| dc.description.abstract | The study examines the relationship between structural adjustment programs and agricultural
growth in Kenya. Statistics indicate that agricultural value added growth in Kenya is important
as it influences the overall GDP growth. Despite this, the performance of the agricultural sector
has shown mixed fortunes since independence. Adoption and implementation of reforms such as
currency devaluation, trade liberalization, privatization, and removal of subsidies in the 1980s
and 1990s was seen as a way of reversing the widespread social and economic problems of
developing nations. However, there exists a difference in opinions on how these structural
adjustment programs have affected the agricultural sector performance.
The study uses time series data spanning from 1975 to 2010 to analyze how the above reforms
affected Kenyan agriculture .. Tests of normality, unit roots test and cointegration test was
applied to determine the properties of the data. An error correction model was estimated to link
the short run and the long run relationships.
Results indicate that structural adjustment programmes had a negative and significant long run
effect on per capita agriculture GDP. The study concluded that Post Election Violence has a
negative and significant long run effect on the per capital agriculture GDP. The study also
concluded that the lagged per capital agricultural performance has a positive and significant effect on the
per capita agricultural performance. The results also show that weather indicators (temperature and
precipitation), and per capita infrastructure did not have a significant effect on the short run and long run
per capita Agricultural GDP.
The study recommends that some policies such as the removal of subsidies should be eliminated.
Other policy recommendations are to enhance adaptation of privatized agricultural institutions;
encouragement of value addition in primary agricultural products. on price mechanisms policies such as
development of infrastructure in rural areas should be encouraged and the government should ensure
political stability in electioneering years. | en_US |
