DeJong D. N., Nankervis J.C., Savin N. E., Whiteman C. H., (1992). Integration versus trend
stationarity in time series. Econometrica 60, 423-433.
Delgado C.L., Hopkins J. and Kelly V.A. (1998). Agricultural Growth Linkages in SubAfrica. Research Report 1
demand is less than the full capacity production (c) getting benefits of the greater economies of
scale due to large market; and (d) increasing the rate of investment and technological change.
Therefore, export promotion strategy is considered as an impor
discusses some shortcomings of the previous studies relevant to the context. In addition it
explains the conceptual framework. Chapter 3 describes data sets and the sources from which
they were collected, it also provides a description of the specific tim
4.10.3 Analysis of Variance (ANOVA)
Table 4.19: Analysis of Variance (ANOVA) results
The F value of 22.08 indicates that the overall re
According to Brooks (2003) dynamic models based on cointegration relationships has
now become the mainstay of the econometric time-series analysis. Among other things, it has
now been accepted that most economic time series are non-stationary in their lev
1961-1997, using cointegration and error correction techniques. The results indicates that
there was one long-run equilibrium relationship among the four variables, and the causal
relationship flows from the growth in exports to the growth in GDP both in
According to the Nakuru district annual report (2005), over 50% of the registered cooperatives in
the district are dormant. The sad issue is that over 70% of the dairy cooperatives in the district
are either dormant or have collapsed. The purpose
4.1.2 Cointegration Test
The Engel-Granger cointegration test was applied to examine whether agricultural growth
and economic growth are cointegrated. The results of the Engel-Granger cointegration model
estimation for the all sample periods were presente
(2001). Results from the empirical analysis provide strong evidence indicating that agriculture is
an engine of economic growth. Furthermore, the results also suggested that trade openness had a
positive effect on GDP per capita. The study provided eviden
4.9.3 The effect of the state of roads on the transportation process.
The transport function is chiefly one of making the product available where it is needed, without
adding unreasonably to the overall cost of the produce. Adequate performance of this fu
agricultural growth rate due to various factors including; the oil shocks of 1973 and 1979;
fluctuations in international commodity prices of key agricultural exports like coffee and tea;
poor implementation of projects by the government; as well as the c
ADF tests for models with moving average errors and positive serial correlation. PP test is robust
with respect to unspecified autocorrelation and heteroscedasticity in the disturbance process of
the test equation (Cang and Seteeram, 2012). However, when
4.5.9 Cooperative storage facilities
Milk being a highly perishable commodity, the researcher found the need to establish the
availability and adequacy of the milk marketing cooperative storage facilities. The results are
indicated in figure 4.6.
Allows for interaction in the determination of the relevant economic variables of
independent of the choice of the endogenous variables.
Allows for explicit hypotheses tests of parameter estimates and rank restrictions using
likelihood ratio tests
I dedicate this project to my beloved wife Anne Cherotich Malel, my beloved daughter Purity
Jasmine Chebet Ngeno and my beloved parents Christine Chepkemoi Rugut and Paul
Kipngeno Rugut for their encouragement, patience, unquestionable devotion
deterministic trend (Granger, 1988 cited in Belloumi, 2009). In order to verify whether
this preliminary condition was fulfilled and to avoid the problem of spurious regression, the time
series properties of the GDP, AGRI, IGDP, SGDP were tested by applyi
agriculture tends to lower raw material costs and thus raise profitability in manufacturing
(Looney, 1997). For example a 1% increase in industrial output increases agricultural output by
10%. The short-run results of Granger causality test in Table 11, i
able to separate short-run from long-run effects (Subramaniam and Micheal, 2009). Gonzalo
(1994) observed that cointegration possess the following characteristics;
a) Incorporate all priori knowledge about the presence of unit roots; this eliminates the
can be viewed as a generalization of the ADF test, which accounts for the heteroscedasticity
and serially correlated error terms. A non-parametric correction to the t-test statistic is undertaken
to account for the serial correlation that might be present
All decisions are made by the managing
The management is composed of highly
What can be done to improve the quality of management of the milk marketing
SECTION D: POLICIES
According to you, what is your opin
Awokuse (2008) examined the relationship between trade and economic growth in
Argentina, Columbia and Peru with emphasis on both the role o exports and imports. Granger
causality test and impulse response functions were used to examine whether growth in t
QUESTIONNAIRE FOR COOPERATIVE MANAGERS
Answer the given questions correctly by reading the instructions for each question before giving
responses. The information given will be treated with confidentiality as it is only required for
agricultural sectors, as well as restructuring of Ministry of Agriculture were among the
reforms that have been implemented. The deregulation of markets, the removal of price controls,
and trade liberalization were aimed at encouraging the private sector
African Agriculture. Global Market of Emerging Market Economics 2(2010), 113-152.
Birner R. and Resnick D., (2010). The political Economy of Policies for smallholder
Agriculture. World Development, Vol. 38, No. 10, pp. 1442-1452, 2010.
Blandford D. and Hi
4.9.4 Frequency of cooperatives buying milk from the farmers
The researchers also sort to establish the frequency of milk marketing cooperatives buying milk
from the farmers. The results are indicated in figure 4.16.
Figure 4.16.frequency of cooperative b
4.3.3 Granger Causality Test.
According to the Granger Representation theorem, if the variables are cointegrated, there
must be at least uni-directional causality between variables (Tang and Lai, 2011). Since there was
cointegration among the variables, t
breaks since the date of the break is estimated using a priori information. More recent
tests devised are endogenous, where the break point in the data is determined by the tests.
Li (2008) asserts that the common test for changes in parameters over time
between exports and economic growth. Empirical evidence from the ASEAN Countries.
Economic Letters 49(1995) 329-334.
Ahmad J. and Kwan C. C. (1991). Causality between exports and economic growth:
Empirical evidence from Africa, Economic Letters 37(1991) 2
Chow G. C. (1960). Tests of equality between sets of coefficients in two linear regressions.
Econometrica 28(1960), 591-605.
Clements M. P. & Hendry D. F., (1997). An Empirical study of seasonal unit roots in
forecasting, International Journal of Forecast
The sectoral transformation in the Kenyan economy has not been in tune with the structural
transformation hypothesis propounded in development literature. As per the hypothesis, the
transformation takes place from agriculturally dominant traditio