Measurement and sources of multi-factor of productivity in Kenyan agriculture: 1964-1989
Abstract
The twofold purpose of this study was to construct a multi-factor
productivity index for Kenyan agriculture and to analyze the factors
responsible for this productivity change. A partial productivity index for the
Kenyan agricultural labour was also constructed. The period covered by the
study was 1964 to 1989; the time following Kenya's independence. The data
used for the study were collected mainly from Kenya with supplementation
from international sources.
The multi-factor productivity and the partial productivity of labour
indices were constructed using the Laspeyres indexing procedure. Productivity
index results revealed that Kenyan agricultural productivity has remained
generally stagnant since 1964. However, slight growth was observed over the
earlier period covering 1964 to 1978. From 1979, there has been a declining
trend in productivity. Analysis of the productivity measures shows that labour
and multi-factor productivity results were quite similar, mainly because labour
represents a large proportion of total inputs used in agricultural production.
The log-linear functional form was used to regress the multi-factor
productivity index against identified factors contributing to this productivity
change. The results showed that research and support services, education
level of farmers and weather were not statistically significant. The importance
of estimating and evaluating the sources of productivity growth lies in
information gained for agricultural policy formulation.
Citation
Master of SciencePublisher
The Faculty of Graduate Studies,The University of Guelph