IDEAS home Printed from https://ideas.repec.org/a/trp/01jefa/jefa0039.html
   My bibliography  Save this article

Drivers of Horticultural Exports in Kenya

Author

Listed:
  • Silas Kiprono SAMOEI
  • Edwin Kipyego KIPCHOGE

    (Moi University
    University of Eldoret)

Abstract

This study examines major drivers behind horticultural exports in Kenya for the period 2005-2017. Using co-integration model, the study finds out horticultural exports, interest rate, exchange rate, and inflation rate are co-integrated in long-run. These co-integrated series converge to their long-run equilibrium at a speed of 8.53% on each period at 1% statistically significance level. More specifically, the study explores that the interest rate has negative influence on horticultural exports of Kenya, while inflation and exchange rates have positive impact. Thus, the study recommends that the government in Kenya should reduce interest rates using their monetary policies and stabilize macroeconomic environment in order to increase horticultural exports such as targeted exchange rate through application of foreign reserves adjustments.

Suggested Citation

  • Silas Kiprono SAMOEI & Edwin Kipyego KIPCHOGE, 2020. "Drivers of Horticultural Exports in Kenya," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 4(2), pages 27-44.
    • Handle: RePEc:trp:01jefa:jefa0039
    DOI: 10.1991/jefa.v4i2.a35
    as

    Download full text from publisher

    File URL: http://ojs.tripaledu.com/index.php/jefa/article/download/56/68
    Download Restriction: no
    File URL: https://libkey.io/10.1991/jefa.v4i2.a35?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gylfason, Thorvaldur & Herbertsson, Tryggvi Thor, 2001. "Does inflation matter for growth?," Japan and the World Economy, Elsevier, vol. 13(4), pages 405-428, December.
    2. A. Asongu, Simplice & E. Folarin, Oludele & Biekpe, Nicholas, 2020. "The Long-Run Stability of Money in the ProposedE ast AfricanMonetary Union," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 35(3), pages 457-478.
    3. Jan Willem Gunning & Paul Collier, 1999. "Explaining African Economic Performance," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 64-111, March.
    4. World Bank & International Finance Corporation, 2013. "Doing Business 2014 : Understanding Regulations for Small and Medium-Size Enterprises," World Bank Publications - Books, The World Bank Group, number 16204, December.
    5. Tschirley, David L. & Muendo, Kavoi Mutuku & Weber, Michael T., 2004. "Improving Kenya's Domestic Horticultural Production and Marketing System: Current Competitiveness, Forces of Change, and Challenges for the Future Volume II: Horticultural Marketing," Working Papers 202671, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    6. Adeleke Oluwole Salami & Abdul Kamara & Zuzana Brixiova, 2010. "Working Paper 105 - Smallholder Agriculture in East Africa: Trends, Constraints and Opportunities," Working Paper Series 242, African Development Bank.
    7. Muendo, Kavoi Mutuku & Tschirley, David L., 2004. "Improving Kenya's Domestic Horticultural Production and Marketing System: Current Competitiveness, Forces of Change, and Challenges for the Future (Volume I: Horticultural Production)," Food Security Collaborative Working Papers 55155, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Qunyong Wang & Na Wu, 2012. "Long-run covariance and its applications in cointegration regression," Stata Journal, StataCorp LP, vol. 12(3), pages 525-542, September.
    9. Cao, Kang Hua & Birchenall, Javier A., 2013. "Agricultural productivity, structural change, and economic growth in post-reform China," Journal of Development Economics, Elsevier, vol. 104(C), pages 165-180.
    10. MB Kaabia & JM Gil, 2000. "Short- and long-run effects of macroeconomic variables on the Spanish agricultural sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 27(4), pages 449-471, December.
    11. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & Alfredo Mainar Causape & Jean Balie & Lucia Battaglia, 2018. "Policy options to support the Agriculture Sector Growth and Transformation Strategy in Kenya: A CGE analysis," JRC Research Reports JRC111251, Joint Research Centre.
    12. Mabeta, Joshua, 2015. "Determinants of Non-Traditional Agricultural Exports Growth in Zambia: A Case of Cotton and Tobacco," Research Theses 243450, Collaborative Masters Program in Agricultural and Applied Economics.
    13. Wang, Kai-Li & Barrett, Christopher B., 2007. "Estimating the Effects of Exchange Rate Volatility on Export Volumes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(2), pages 1-31, August.
    14. International Finance Corporation & World Bank, 2013. "Doing Business 2013 : Smarter Regulations for Small and Medium-Size Enterprises [Regulaciones inteligentes para las pequeñas y medianas empresas : resumen ejecutivo (Vol. 2)]," World Bank Publications - Books, The World Bank Group, number 11857, December.
    15. Douglas Gollin & Stephen Parente & Richard Rogerson, 2002. "The Role of Agriculture in Development," American Economic Review, American Economic Association, vol. 92(2), pages 160-164, May.
    16. repec:wbk:wboper:13331 is not listed on IDEAS
    17. Abro, Zewdu Ayalew & Alemu, Bamlaku Alamirew & Hanjra, Munir A., 2014. "Policies for Agricultural Productivity Growth and Poverty Reduction in Rural Ethiopia," World Development, Elsevier, vol. 59(C), pages 461-474.
    18. Engle, Robert F. & Yoo, Byung Sam, 1987. "Forecasting and testing in co-integrated systems," Journal of Econometrics, Elsevier, vol. 35(1), pages 143-159, May.
    19. Muendo, Kavoi Mutuku & Tschirley, David L., 2004. "Improving Kenya's Domestic Horticultural Production and Marketing System: Current Competitiveness, Forces of Change, and Challenges for the Future Volume I: Horticultural Production," Working Papers 202672, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    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. Diao, Xinshen & McMillan, Margaret, 2018. "Toward an Understanding of Economic Growth in Africa: A Reinterpretation of the Lewis Model," World Development, Elsevier, vol. 109(C), pages 511-522.
    2. Tschirley, David L. & Ayieko, Miltone W. & Hichaambwa, Munguzwe & Goeb, Joey & Loescher, Wayne, 2010. "Modernizing Africa’s Fresh Produce Supply Chains without Rapid Supermarket Takeover: Towards a Definition of Research and Investment Priorities," Food Security International Development Working Papers 93030, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Tschirley, David L. & Ayieko, Miltone W., 2008. "Assessment of Kenya's Domestic Horticultural Production and Marketing Systems and Lessons for the Future," Food Security Collaborative Working Papers 55431, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Jeptoo, Agnes & Aguyoh, Joseph N & Saidi, Mwanarusi, 2013. "Improving Carrot Yield and Quality through the Use of Bio-slurry Manure," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 2(1).
    5. Jalang'o, Dorcas Anyango, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Research Theses 276431, Collaborative Masters Program in Agricultural and Applied Economics.
    6. Tschirley, David L. & Hichaambwa, Munguzwe, 2010. "The Structure and Behavior of Vegetable Markets Serving Lusaka: Main Report," Food Security Collaborative Working Papers 93006, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Moranga, Lawrence Ongwae & Otieno, David Jakinda & Oluoch-Kosura, Willis, 2016. "Analysis Of Factors Influencing Tomato Farmers’ Willingness To Adopt Innovative Timing Approaches For Management Of Climate Change Effects In Taita Taveta County, Kenya," Dissertations and Theses 269270, University of Nairobi, Department of Agricultural Economics.
    8. Kibet, N. & Obare, G.A. & Lagat, J.K, 2018. "Risk attitude effects on Global-GAP certification decisions by smallholder French bean farmers in Kenya," Journal of Behavioral and Experimental Finance, Elsevier, vol. 18(C), pages 18-29.
    9. Muthini, Davis Nguthi, 2015. "An assessment of mango famer's choice of marketing channels in Makueni, Kenya," Research Theses 204866, Collaborative Masters Program in Agricultural and Applied Economics.
    10. Hichaambwa, Munguzwe & Tschirley, David L., 2006. "Zambia Horticultural Rapid Appraisal: Understanding the Domestic Value Chains of Fresh Fruits and Vegetables," Food Security Collaborative Working Papers 54476, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Jalang’o, Dorcas Anyango & Otieno, David Jakinda & Oluoch-Kosura, Willis, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Dissertations and Theses 269269, University of Nairobi, Department of Agricultural Economics.
    12. Winter-Nelson, Alex & Argwings-Kodhek, Gem, 2007. "Distortions to Agricultural Incentives in Kenya," Agricultural Distortions Working Paper Series 48521, World Bank.
    13. Onumah, Gideon & Davis, Junior & Kleih, Ulrich & Proctor, Felicity, 2007. "Empowering Smallholder Farmers in Markets: Changing agricultural marketing systems and innovative responses by producer organizations," MPRA Paper 25984, University Library of Munich, Germany.
    14. Tasso Adamopoulos & Loren Brandt & Chaoran Chen & Diego Restuccia & Xiaoyun Wei, 2022. "Land Security and Mobility Frictions," Working Papers tecipa-717, University of Toronto, Department of Economics.
    15. Muriithi, Beatrice W. & Matz, Julia Anna, 2015. "Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya," Food Policy, Elsevier, vol. 50(C), pages 80-91.
    16. Diao, Xinshen & Hazell, Peter & Resnick, Danielle & Thurlow, James, 2006. "The role of agriculture in development: implications for Sub-Saharan Africa," DSGD discussion papers 29, International Food Policy Research Institute (IFPRI).
    17. Hoeffler, Heike, 2006. "Promoting the Kenyan Potato Value Chain: Can Contract Farming Help Build Trust and Reduce Transaction Risks?," 99th Seminar, February 8-10, 2006, Bonn, Germany 7726, European Association of Agricultural Economists.
    18. Schulz, Matthias & Urbig, Diemo & Procher, Vivien, 2016. "Hybrid entrepreneurship and public policy: The case of firm entry deregulation," Journal of Business Venturing, Elsevier, vol. 31(3), pages 272-286.
    19. Chong Kyoon Lee & Griffin W. Cottle & Sharon A. Simmons & Johan Wiklund, 2021. "Fear not, want not: Untangling the effects of social cost of failure on high-growth entrepreneurship," Small Business Economics, Springer, vol. 57(1), pages 531-553, June.
    20. Giorgio Calcagnini & Ilario Favaretto, 2016. "Models of university technology transfer: analyses and policies," The Journal of Technology Transfer, Springer, vol. 41(4), pages 655-660, August.

    More about this item

    Keywords

    Horticultural Exports; Co-integration; Error Correction Model.;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F00 - International Economics - - General - - - General

    Statistics

    Access and download statistics

    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:trp:01jefa:jefa0039. 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: David Simon Hall (email available below). General contact details of provider: .

    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.