Modeling the Effects of Input Market Reforms on Fertilizer Demand and Maize Production: A Case Study of Kenya
Kenya is one of the few countries in sub-Saharan Africa experiencing an impressive rise in fertilizer use on food crops grown by smallholder farmers since the liberalization of input markets starting in the early-1990s. The impacts of these reforms and associated private sector investments on national fertilizer use and food production have never been rigorously quantified, though doing so could shed new light on policy makers’ options for raising food crop productivity in the region. This study estimates a double-hurdle model of fertilizer demand that controls for common forms of unobserved heterogeneity then simulates the effect of changes in fertilizer prices and distances from farm to the nearest fertilizer retailer associated with fertilizer market liberalization on the demand for fertilizer and the production of maize, the major staple crop in the country. The study concludes that over the period 1997-2010 the reduction in real fertilizer prices associated with input market liberalization is estimated to have raised maize yields by 15 to 100 kg/ha, depending on the province and year. Low average physical response rates of maize to fertilizer application in high fertilizer consuming areas of Kenya limits the degree to which increased fertilizer use via liberalization policies translates into food production improvements. These increases in maize yield specifically linked to changes in fertilizer prices accounted for between 1 and 11 percent of changes in maize production between survey years.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mather, David & Jayne, Thomas S., 2011.
"The Impact of State Marketing Board Operations on Smallholder Behavior and Incomes: The Case of Kenya,"
Food Security International Development Working Papers
120742, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Mather, David & Jayne, Thomas S., 2012. "The Impact of State Marketing Board Operations on Smallholder Behavior and Incomes: The Case of Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 131056, International Association of Agricultural Economists.
- Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
- Omamo, Steven Were & Mose, Lawrence O., 2001. "Fertilizer trade under market liberalization: preliminary evidence from Kenya," Food Policy, Elsevier, vol. 26(1), pages 1-10, February.
- Jayne, T. S. & Govereh, J. & Wanzala, M. & Demeke, M., 2003. "Fertilizer market development: a comparative analysis of Ethiopia, Kenya, and Zambia," Food Policy, Elsevier, vol. 28(4), pages 293-316, August.
- Ariga, Joshua & Jayne, Thomas S., 2009. "Private sector responses to public investments and policy reforms: The case of fertilizer and maize market development in Kenya," IFPRI discussion papers 921, International Food Policy Research Institute (IFPRI).
- William J. Burke, 2009. "Fitting and interpreting Cragg's tobit alternative using Stata," Stata Journal, StataCorp LP, vol. 9(4), pages 584-592, December.
- Andre Croppenstedt & Mulat Demeke & Meloria M. Meschi, 2003. "Technology Adoption in the Presence of Constraints: the Case of Fertilizer Demand in Ethiopia," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 58-70, February.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- Jayne, Thomas S. & Muyanga, Milu, 2012. "Land Constraints in Kenya’s Densely Populated Rural Areas: Implications for Food Policy and Institutional Reform," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134723, Agricultural Economics Society.
- Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September.
- Jayne, T. S. & Argwings-Kodhek, Gem, 1997. "Consumer response to maize market liberalization in urban Kenya," Food Policy, Elsevier, vol. 22(5), pages 447-458, October.
- Jacob Ricker-Gilbert & Thomas S. Jayne & Ephraim Chirwa, 2010. "Subsidies and Crowding Out: A Double-Hurdle Model of Fertilizer Demand in Malawi," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 26-42.
- Coady, David P, 1995. "An Empirical Analysis of Fertilizer Use in Pakistan," Economica, London School of Economics and Political Science, vol. 62(246), pages 213-34, May.
- Freeman, H. Ade & Kaguongo, Wachira, 2003. "Fertilizer market liberalization and private retail trade in Kenya," Food Policy, Elsevier, vol. 28(5-6), pages 505-518.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:150697. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.