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Boosting the Fertilizer Production in Kenya: a CGE analysis

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Abstract

Food security remains a key challenge in many Sub-Saharan African countries and in Kenya in particular. Kenya addresses this concern with a noteworthy policy mix, aiming at giving to the agricultural sector a leading task in improving food security. In this paper, through a Computable General Equilibrium (CGE) model specifically modified for the context of developing country analyses, we address the impacts of the construction of a new fertilizer plant on the agricultural sector and the rest of the economy. For the purpose of the study, a desegregated version of a 2014 Social Accounting Matrix (SAM) has been developed. Results suggests that increasing domestic production of fertilizers do not fully achieve the objectives of reducing rural poverty and increasing agricultural production without complementary policies that help small-holder farmers to overcome the backward technology trap and give them better access to input and output markets.

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  • Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & Mainar Causape Alfredo & Ilaria Proietti, 2017. "Boosting the Fertilizer Production in Kenya: a CGE analysis," JRC Research Reports JRC104685, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc104685
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    1. Mauro Vigani & Hasan Dudu & Emanuele Ferrari & Alfredo Mainar Causape, 2019. "Estimation of food demand parameters in Kenya. A Quadratic Almost Ideal Demand System (QUAIDS) approach," JRC Research Reports JRC115472, Joint Research Centre.
    2. Maria Priscila Ramos & Estefania Custodio & Sofia Jimenez & Alfredo Mainar Causape & Pierre Boulanger & Emanuele Ferrari, 2020. "Assessing market incentive policies in Kenya with a food security and nutrition perspective: a macro-microsimulation approach," JRC Research Reports JRC119390, Joint Research Centre.

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania

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