Hostname: page-component-76fb5796d-wq484 Total loading time: 0 Render date: 2024-04-25T11:14:06.897Z Has data issue: false hasContentIssue false
  • English
  • Français

Price response of herd off-take under market liberalization in a developing cattle sector: panel analysis applied to Kenya's ranching

Published online by Cambridge University Press:  01 April 2009

DICKSON M. NYARIKI
DICKSON M. NYARIKI*
Affiliation:
Associate Professor in Agricultural Economics, Department of Land Resource Management and Agricultural Technology, University of Nairobi, PO Box 29053-00625, Nairobi, Kenya. Email: dicksonnyariki@yahoo.com; dmnyariki@uonbi.ac.ke
Get access Rights & Permissions [Opens in a new window]

Abstract

The influence of price, in view of macro-economic policy change and a set of other factors, on herd off-take rates from ranches in Kenya over a period of 17 years was assessed. An AR(1) equation, based on Nerlove's classical dynamic supply model, was derived and fitted to panel data using the Cochrane–Orcutt procedure. Pooling of data was done to circumvent data insufficiency, thereby improving the statistical power of the analysis. Results indicate that price change has had a significant effect on ranch herd off-take, and climatic factors also account for long-run off-take levels.

Type
Research Article
Information
Environment and Development Economics , Volume 14 , Issue 2 , April 2009 , pp. 263 - 280
Copyright
Copyright © Cambridge University Press 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Baltagi, B.H. (2001), Econometric Analysis of Panel Data, 2nd edn, New York: John Wiley & Sons.Google Scholar
Baptist, B. (1988), ‘Herd and flock productivity assessment using the standard off-take and the demogram’, Agricultural Systems 28: 67–78.CrossRefGoogle Scholar
Dahl, G. and Hjort, A. (1976), ‘Having herds: pastoral growth and household economy’, Studies in Social Anthropology, University of Stockholm, Stockholm.Google Scholar
Davidson, R. and Mackinnon, J.G. (1993), Estimation and Inference in Econometrics, New York and Oxford: Oxford University Press.Google Scholar
Edwards, C. (1985), ‘Productivity and structure in USA agriculture’, Journal of Agricultural Economics Research 37: 1–11.Google Scholar
Evangelou, P. (1984), Livestock Development in Kenya's Maasailand: Pastoralists' Transition to Market Economy, London: Westview Press.Google Scholar
Gittinger, P.J. (1982), Economic Analysis of Agricultural Projects, 2nd edn, Baltimore and London: Johns Hopkins.Google Scholar
Grandin, B.E. and Bekure, S. (1982), ‘Livestock off-take and acquisition’, Sub-programme Committee Review of the EARLs Research in Kenya, Nairobi.Google Scholar
Gujarati, D.N. (1988), Basic Econometrics, 2nd edn, New York: McGraw-Hill.Google Scholar
Gujarati, D.N. (1995), Basic Econometrics, 3rd edn, New York: McGraw-Hill.Google Scholar
Heath, B. (2000), ‘Ranching: an economic yardstick’, in Prins, H.H.T., Grootenhuis, J.G., and Dolan, T.T. (eds), Wildlife Conservation by Sustainable Use, Boston and London: Kluwer Academic Publishers.Google Scholar
Hebden, J. (1983), Applications of Econometrics, Oxford: Philip Allan.Google Scholar
Jaetzold, R. and Schmidt, H. (1983), Natural Conditions and Farm Management: Farm Management Handbook of Kenya, vol. 2, Nairobi: Ministry of Livestock Development.Google Scholar
Jarvis, L.S. (1974), ‘Cattle as capital goods and ranchers as portfolio managers: an application to Argentine cattle sector’, Journal of Political Economy 82: 489–519.CrossRefGoogle Scholar
Jennings, A.N. and Young, R.J. (1980), ‘Generalisation of the Nerlove supply model using time series methodology’, Journal of Agricultural Economics 31: 99–110.CrossRefGoogle Scholar
Johnston, J. (1984), Econometric Methods, 3rd edn, Singapore: McGraw-Hill.Google Scholar
Kim, B.S. and Maddala, G.S. (1992), ‘Estimation and specification analysis of models of dividend behaviour based on censored panel data’, in Baldev, R. and Baltagi, B.H. (eds), Panel Data Analysis, New York: Physica-Verlag Heidelberg.Google Scholar
Maddala, G.S. (2001), An Introduction to Econometrics, New York: John Wiley & Sons.Google Scholar
Mugarura, S. (2001), ‘Pastoral livestock marketing: structure, performance and constraints among the Bahima of Luwero, Uganda’, M.Sc. Thesis, University of Nairobi, Nairobi.Google Scholar
Ndzinge, L.O., Marsh, J.M., and Greer, R.C. (1984), ‘Herd inventory and slaughter supply of Botswana beef cattle producers’, Journal of Agricultural Economics 35: 97–107.CrossRefGoogle Scholar
Nerlove, M. (1958), The Dynamics of Supply: Estimation of Farmers' Response to Price, Baltimore: Johns Hopkins.Google Scholar
Nyariki, D.M. (1991), ‘Ranching: income levels and economic factors affecting off-take’, Paper for the Annual Symposium of the Animal Production Society of Kenya (APSK), Nairobi.Google Scholar
Nyariki, D.M., Makau, B.F., Ekaya, W.N., and Gathuma, J.M. (2005), Guidelines for Emergency Livestock Off-take Handbook, Nairobi: The House of Hedges.Google Scholar
Nyariki, D.M. and Munei, K. (1993), ‘Economic factors affecting the level of beef production from ranching: an example of Kenya's cattle sector’, East African Agricultural and Forestry Journal 59: 163–170.CrossRefGoogle Scholar
Nyariki, D.M. and Wiggins, S. (1999), ‘Livestock as capital and a tool for ex ante and ex post management of food insecurity in semi-traditional agro-pastoral societies: an example from south-east Kenya’, Journal of Social Sciences 3: 117–126.CrossRefGoogle Scholar
Pindyck, R.S. and Rubinfeld, D.L. (1998), Econometric Models and Economic Forecasts, 4th edn, New York: Irwin/McGraw-Hill.Google Scholar
Pratt, D.J. and Gwynne, M.D. (1977), Range Management and Ecology in East Africa, London: Hodder & Stoughton.Google Scholar
Robinson, P.M. (2003), Time Series with Long Memory, Oxford and New York: Oxford University Press.CrossRefGoogle Scholar
ROK–Republic of Kenya (1980)–2004, ‘Statistical abstracts, 1980–2004’, Government Printer, Nairobi.Google Scholar
ROK–Republic of Kenya (1996), ‘Liberalisation in respect of Kenya's agriculture sector’, Report of the Ministry of Agriculture, Livestock Development and Marketing, Nairobi.Google Scholar
ROK–Republic of Kenya (2004a), ‘Reports of the Central Bank of Kenya’, Nairobi.Google Scholar
ROK–Republic of Kenya (2004b), ‘Economic survey’, Government Printer, Nairobi.Google Scholar
Sullivan, G.M., Farris, D.E., and Simpson, J.R. (1982), ‘Livestock management in East Africa: an alternative to uncontrolled communal grazing’, Paper for the American Agricultural Economics Association, Logan.Google Scholar
Thomas, R.L. (1993), Introductory Econometrics, 2nd edn, London and New York: Longman.Google Scholar
Upton, M. (1993), ‘Livestock assessment and modelling’, Agricultural Systems 28: 67–78.Google Scholar
Wooldridge, J.M. (2003), Econometric Analysis of Cross Section and Panel Data, Cambridge, MA: MIT Press.Google Scholar