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Distortions to Agricultural Incentives in Kenya

By Alex Winter-Nelson and Gem Argwings-Kodhek


Distorted incentives, agricultural and trade policy reforms, national agricultural development, Agricultural and Food Policy, International Relations/Trade, F13, F14, Q17, Q18,

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  1. 0.000 Free market price from Global Economic Monitor Database.
  2. (1980). 0.2 Vegetables and fruits – tradable n.a. -1.3 -12.5 -21.5 -6.7 -14.8 -7.4 -12.8 -3.2 0.0 Import-competing products a,
  3. a l u e ( '
  4. (1994). Agricultural Policy in Kenya: Applications of the Policy Analysis Matrix, Ithaca: Cornell University Press. Republic of Kenya
  5. Agriculture Industry Manufacturing Services Source: World Development Indicators Online
  6. (1965). Appendix Figure 1: Sectoral shares of GDP,
  7. (1960). Appendix Figure 2: Value of agricultural exports, by commodity,
  8. (1956). Appendix Figure 3: Nominal rates of assistance to maize, Kenya,
  9. (1956). Appendix Figure 4: Nominal rates of assistance to import-competing crops (wheat and sugar),
  10. (1958). Appendix Figure 5: Average applied import tariffs, by SITC,
  11. (1956). Appendix Table 1: Maize data and alternate NRA calculations, Kenya,
  12. (1960). Appendix Table 2: Wheat trade and production data, Kenya,
  13. (1956). Appendix Table 3: Coffee producer NRA, assuming excess cooperative pulping charges,
  14. (1963). Appendix Table 4: Prices for refined sugar, Kenya,
  15. (1962). Appendix Table 5: Gross marketed production of farm products,
  16. (1960). Appendix Table 6 (cont’d): Prices for primary products, Kenya,
  17. (1960). Appendix Table 6: Prices for primary products, Kenya,
  18. (1960). Appendix Table 7: Exchange rate, Shillings per US dollar,
  19. (1961). Appendix Table 8 (cont’d): Production and trade of covered farm products,
  20. (1961). Appendix Table 8: Production and trade of covered farm products,
  21. (1956). Appendix Table 9 (continued): Annual distortion estimates, Kenya,
  22. (1956). Appendix Table 9: Annual distortion estimates, Kenya,
  23. (2004). Are Horticultural Exports a Replicable Success Story? Evidence from Kenya and Cote d’Ivoire”, EPTD Discussion Paper No. 120, International Food Policy Research Institute,
  24. C u r r e n t ) Coffee Tea Fruits and Vegetables Green Beans Source:
  25. (2006). Compendium of National Economic and Trade Indicators by Region,
  26. Farm level Sugar system (cif price) Sugar system (reference price) Source: Authors’ spreadsheet
  27. Figure 1: Agricultural value added, marketed production, and national income,
  28. (1960). Figure 2: Agricultural production and consumption shares by farm product,
  29. (1956). Figure 3: Nominal rates of assistance to exportables, import-competing and all a agricultural products,
  30. (1956). Figure 4: Nominal rates of assistance to all nonagricultural tradables, all agricultural tradable industries, and relative rates of assistance a,
  31. (1956). Figure 5: Nominal rates of assistance to producers of export crops,
  32. five year averages). (a) Primary agricultural production shares
  33. Horticulture is treated inconsistently and incompletely through the period.
  34. (1981). Markets and States in Tropical Africa: The Political Basis of Agricultural Policy,
  35. (2008). Methodology for Measuring Distortions to Agricultural Incentives,” Agricultural Distortions Working Paper 02, World Bank,
  36. n d e x o f C o n s t a n t L C U V a l u e Agricultural Value Added (constant
  37. Non-Agriculture Manufactured, Non-Agriculture Source: Calculated from Statistical Abstract of Kenya (various years).
  38. (1970). Non-product specific (NPS) assistance
  39. Note: M= importable, X=exportable, H=nontradable. a) Percentage mark-up on producer price. b) Based on fob South Africa reported in FAOSTAT.
  40. (1970). Other Agriculture Domestic F&V Tradable F&V Sugar Tea Coffee Wheat Maize (b) Final household food consumption shares
  41. Separate treatment of smallholder coffee in the analysis would imply that a substantial share of coffee production faced a negative NRA that is eight to ten percentage points lower than what is suggested in the baseline analysis (Appendix Table
  42. Source: Author’s calculations Note:
  43. Source: Authors’ spreadsheet a. At farmgate undistorted prices
  44. (2008). Sources: Easterly, World Development Indicators Online, authors calculations See Anderson et al.
  45. (1956). Table 1: Nominal rates of assistance to covered farm products,
  46. (1956). Table 2: Nominal rates of assistance to agricultural relative to nonagricultural industries,
  47. (2003). The Challenges and Way Forward for the Sugar Sub-sector in Kenya, Nairobi: Friedrich Ebert Stiftung.
  48. (1960). total import-competing products exportables Source: Authors’ spreadsheet a. The total NRA can be above or below the exportable and import-competing averages because assistance to nontradables and non-product specific assistance is also included.
  49. Tradable Fruits and Vegetables Exchange Rate Premium Source: Authors’ spreadsheet

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