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Periodical article | Leiden University catalogue | WorldCat |
Title: | Aggregate Farm Supply Response in Kenya |
Author: | Sharma, K.L. |
Year: | 1992 |
Periodical: | Eastern Africa Economic Review |
Volume: | 8 |
Issue: | 2 |
Pages: | 92-101 |
Language: | English |
Geographic term: | Kenya |
Subjects: | agricultural policy agricultural production Agriculture, Natural Resources and the Environment Development and Technology Economics and Trade |
Abstract: | This paper provides estimates of internal terms of trade elasticity of aggregate agricultural output in Kenya for the period 1972-1990. Terms of trade of agriculture, time trend as a proxy for nonprice variables, weather and lagged output are included as explanatory variables in regression analysis. The Nerlovian loglinear specification is used for estimation. The variables indicate positive response and explain 98 percent of the variation in aggregate farm output. The aggregate long-run terms of trade elasticity (.16) is twice the size of the short-run supply elasticity (.08). Linear time trend coefficient (.015) turns out to be positive and highly significant which indicates a shift in the supply function at about 3.5 percent a year. Policymakers would do well to devote at least as much attention and effort to the development of nonprice factors like technology, infrastructure, and human capital as to price movements for stimulating agricultural output in Kenya. Bibliogr., sum. |