Testing for cointegration and granger causality: evidence from selected indigenous egg markets in Kenya
Date
2016Author
Olila, Dennis O.
Wanjau, Kenneth
Pambo, Kennedy
Chimoita, Evans L
Odipo, Timothy
Type
ArticleLanguage
enMetadata
Show full item recordAbstract
Despite the increasing consumer demand for indigenous eggs, particularly among the urban rich in Kenya,
empirical analysis of spatial market integration has received limited attention. This study is an attempt to analyze
the existence of market integration and price transmission among four selected indigenous egg markets. The
study uses secondary data obtained on prices of eggs on a weekly basis during the year 2014. Analysis of
Cointegration and Granger causality was attained using Johansen cointegration approach. Interestingly, results
indicate integration in the indigenous eggs markets in Kenya. While prices of eggs in Kisumu and Eldoret towns
Granger-caused each other, there was no evidence to account for price interactions among the rest of the markets.
These findings strongly indicate asymmetric price transmission within the markets. Taking advantage of the
promising niche provided by indigenous eggs requires policies aimed at unlocking information asymmetry as
well as promoting market access among farmers.
Citation
Olila, Dennis O., et al. "Testing for Cointegration and Granger Causality: Evidence from Selected Indigenous Egg Markets in Kenya."Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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