Market integration and the impact of violence on trade networks: Evidence from Nigeria

Market integration is critical for food security in developing economies facing socio-political instability. Using weekly price data from ninety-seven Nigerian markets, this study investigates how violent conflict influences price dynamics between market pairs. Results reveal that frequent violent events have limited short-term effects on price transmission, and changes in conflict intensity do not significantly disrupt price adjustments. Markets with stronger trade connections demonstrate greater resilience by leveraging alternative trade routes. These findings highlight the role of market connectivity in maintaining trade efficiency, suggesting that policies that enhance market networks can strengthen resilience and improve food security.