@article{Mayaka:157599,
      recid = {157599},
      author = {Mayaka, Venny K.},
      title = {AN ASSESSMENT OF DRY BEANS MARKET INTEGRATION IN SELECTED  MARKETS IN KENYA},
      address = {2013-07},
      number = {634-2016-41529},
      pages = {65},
      year = {2013},
      abstract = {Impelled by several strategies to ensure availability of  food and access by all people
through the ministry of  agriculture, the main objective of this study was to  measure
the extent of dry beans market integration between  surplus and deficit markets in
Kenya. These markets were,  Nairobi, Nakuru, Eldoret and Kitale markets. Using
deflated  and seasonally adjusted monthly average price data over 216  months (1994 to
2011) the study presented trade between  Surplus and Deficit markets by applying  Cointegration,
Granger causality and the TAR model to  present the relationship between
the four markets. Results  show that, all markets were integrated of order zero  before
differencing; Co-integration test revealed that all  the markets were co-integrated while
granger causality test  confirmed independent causality with only one market  link
showing bidirectional causality leading to symmetric  price adjustment between Kitale
and Nairobi markets. Using  the TAR model it was found out that it took
approximately 3  weeks for a shock in Nairobi to be transmitted to Kitale  market thus
returning prices to their Threshold. The study  concluded that, to increase the degree of
market  integration, the government in partnership with the private  sector can give
farmers incentives to produce dry beans in  high production areas, improve marketing
infrastructure  like roads and communication facilities. This will greatly  reduce
transaction costs and improve price transmission.  Also, it should avail market
information to farmers through  information banks to help them know which markets
offer  remunerative prices for their dry beans. In return traders  will not take advantage
of increased production to lower  returns accruing to farmers thus, enhancing the
degree of  market integration.},
      url = {http://ageconsearch.umn.edu/record/157599},
      doi = {https://doi.org/10.22004/ag.econ.157599},
}