ABSTRACT:

This study was carried out to determine the market supply response of imported frozen sardinella in Cross River State, Nigeria. Secondary data used for the study were obtained from the records of the five wholesale companies in Cross River state. Cointegration and error correction models were used in analyzing market supply response. The following results were obtained; the short-run and long-run own price elasticity were 2.062 and 1.257 which were significant at the 5 percent and 1 percent levels respectively. The error correction coefficient Ect(-1) was - 1.536 which was significant at the 5 percent level. The own price long-run elasticity estimates were in accordance with a priori expectations. Adjustment from short-run towards long-run equilibrium was achieved instantaneously. Consequently, short-run elasticity estimates were found to be larger than those of the long-run. This study recommends the provision good distribution network to avert distortions in supply.