IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v7y2017i3p99-116.html
   My bibliography  Save this article

Moderating Effect of Index Based Livestock Insurance on Socio-Cultural Factors Affecting Performance of Livestock Projects in North Eastern Kenya

Author

Listed:
  • Mohamed Keinan Hassan
  • Jane Gathenya
  • Mike Iravo

Abstract

Livestock keeping represent vast majority of household wealth and accounts for more than two-thirds of average family income in arid and semi-arid lands of Kenya. In the last decade, four severed droughts occurred in Northern Kenya resulting to major livestock mortality. Following to this, several projects were embarked to manage risk such as provision of microinsurance for low income people but not much has been achieved. Therefore, the purpose of this study was to investigate the moderating effect of index based livestock insurance on sociocultural factors affecting performance of livestock projects in North Eastern Kenya. The study used cross sectional design and targeted population from households in Garissa and Wajir. Structured questionnaire was administered to the sampled population which was randomly selected using multi-stage random sampling technique. Quantitative data collected was analyzed by statistical models such as Analysis of variance (ANOVA), Multivariate regression analysis was applied to measure moderating effect of index based livestock insurance on sociocultural factors. The study found out that there was a weak positive linear relationship between socio-cultural factors and performance of livestock projects in North Eastern Kenya using Pearson correlation coefficient.

Suggested Citation

  • Mohamed Keinan Hassan & Jane Gathenya & Mike Iravo, 2017. "Moderating Effect of Index Based Livestock Insurance on Socio-Cultural Factors Affecting Performance of Livestock Projects in North Eastern Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(3), pages 99-116, March.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:3:p:99-116
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Moderating_Effect_of_Index_Based_Livestock_Insurance_on_Socio-Cultural_Factors_Affecting_Performance_of_Livestock_Projects_in_North_Eastern_Kenya.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/Moderating_Effect_of_Index_Based_Livestock_Insurance_on_Socio-Cultural_Factors_Affecting_Performance_of_Livestock_Projects_in_North_Eastern_Kenya.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Awel Y. & Azomahou T.T., 2015. "Risk preference or financial literacy? Behavioural experiment on index insurance demand," MERIT Working Papers 2015-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Shawn Cole & Xavier Gine & Jeremy Tobacman & Petia Topalova & Robert Townsend & James Vickery, 2013. "Barriers to Household Risk Management: Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 104-135, January.
    3. Skees, Jerry R.*Enkh-Amgalan, Ayurzana, 2002. "Examining the feasibility of livestock insurance in Mongolia," Policy Research Working Paper Series 2886, The World Bank.
    4. Hans P. Binswanger-Mkhize, 2012. "Is There Too Much Hype about Index-based Agricultural Insurance?," Journal of Development Studies, Taylor & Francis Journals, vol. 48(2), pages 187-200, February.
    5. Jensen, Nathaniel D. & Barrett, Christopher B. & Mude, Andrew G., 2014. "Basis Risk and the Welfare Gains from Index Insurance: Evidence from Northern Kenya," MPRA Paper 59153, University Library of Munich, Germany.
    6. Mahmud Yesuf & Randall A. Bluffstone, 2009. "Poverty, Risk Aversion, and Path Dependence in Low-Income Countries: Experimental Evidence from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1022-1037.
    7. Barnett, Barry J. & Barrett, Christopher B. & Skees, Jerry R., 2008. "Poverty Traps and Index-Based Risk Transfer Products," World Development, Elsevier, vol. 36(10), pages 1766-1785, October.
    8. Bruce J. Sherrick & Gary D. Schnitkey & Paul N. Ellinger & Peter J. Barry & Brian Wansink, 2003. "Farmers' Preferences for Crop Insurance Attributes," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 415-429.
    9. Peter D. Little, 2005. "Unofficial Trade When States Are Weak: the Case of Cross-Border Commerce in the Horn of Africa," WIDER Working Paper Series RP2005-13, World Institute for Development Economic Research (UNU-WIDER).
    10. Tekabe Belay & Ajay Tandon, 2015. "Assessing Fiscal Space for Health in Nepal," Health, Nutrition and Population (HNP) Discussion Paper Series 68260, The World Bank.
    11. Barry J. Barnett & Olivier Mahul, 2007. "Weather Index Insurance for Agriculture and Rural Areas in Lower-Income Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1241-1247.
    12. Sommarat Chantarat & Andrew G. Mude & Christopher B. Barrett & Michael R. Carter, 2013. "Designing Index-Based Livestock Insurance for Managing Asset Risk in Northern Kenya," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 80(1), pages 205-237, March.
    13. Arun, Thankom & Bendig, Mirko & Arun, Shoba, 2012. "Bequest Motives and Determinants of Micro Life Insurance in Sri Lanka," World Development, Elsevier, vol. 40(8), pages 1700-1711.
    14. Mario J. Miranda & Katie Farrin, 2012. "Index Insurance for Developing Countries," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(3), pages 391-427.
    15. Platteau, Jean-Philippe & De Bock, Ombeline & Gelade, Wouter, 2017. "The Demand for Microinsurance: A Literature Review," World Development, Elsevier, vol. 94(C), pages 139-156.
    16. Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
    17. John G. McPeak & Christopher B. Barrett, 2001. "Differential Risk Exposure and Stochastic Poverty Traps Among East African Pastoralists," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 674-679.
    18. John McPeak, 2004. "Contrasting income shocks with asset shocks: livestock sales in northern Kenya," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 263-284, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jensen, Nathaniel D. & Mude, Andrew G. & Barrett, Christopher B., 2018. "How basis risk and spatiotemporal adverse selection influence demand for index insurance: Evidence from northern Kenya," Food Policy, Elsevier, vol. 74(C), pages 172-198.
    2. Quentin Stoeffler & Michael Carter & Catherine Guirkinger & Wouter Gelade, 2022. "The Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso," The World Bank Economic Review, World Bank, vol. 36(1), pages 114-140.
    3. Takahashi, Kazushi & Ikegami, Munenobu & Sheahan, Megan & Barrett, Christopher B., 2014. "Quasi-experimental evidence on the drivers of index-based livestock insurance demand in Southern Ethiopia," IDE Discussion Papers 480, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Chantarat, Sommarat & Mude, Andrew G. & Barrett, Christopher B. & Turvey, Calum G., 2017. "Welfare Impacts of Index Insurance in the Presence of a Poverty Trap," World Development, Elsevier, vol. 94(C), pages 119-138.
    5. Chantarat, Sommarat & Mude, Andrew G. & Barrett, Christopher B. & Turvey, Calum G., 2017. "Welfare Impacts of Index Insurance in the Presence of a Poverty Trap," World Development, Elsevier, vol. 94(C), pages 119-138.
    6. Michael King & Anuj Pratab Singh, 2018. "Understanding farmers' valuation of agricultural insurance: Evidence from Vietnam," WIDER Working Paper Series wp-2018-93, World Institute for Development Economic Research (UNU-WIDER).
    7. Nathaniel Jensen & Christopher Barrett, 2017. "Agricultural Index Insurance for Development," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(2), pages 199-219.
    8. Mogge, Lukas, 2023. "A District-Level Analysis of the Effect of Risk Exposure on the Demand for Index Insurance in Mongolia," Ruhr Economic Papers 1018, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Takahashi, Kazushi & Ikegami, Munenobu & Sheahan, Megan & Barrett, Christopher B., 2016. "Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia," World Development, Elsevier, vol. 78(C), pages 324-340.
    10. Anuj Singh & Michael King, 2018. "Understanding farmers’ valuation of agricultural insurance: Evidence from Vietnam," WIDER Working Paper Series 93, World Institute for Development Economic Research (UNU-WIDER).
    11. Aina, I. & Ayinde, O.E. & Thiam, D. & Miranda, M., 2018. "Willingness to Pay for Index-Based Livestock Insurance: Perspectives from West Africa," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277383, International Association of Agricultural Economists.
    12. Joshua Munkombwe & Jackson Phiri & Enock Siankwilimba, 2022. "Financial Innovation among Smallholder Farmers: Enhancing the uptake of Weather Index Insurance through a Pragmatic Approach," Journal of Social Sciences Advancement, Science Impact Publishers, vol. 3(1), pages 01-19.
    13. Antoine Leblois & Philippe Quirion & Benjamin Sultan, 2013. "Price vs. weather shock hedging for cash crops: ex ante evaluation for cotton producers in Cameroon," Working Papers hal-00796528, HAL.
    14. Veronika Bertram-Huemmer & Kati Kraehnert, 2018. "Does Index Insurance Help Households Recover from Disaster? Evidence from IBLI Mongolia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 145-171.
    15. Stoeffler, Quentin & Opuz, Gülce, 2022. "Price, information and product quality: Explaining index insurance demand in Burkina Faso," Food Policy, Elsevier, vol. 108(C).
    16. Sarah A. Janzen & Michael R. Carter & Munenobu Ikegami, 2021. "Can insurance alter poverty dynamics and reduce the cost of social protection in developing countries?," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(2), pages 293-324, June.
    17. Ward, Patrick S. & Kumar, Neha & De Nicola, Francesca & Hill, Ruth & Makhija, Simrin & Spielman, David J. & Magnan, Nicholas, 2017. "Insuring Against Drought: Evidence on Agricultural Intensification and Demand for Index Insurance from a Randomized Evaluation in Rural Bangladesh," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258090, Agricultural and Applied Economics Association.
    18. Hill, Ruth Vargas & Kumar, Neha & Magnan, Nicholas & Makhija, Simrin & de Nicola, Francesca & Spielman, David J. & Ward, Patrick S., 2019. "Ex ante and ex post effects of hybrid index insurance in Bangladesh," Journal of Development Economics, Elsevier, vol. 136(C), pages 1-17.
    19. Million Tadesse & Bekele Shiferaw & Olaf Erenstein, 2015. "Weather index insurance for managing drought risk in smallholder agriculture: lessons and policy implications for sub-Saharan Africa," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-21, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijarbs:v:7:y:2017:i:3:p:99-116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.