
CHAPTER ONE
OBJECTIVE OF THE STUDY
The objective of t his study is to analyzed the effects of transportation on relative prices of some selected products in Oredo L.G.A. of Edo State.
This study will also highlight on the relationship between transportation and the price of consumables products in this local government area.
Also, this study will also try to show the effects of this high prices on those that are involved in consuming the gods (the consumer).
Finally, to highlight and suggest solution or remedy to combat such price increase.
CHAPTER TWO
LITERATURE REVIEW
CONCEPTUAL REVIEW
Transportation according to Anderson (1980) is seen as the process of conveying goods, services and passengers from one place to another. Since places are different both in structure and mineral composition, what is produced in one area may not be available in another place, hence the need
for transportation. With the help of transportation, goods and services are made available where they are needed. Furthermore, people do not stay in a particular area throughout their life time. Therefore, transportation helps in conveying passengers from one locality to another for many purposes. Transport can come in different form such as animal
transportation, oceanic transportation, land transportation etc (Ajibodye, &Afolaya, 2009).
In the views of Odedoku, Odokogo and Ogoji (2002), transportation is seen as a means of moving goods from their places of production to their places of consumption. For them, improvement in transportation accounts largely for the improved inter-relationship and inter- dependence between the people in the country.
According to Ogwude (2011) as cited in Chris and Tumba (2019), transport is one of the social overhead capitals which must be given critical attention in order to facilitate investments in the other sectors. From its central point of view of the economy, transport infrastructure constitutes a major segment of the economy, while from the distributional point of view it contributes to providing consumers with necessities of life at given prices. Following the inevitability of transportation of commodities to consumers, transportation constitutes the main avenue through which different parts of the society are linked together to ensure effectiveness and efficiency in production, distribution and consumption of consumables with the view that good transport linkages reduce transport costs, road congestion and increase consumer welfare throughout the country (Ashipala & Haimbodi, 2003; Aderamo and Magaji (2010).
Price, according to Olowo and Onoja (2004), is seen as the money or value for which a product is exchanged. Schindler (2012) further identified that price is the (usually not negative) quantity of payment or compensation given by one party to another in return for one unit of goods or services. A price is influenced by both production cost, which can include transportation cost as well as the demand
for the product. Over the years, high transport cost has become one of the most intractable problems of the modernday business. Nigeria as a nation is characterized by high cost of transportation more especially in Benin City, Edo State (Okuneye, 2002; Ifedi, 2020; Ugbodaga; 2020).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of Ninty-five (95) questionnaires were administered to respondents of which 80 were returned. The analysis of this study is based on the number returned.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS:
Introduction
This chapter summarizes the findings on the influence of transportation on prices of consumable commodities a case study of selected commodities market in Benin city Edo state. The chapter consists of summary of the study, conclusions, and recommendations.
Summary of the Study
In this study, our focus was on the influence of transportation on prices of consumable commodities a case study of selected commodities market in Benin city Edo state. The objective of this study is to analyzed the effects of transportation on relative prices of some selected products in Oredo L.G.A. of Edo State.
This study also highlighted on the relationship between transportation and the price of consumables products in this local government area.
Also, this study also tried to show the effects of this high prices on those that are involved in consuming the gods (the consumer).
Finally, to highlight and suggest solution or remedy to combat such price increase.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 80 responses were validated from the enrolled participants where all respondent in commodity markets in Edo State.
Conclusion
The study investigated causes and effect of transportation cost on the prices of consumable commodities in Benin City, Edo State. Based on the findings, it was admitted that high transportation cost impact on the prices of commodities in the markets because the mean response of the respondents agreed to that. It has also been proven that when illegal collections of money by high way patrol team in the state is not checkmated, there is tendency that cost of transportation will go up and that will eventually affect the prices of consumable commodities in Benin City, Edo State as it will continue to rise. likewise, bad roads which causes wears and tears on the vehicle and high fuel price contributes to the high cost of transportation which eventually affects the prices of consumable commodities in the State. Moreover, when there is price control for transporting certain consumable commodities especially via the government owned mass transit, this can reasonably stabilize the price of such products so as to curtail general rise in price level on consumables in the state.
Recommendations
Based on the findings, some policy recommendations are necessary to ameliorate the impact of transportation cost on the prices of consumable commodities in Benin City, Edo State of Nigeria. These include:
- Maximum reduction in the fares of mass transit: There should be a maximum reduction in fares of mass transits for goods and passengers in Benin City, Edo State as it will help to curtail price increase of consumable commodities in State.
- Elimination of Illegal Collection of Money: Illegal collections of money from motorists on the high way by the patrol team in Benin City, Edo State should be curtailed or eliminated.
- Maintenance of Major Roads: The Benin City, Edo State Governments should endeavour to maintain their major high ways and other feeder roads to reduce wear and tear on transportation vehicles and therefore reduce the burden on transportation costs.
- Investment on Transport: Both private, cooperate bodies and public sectors are advised to invest on transport, as this will create abundance and eventually reduce transport fares, verse versa prices of consumable commodities in Benin City, Edo State.
- Reduction in the Prices of Fuel: In the macro level, the Nigerian government can also reduce the price of fuel so as to reduce significantly its impacts on the prices of consumable commodities in all the States in Nigeria particularly in Benin City, Edo State.
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