An Analysis of Price Setting Behaviour in the Economic Community of West African States

Research Note
Published on 12 April 2023


This project has two basic objectives. First, we analyse the stylised facts that characterise price setting behaviour in the Economic Community of West African States (ECOWAS). Second, we examine the extent of product market integration within the West African sub-region using the ‘law of one price’. Our dataset consists of disaggregated micro-level retail price data underlying the computation of National Consumer Price Index in three sample countries - Nigeria, Togo and Benin, collected monthly for five years from January 2011 to December 2015. Our findings for price setting behaviour show that, across the three countries, price volatility is higher in Nigeria than Togo and Benin. Our results for product market integration show that relative price divergence is lower within-country than between-country. This supports the hypothesis that product market integration in ECOWAS is weak.


Taiwo Owoeye

Ekiti State University

Olufemi Ajiboye

Ekiti State University