An economic analysis of the major obstacles to optimal exploitation of Kenya's cut flower export market
Abstract
Horticultural produce export has recently improved both in volume and value. Among
the fresh produce, cut flower have remained on top. Its' increase has been coupled
with quality control, improved packaging and market diversification. This research
paper attempts to analyse fluctuation of real exchange rate (RER), airfreight cost
(AIReo) and tariff (T) and non-tariff barriers (NTBs) as the main obstacles hindering
full exploitation of cut-flower export market.
- Data collected was subjected to diagnostic test like test for stationary. OLS
regression test have later been done to estimate the elasticities of these obstacles
against the dependent variable, cut flower export value (XPT) over a twelve-year
period RER and AIRCO are found to be statistically significant at 5% level. The
dummy variable, seasonality is statistically significant at the first, third and fourth
quarter. During the second quarter cut flower export is not statistically significant.
Publisher
Department of Econimics, University of Nairobi
Description
Masters of Arts (Economics Policy Management)