The Impact of the General Price Level on Rice Production in Abia State, Nigeria

This work examined effect of the general price level on rice production in Abia State. The work employed time series data from 1980 to 2023, and used autoregressive distributed lag (ARDL) bounds test for co-integration and error correction model. The finding revealed that inflation rate has a positive but insignificant effect on rice production. Lag one period inflation rate did positively and significantly affect rice production, while lag two period inflation rate was negative but significant, too. The study concluded with recommendation that policymakers should identify the optimal inflation threshold in order to maximize rice production. The study also recommended the implementation of price stabilization policies, investment in agriculture, and building of capacity for farmers. These will increase rice production, improve food security, and the livelihood of farmers in Abia State, Nigeria.