Resource allocation, commodity supply and income distribution aspects of agricultural pricing policy in Kenya

Abstract

This research is an attempt to integrate in a micro econometric framework. The practice of agricultural pricing on the one hand with the phenomena of African farmer response, commodity flow through the marketing network and economic balance across regions and over agents on the other hand. We shall attempt to answer the following basic and related questions: How is the price vector faced by farmers and commodity distribution agents determined, and how do they respond to it? How has marketing policy affected sectoral and regional economic balance? Is marketing policy consistent with the production, locational and income distribution strategy of the official development program?

Western Kenya, and in particular, Nyanza and Western provinces will be the major laboratory for obtaining most of the desired field data as the area produces my preferred crop combinations. In addition, published time series data and Kenya Government cross section farm survey data will be used. Several data analysis techniques will be employed including multivariate regression analysis to manipulate data to answer the above questions as well as to make some policy suggestions.