Pub Date : 2023-06-30DOI: 10.53936/afjare.2023.18(1).3
Eric Chikwalila, M. Willinger, S. Farolfi, E. Mungatana, D. Jourdain
This study uses an online laboratory experiment and a post-experimental survey to test whether the Mastercard Foundation (MCF) scholarship programme causally influences the creation of cognitive social capital among University of Pretoria recipients. Cognitive social capital, which is based on commonly shared norms among subjects, leads to honest and cooperative behaviour. It is necessary for ease of information flow, a reduction in transaction costs, and allowing communities to deal with social dilemmas like common-pool resource management. The study used incentivised economic experiments on randomly selected subjects drawn from a control group (non-MCF students) and a treated group (MCF students). The experimental results from the two groups were compared to check the differences in terms of levels of trust, reciprocity, altruism, cooperation, in-group favouritism and out-group discrimination. Our results show that the scholarship programme has a significant impact only on levels of in-group favouritism and out-group discrimination. The post-experimental survey showed that MCF and non-MCF subjects were similar in terms of stated pro-social behaviour perceptions and in-group social capital creation.
{"title":"The impact of a scholarship programme on social capital formation among university students: An economic experiment at the University of Pretoria, South Africa","authors":"Eric Chikwalila, M. Willinger, S. Farolfi, E. Mungatana, D. Jourdain","doi":"10.53936/afjare.2023.18(1).3","DOIUrl":"https://doi.org/10.53936/afjare.2023.18(1).3","url":null,"abstract":"This study uses an online laboratory experiment and a post-experimental survey to test whether the Mastercard Foundation (MCF) scholarship programme causally influences the creation of cognitive social capital among University of Pretoria recipients. Cognitive social capital, which is based on commonly shared norms among subjects, leads to honest and cooperative behaviour. It is necessary for ease of information flow, a reduction in transaction costs, and allowing communities to deal with social dilemmas like common-pool resource management. The study used incentivised economic experiments on randomly selected subjects drawn from a control group (non-MCF students) and a treated group (MCF students). The experimental results from the two groups were compared to check the differences in terms of levels of trust, reciprocity, altruism, cooperation, in-group favouritism and out-group discrimination. Our results show that the scholarship programme has a significant impact only on levels of in-group favouritism and out-group discrimination. The post-experimental survey showed that MCF and non-MCF subjects were similar in terms of stated pro-social behaviour perceptions and in-group social capital creation.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42760805","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-30DOI: 10.53936/afjare.2023.18(1).1
Anthony Ojonimi Onoja
This study ascertained the influence of farmers’ perceptions of climate change effects and their household characteristics on the choice of adaptation technologies they adopt. The survey relied mainly on institutional and primary data for its analysis. Primary data was obtained from arable crop farmers using a set of structured questionnaires administered in a multi-stage, stratified random sampling manner. Sixty (60) farmers were selected from randomly selected states for the five agroclimatic zones in Nigeria, giving a total sample size of 300 farmers. The collected data was analysed using Heckman’s probit selectivity model. It was found that extension contact, gender of the head of household, temperature and rainfall levels determined the decision to adapt to climate change. The respective Z estimates of these aspects were 5.75 (p < 0.01), 5.30 (p < 0.01), 2.32 (p < 0.01) and -9.50 (p < 0.01). However, the farmers’ perceptions of climate change effects were determined by education and agricultural extension access. The Z values for these were 5.42 (p < 0.01) and 2.86 (p < 0.01) respectively. The researcher recommends urgent measures to help farmers adapt to climate change, such as the establishment of weather stations and building the capacities of farmers, especially women.
{"title":"Determinants of arable crop farmers’ decisions to adapt to climate change risks in Nigeria","authors":"Anthony Ojonimi Onoja","doi":"10.53936/afjare.2023.18(1).1","DOIUrl":"https://doi.org/10.53936/afjare.2023.18(1).1","url":null,"abstract":"This study ascertained the influence of farmers’ perceptions of climate change effects and their household characteristics on the choice of adaptation technologies they adopt. The survey relied mainly on institutional and primary data for its analysis. Primary data was obtained from arable crop farmers using a set of structured questionnaires administered in a multi-stage, stratified random sampling manner. Sixty (60) farmers were selected from randomly selected states for the five agroclimatic zones in Nigeria, giving a total sample size of 300 farmers. The collected data was analysed using Heckman’s probit selectivity model. It was found that extension contact, gender of the head of household, temperature and rainfall levels determined the decision to adapt to climate change. The respective Z estimates of these aspects were 5.75 (p < 0.01), 5.30 (p < 0.01), 2.32 (p < 0.01) and -9.50 (p < 0.01). However, the farmers’ perceptions of climate change effects were determined by education and agricultural extension access. The Z values for these were 5.42 (p < 0.01) and 2.86 (p < 0.01) respectively. The researcher recommends urgent measures to help farmers adapt to climate change, such as the establishment of weather stations and building the capacities of farmers, especially women.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43280434","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-30DOI: 10.53936/afjare.2023.18(1).5
Moses Ssebaggala, S. Karuaihe
Accessing water supply services remains a serious challenge in Wakiso District in Uganda, where most households travel long distances to collect water – a process that threatens their health, productivity and economic wellbeing. Although addressing this challenge requires huge financial investment, the value households attach to accessing private water supply services at their premises is not clear. This study used data from 243 households to determine their willingness to pay (WTP) for private water supply services. The analysis applied the Heckman model to check for sample selection bias, and the contingent valuation method (CVM) to estimate the WTP. The mean WTP was estimated at UGX 203.07 (USD 0.06) per 20 litre jerry can. Socioeconomic and demographic factors that influence WTP were also determined. These findings could guide the design of policies on sustainable water supply and cost recovery in the long run.
{"title":"Evaluating households’ willingness to pay for private water supply services in Wakiso District, Uganda","authors":"Moses Ssebaggala, S. Karuaihe","doi":"10.53936/afjare.2023.18(1).5","DOIUrl":"https://doi.org/10.53936/afjare.2023.18(1).5","url":null,"abstract":"Accessing water supply services remains a serious challenge in Wakiso District in Uganda, where most households travel long distances to collect water – a process that threatens their health, productivity and economic wellbeing. Although addressing this challenge requires huge financial investment, the value households attach to accessing private water supply services at their premises is not clear. This study used data from 243 households to determine their willingness to pay (WTP) for private water supply services. The analysis applied the Heckman model to check for sample selection bias, and the contingent valuation method (CVM) to estimate the WTP. The mean WTP was estimated at UGX 203.07 (USD 0.06) per 20 litre jerry can. Socioeconomic and demographic factors that influence WTP were also determined. These findings could guide the design of policies on sustainable water supply and cost recovery in the long run.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46038618","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-30DOI: 10.53936/afjare.2023.18(1).6
Sulinkhundla Maseko, S. Karuaihe, D. Jourdain
Evaluating the impact of agricultural practices helps policymakers and farmers in their decisionmaking. In Zambia, most households depend on agricultural activities, in particular maize production. This paper examines the impact of the adoption of residue retention on households’ maize yield in northern Zambia. We used the propensity score matching (PSM) method. By using the probit model, we also determined the factors that influence the adoption of residue retention. The results show that adopting residue retention has a positive and significant net effect on household maize yield. Residue retention traps moisture in the soil and improves soil structure. This suggests that a greater focus on this aspect is required to encourage more farmers to adopt residue retention to improve maize yield. Government policies can be structured to promote residue retention among smallholder farmers.
{"title":"Impact of the adoption of residue retention on household maize yield in northern Zambia","authors":"Sulinkhundla Maseko, S. Karuaihe, D. Jourdain","doi":"10.53936/afjare.2023.18(1).6","DOIUrl":"https://doi.org/10.53936/afjare.2023.18(1).6","url":null,"abstract":"Evaluating the impact of agricultural practices helps policymakers and farmers in their decisionmaking. In Zambia, most households depend on agricultural activities, in particular maize production. This paper examines the impact of the adoption of residue retention on households’ maize yield in northern Zambia. We used the propensity score matching (PSM) method. By using the probit model, we also determined the factors that influence the adoption of residue retention. The results show that adopting residue retention has a positive and significant net effect on household maize yield. Residue retention traps moisture in the soil and improves soil structure. This suggests that a greater focus on this aspect is required to encourage more farmers to adopt residue retention to improve maize yield. Government policies can be structured to promote residue retention among smallholder farmers.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44200021","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-30DOI: 10.53936/afjare.2023.18(1).4
J. Otieno, E. Muchapondwa, Herbert Ntuli
In this paper, we explore the role of wildlife in climate change adaptation, especially in areas used predominantly for livestock production in South Africa. Using a sample of 3 449 wildlife and livestock ranches, we estimate a multinomial choice model of various ranching options in these areas. The results indicate that mixed wildlife-livestock ranches are less vulnerable to climate change when compared to ranches with only wildlife or only livestock. However, given the ranching options, the revenues of ranches with only wildlife are higher compared to other ranches. The results further show that an increase in temperature will influence more livestock farmers, especially those farming with cattle, to change their land use from livestock to wildlife ranching. Using climate models, we establish that livestock farmers in the Eastern Cape province of South Africa will be affected most by climate change and will subsequently change their land use.
{"title":"The odds of South African agriculture using wildlife ranching to adapt to climate change","authors":"J. Otieno, E. Muchapondwa, Herbert Ntuli","doi":"10.53936/afjare.2023.18(1).4","DOIUrl":"https://doi.org/10.53936/afjare.2023.18(1).4","url":null,"abstract":"In this paper, we explore the role of wildlife in climate change adaptation, especially in areas used predominantly for livestock production in South Africa. Using a sample of 3 449 wildlife and livestock ranches, we estimate a multinomial choice model of various ranching options in these areas. The results indicate that mixed wildlife-livestock ranches are less vulnerable to climate change when compared to ranches with only wildlife or only livestock. However, given the ranching options, the revenues of ranches with only wildlife are higher compared to other ranches. The results further show that an increase in temperature will influence more livestock farmers, especially those farming with cattle, to change their land use from livestock to wildlife ranching. Using climate models, we establish that livestock farmers in the Eastern Cape province of South Africa will be affected most by climate change and will subsequently change their land use.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42999716","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-30DOI: 10.53936/afjare.2023.18(1).2
Peter Babyenda, Jane Kabubo-Mariara, Sule Odhiambo
Uganda’s climate is changing in terms of rising temperatures and altered precipitation patterns, leading to extreme meteorological conditions such as prolonged drought, floods and landslides. Yet the majority (68%) of Ugandans rely largely on rain-fed agriculture, which is affected by climate variability. This study therefore investigates the effect of climate variability on agricultural productivity in Uganda by combining long-term climate data, sourced from the United States National Oceanic and Atmospheric Administration (NOAA), and six waves of the Uganda National Panel Survey (UNPS) spanning the period 2009 to 2019. Trends and the regression analysis estimated with panel data confirm the existence of climate variability, as well as the vulnerability of farming households across Uganda. The empirical results indicate a significant U-shaped impact of precipitation variability on agricultural productivity. This tends to suggest that, as variability in precipitation intensifies, farming households will adapt to the changing precipitation and thereby improve their productivity. The regional and crop-specific analysis show that, relative to other regions of the country, Eastern Uganda is likely to be the region affected the most, while beans and banana are likely to be affected more by climate variability compared to other crops such as maize and cassava. The study thus recommends measures aimed at encouraging farmers to adapt and increase agricultural productivity. There is a need to strengthen the provision of extension services and inform farmers about climate variability
{"title":"Climate variability and agricultural productivity in Uganda","authors":"Peter Babyenda, Jane Kabubo-Mariara, Sule Odhiambo","doi":"10.53936/afjare.2023.18(1).2","DOIUrl":"https://doi.org/10.53936/afjare.2023.18(1).2","url":null,"abstract":"Uganda’s climate is changing in terms of rising temperatures and altered precipitation patterns, leading to extreme meteorological conditions such as prolonged drought, floods and landslides. Yet the majority (68%) of Ugandans rely largely on rain-fed agriculture, which is affected by climate variability. This study therefore investigates the effect of climate variability on agricultural productivity in Uganda by combining long-term climate data, sourced from the United States National Oceanic and Atmospheric Administration (NOAA), and six waves of the Uganda National Panel Survey (UNPS) spanning the period 2009 to 2019. Trends and the regression analysis estimated with panel data confirm the existence of climate variability, as well as the vulnerability of farming households across Uganda. The empirical results indicate a significant U-shaped impact of precipitation variability on agricultural productivity. This tends to suggest that, as variability in precipitation intensifies, farming households will adapt to the changing precipitation and thereby improve their productivity. The regional and crop-specific analysis show that, relative to other regions of the country, Eastern Uganda is likely to be the region affected the most, while beans and banana are likely to be affected more by climate variability compared to other crops such as maize and cassava. The study thus recommends measures aimed at encouraging farmers to adapt and increase agricultural productivity. There is a need to strengthen the provision of extension services and inform farmers about climate variability","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135922450","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-31DOI: 10.53936/afjare.2022.17(4).21
Wisdom Richard Mgomezulu, Kennedy Machira, A. Edriss, Innocent Pangapanga-Phiri, M. Chitete
This study aimed to bring forth empirical evidence of the effect of the sustained adoption of sustainable agricultural practices (SAPs) on the technical and profit efficiency of farmers. Previous studies remain inconclusive about whether the adoption of SAPs has any bearing on the efficiency of maize farmers. The current study introduced the concept of sustained adoption and compared levels of efficiency between one-time SAP adopters and sustained adopters. Using a sample of 2 100 households, the study employed the Cobb-Douglas stochastic frontier model to analyse both the technical and profit efficiency of maize farmers, and a two-stage tobit model was used to control for endogeneity. The study found that the one-time adoption of SAPs has no effect on the technical efficiency of maize farmers, whilst sustained adoption significantly improves the technical and profit efficiency of maize farmers. The study recommends a shift towards promoting the sustained adoption of SAPs for sustainable benefits for farmers.
{"title":"Responding to inefficiencies on smallholder maize farms: Can sustained adoption of sustainable agricultural practices make a difference?","authors":"Wisdom Richard Mgomezulu, Kennedy Machira, A. Edriss, Innocent Pangapanga-Phiri, M. Chitete","doi":"10.53936/afjare.2022.17(4).21","DOIUrl":"https://doi.org/10.53936/afjare.2022.17(4).21","url":null,"abstract":"This study aimed to bring forth empirical evidence of the effect of the sustained adoption of sustainable agricultural practices (SAPs) on the technical and profit efficiency of farmers. Previous studies remain inconclusive about whether the adoption of SAPs has any bearing on the efficiency of maize farmers. The current study introduced the concept of sustained adoption and compared levels of efficiency between one-time SAP adopters and sustained adopters. Using a sample of 2 100 households, the study employed the Cobb-Douglas stochastic frontier model to analyse both the technical and profit efficiency of maize farmers, and a two-stage tobit model was used to control for endogeneity. The study found that the one-time adoption of SAPs has no effect on the technical efficiency of maize farmers, whilst sustained adoption significantly improves the technical and profit efficiency of maize farmers. The study recommends a shift towards promoting the sustained adoption of SAPs for sustainable benefits for farmers.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42658776","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-31DOI: 10.53936/afjare.2022.17(4).24
Firomsa Mersha Tekalign, A. Mehare
This study seeks to identify the internal and external factors determining Ethiopia’s bilateral exports and total trade flows. It uses panel data covering 21 major trading partners of Ethiopia from 2000 to 2017 and estimates an augmented fixed effects gravity model. The results reveal that domestic and foreign revenues increase Ethiopia’s bilateral exports, whereas the country’s foreign direct investment and the population size of the trading partners decrease bilateral exports. The results further show that both the domestic and foreign income and similarity endowment of Ethiopia increase the country’s total trade. The study provides recommendations for the effective implementation of supply side policies to enhance trade.
{"title":"Determinants of bilateral trade flow between Ethiopia and its major trading partners: A gravity model approach","authors":"Firomsa Mersha Tekalign, A. Mehare","doi":"10.53936/afjare.2022.17(4).24","DOIUrl":"https://doi.org/10.53936/afjare.2022.17(4).24","url":null,"abstract":"This study seeks to identify the internal and external factors determining Ethiopia’s bilateral exports and total trade flows. It uses panel data covering 21 major trading partners of Ethiopia from 2000 to 2017 and estimates an augmented fixed effects gravity model. The results reveal that domestic and foreign revenues increase Ethiopia’s bilateral exports, whereas the country’s foreign direct investment and the population size of the trading partners decrease bilateral exports. The results further show that both the domestic and foreign income and similarity endowment of Ethiopia increase the country’s total trade. The study provides recommendations for the effective implementation of supply side policies to enhance trade.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42443648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-31DOI: 10.53936/afjare.2022.17(4).23
tawfik ben amor
The present study aims to estimate the marginal cost of potable water supply and analyse the implications for more efficient, equitable and income-adequate tap water tariffs in Tunisia. Furthermore, this article aims to develop a new pricing model for potable water. Pricing by the Tunisian water utility focuses on setting water prices to cover average costs, often using designs that increase clogging rates. This results in a large volume of potable water being wasted. To facilitate the efficient estimation of pricing models, we attempt to introduce generalised translog (GT) cost specifications for multiple products including Box-Cox transformations. It turns out that the marginal social cost of providing a cubic meter of water must consist of two components: volumetric charges, at €0.048/m3 , and connection water charges, of €0.055/km.
{"title":"The generalised translog cost function to estimate tariffs for potable water: The case of Tunisia","authors":"tawfik ben amor","doi":"10.53936/afjare.2022.17(4).23","DOIUrl":"https://doi.org/10.53936/afjare.2022.17(4).23","url":null,"abstract":"The present study aims to estimate the marginal cost of potable water supply and analyse the implications for more efficient, equitable and income-adequate tap water tariffs in Tunisia. Furthermore, this article aims to develop a new pricing model for potable water. Pricing by the Tunisian water utility focuses on setting water prices to cover average costs, often using designs that increase clogging rates. This results in a large volume of potable water being wasted. To facilitate the efficient estimation of pricing models, we attempt to introduce generalised translog (GT) cost specifications for multiple products including Box-Cox transformations. It turns out that the marginal social cost of providing a cubic meter of water must consist of two components: volumetric charges, at €0.048/m3 , and connection water charges, of €0.055/km.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42533902","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-31DOI: 10.53936/afjare.2022.17(4).22
P. Chelanga, N. Jensen, Kavoi Mutuku Muendo
This article analyses the level of integration in pastoral markets in Kenya using high-frequency data generated through a crowdsourcing endeavour. The vector error-correction model framework was used to estimate the causal relationships between the short- and long-run market price. The results indicate that a higher proportion of price variation in larger markets in the region was due to market price shocks, while variation in the smaller markets originated from the larger markets. Weekly adjustments and the convergence of prices on a long-run equilibrium after experiencing shocks were also observed. Price transmission was also evident between markets operating along different trading routes. However, markets located close to production catchments exhibited lower price trends, despite being connected. These results suggest a strong influence of the recent infrastructural investments on price transmission between markets in the region. The findings imply that more investments would enhance the competitive trading environment and reduce unidirectional price transmission.
{"title":"Pastoral livestock market integration amidst improvements in physical and communication infrastructure: Evidence from northern Kenya","authors":"P. Chelanga, N. Jensen, Kavoi Mutuku Muendo","doi":"10.53936/afjare.2022.17(4).22","DOIUrl":"https://doi.org/10.53936/afjare.2022.17(4).22","url":null,"abstract":"This article analyses the level of integration in pastoral markets in Kenya using high-frequency data generated through a crowdsourcing endeavour. The vector error-correction model framework was used to estimate the causal relationships between the short- and long-run market price. The results indicate that a higher proportion of price variation in larger markets in the region was due to market price shocks, while variation in the smaller markets originated from the larger markets. Weekly adjustments and the convergence of prices on a long-run equilibrium after experiencing shocks were also observed. Price transmission was also evident between markets operating along different trading routes. However, markets located close to production catchments exhibited lower price trends, despite being connected. These results suggest a strong influence of the recent infrastructural investments on price transmission between markets in the region. The findings imply that more investments would enhance the competitive trading environment and reduce unidirectional price transmission.","PeriodicalId":45228,"journal":{"name":"African Journal of Agricultural and Resource Economics-AFJARE","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41569640","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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