8 research outputs found
Trustee Related Determinants of Scheme Design in Occupational Defined Contribution Schemes in Kenya
This paper aims to provide an understanding of trustee related determinants of scheme design in occupational defined contribution schemes (ODCS) in Kenya. ODCS involve no promises about the size of the benefits and no risk to the employer. The risk of ending up with low or no benefits falls entirely on the scheme members. It is necessary therefore, that determinants of scheme design are carefully considered in establishment and review of defined contribution schemes to deliver adequate benefits to members. Based on modern portfolio and the life cycle theories, the study investigated the key trustee related determinants of scheme design in ODCS in Kenya. Primary data were collected using a questionnaire administered to scheme administrators in the sample. Descriptive statistics were used to profile respondents, describe sample characteristics and a logistic econometric model was applied to evaluate the trustee related determinants of scheme design. The study showed that the key trustee related determinant of scheme design was investment strategy. From the findings, it was recommended that trustees should in addition consider investment returns, target pension, charges by service providers and annuity rates in designing schemes. This would guarantee members a reasonable standard of living after retirement. Keywords: Scheme Design, Occupational Defined Contribution Schemes, Trustees
Maize Output Supply Response to Climate Change in Kenya: An Econometric Analysis
Sufficient production of maize in Kenya is synonymous to food security and a source of income. Majority of the households in the country grow maize as the main staple food and forms the diet of over 85 percent of the population. Climate change potentially compromises maize production as 98 percent of agriculture is rainfed, threatening food security and rural livelihoods. This study sought to understand the effects of the changing temperature and rainfall patterns in Kenya on maize output. The study adopted Autoregressive distributed lag econometric modeling approach using data for the period between 1970 and 2014. The findings shows mixed response of maize output to rainfall and temperature changes depending on the period, with temperature variability having negative effects. In absence of climate change adaptation and mitigation, Kenya will become more food insecure. There is need to formulate all-inclusive policies paramount in building adaptation and mitigation mechanisms
Employer Related Determinants of Scheme Design in Occupational Defined Contribution Schemes in Kenya
This paper aims to provide an understanding of employer related determinants of scheme design in occupational defined contribution schemes (ODCS) in Kenya. ODCS involve no promises about the size of the benefits and no risk to the employer. The risk of ending up with low or no benefits falls entirely on the scheme members. It is necessary therefore, that determinants of scheme design are carefully considered in establishment and review of defined contribution schemes to deliver adequate benefits to members. Based on modern portfolio and the life cycle theories, the study investigated the key employer related determinants of scheme design in ODCS in Kenya. Primary data were collected using a questionnaire administered to scheme administrators in the sample. Descriptive statistics were used to profile respondents, describe sample characteristics and a logistic econometric model was applied to evaluate the employer related determinants of scheme design. The study showed that the key employer related determinants of scheme design were the employer’s budgetary constraint and recognition of the length of service of scheme members. From the findings, it was recommended that employers should in addition consider pensionable salary, retirement age and occupation in designing schemes. This would guarantee members a reasonable standard of living after retirement. Keywords: Scheme Design, Occupational Defined Contribution Schemes
Influence of Working Capital Management Practices on Financial Performance of Small and Medium Enterprises in Machakos Sub-County,Kenya
Working capital can be considered as source of existence for all types of organizations, whether profit or non-profit organizations, therefore, it is a vital component for any profit making organizations for it influences operational level and sales volume. The purpose of this study was to assess the influence of Working Capital Management Practices on Financial Performance of SMEs in Machakos Sub-County, Kenya. This study was based on these objectives: assessment of the influence of cash management practices on financial performance, determination of the influence of receivables management practices on financial performance and the analysis of the extent to which inventory management practices influences financial performance of SMEs. The study adopted a cross-sectional survey research design which allowed the collection of primary quantitative data through structured questionnaires and interview methods. The target population was 159 Owners / Managers of SMEs trading in Machakos Sub-County. Random sampling technique was used to obtain a sample of 22 SMEs trading in Machakos Sub-County. The data was analyzed using both descriptive and inferential statistics. The findings of the study revealed that; working capital management practices were low amongst the SMEs, since majority had not adopted formal Working Capital Management Practices and there Financial Performance was on a low average. The study further revealed that SMEs financial performance was positively related to efficient cash management, efficient receivable management and efficient inventory management at 0.01 significance level
The Effect of African Growth and Opportunity Act (AGOA) on Exports of Eligible Countries: Panel Data Evidence
There is considerable disagreement in the literature as to whether the unilateral and nonreciprocal preferences have succeeded in promoting developing countries’ exports. One strand of the literature suggests that multilateral removal of tariffs is more effective than unilateral trade preferences. For example, Francois et al (2006) find that developing countries underuse preferences to an average of 4 percent of the goods traded due to burdens directly associated with administration of preferences. Unilateral preferences are criticised for limited product coverage, stringent eligibility rules and selectiveness of inclusion and exclusion of countries. The World Trade Organisation (WTO) offers no formal redress mechanism for ironing out disagreements on country eligibility and product coverage for trade preference agreements. The preference-giving countries and potential beneficiaries have such obligations at own levels. Another strand of the literature suggests that the preferences are good for developing countries, arguing that multilateral removal of tariffs without discrimination erodes the gains for preferences receiving countries. Whereas there is no disagreement that increased openness is better for countries; variants of the literature for example Ng and Yeats (1996) suggest that the underperformance can be attributable to developing countries’ failure to effectively seize the opportunities granted under the preferences. The preferences are often initiated by the preference-giving countries with a view to realizing better outcomes for the beneficiary countries. However, empirical evidence on the outcomes achieved is limited.
This study evaluates the effectiveness of the AGOA (AGOA), a case of a developed country’s (USA) unilateral and nonreciprocal trade policy preference towards developing (Sub-Saharan African) countries to shed light on the issue. The empirical results show that the policy intervention had a dismal effect on U.S. real imports from beneficiary countries. The estimated average marginal effect of the AGOA intervention on U.S. imports of textiles is found to be between 1.7 percent and 1.9percent which are between 22 to 25 times smaller than a typical estimate of 42 percent found by Frazer and Biesebroeck (2010). The results suggest that the gains from the duty-free preferences could be much smaller than the previous literature has shown.
In the current study, weighted least squares coarsened exact matching and propensity score matching estimation techniques are applied on U.S. real imports of 8-digit products from the AGOA treatment-group and the comparable control-group during the 1997-2008 periods. The average treatment marginal effect estimate of 1.7 percent for U.S. imports of apparel products corresponds to the difference in the predicted U.S. imports of apparel of 10.5 percent from the AGOA treatment group and 8.8 percent of the same from the comparable matched control group with propensity scores as matching weights. The estimate suggests that the U.S. imports of apparel from the AGOA treatment group were 1.7 percent higher on average than it could have been if the AGOA intervention was never implemented.
Similarly, the 1.9 percent corresponds to the difference in the predicted U.S. imports of apparel of 7.1 percent from the treatment group and 5.2 percent of the same from the comparable matched control group with the coarsened exact matching weights. This estimate also suggests that U.S. imports of apparel were about 2 percent higher on average than could have been the case without the intervention. The average treatment marginal effects of 1.7 percent and 1.9 percent are statistically significant but are quantitatively a small positive effect, much smaller than the previous empirical literature has shown.
The above results can be interpreted in US 458,000 and US 99,000 higher than if the AGOA intervention was never implemented measured at the year 2000 constant prices. This marginal effect mirrors the 1.7 percent apparel marginal effect.
Similarly, based on the coarsened exact matching weights, the predictive margins corresponding to the 1.9percent average marginal effect are estimated. Based on the exact matching weights, the results show that U.S. real imports from the treatment and control groups are predicted to be US 211,000 respectively. This suggests that U.S. imports of apparel from the treatment group were on average US 99,000 and US 312,000 and US458,000 and US 99,000 from CEM sample with 51 countries and US and besides the groups being matched controls for two factors that are unrelated to the policy intervention but which affect both groups’ outcomes in a similar way. These are U.S. imports history by including lagged dependent variable and the U.S. market size change over time, by including a time effect. By controlling for these factors, the estimated average marginal effect of U.S. of apparel imports from the treatment group become insignificant. This suggests after controlling for time effects and U.S. import history, the effect AGOA intervention on imports of apparel disappears. These results suggest that the empirical evidence linking the AGOA intervention to increased U.S. imports of apparel dissipates and is therefore weak.
The AGOA, 2000 is part of the U.S. Trade and Development Act of 2000. The policy seeks to promote increased Sub-Saharan African country exports to the USA, by allowing for duty-free entry of eligible products for a period of 15 years. Using disaggregated 8- digit Harmonised System panel data on U.S. imports from the policy beneficiaries and the excluded African countries before and after the intervention, the effectiveness of the policy has been estimated.
The sample used has 51 countries consisting of 41 AGOA-eligible and 10 AGOAineligible with multivariate matched characteristics. The policy beneficiary countries served as the ‘treatment’, the excluded matched group served as the ‘control’. The period 1997-2000 is the ‘before’, and 2001-2008 is the ‘after’, intervention periods. Differences between the treatment and control groups are addressed by exact matching and estimated propensity scores to control for bias in the estimation of the treatment effect. The study applied dynamic panel estimation and weighted least squares estimation on the matched data. The dynamic panel data estimation applies the differences-in-differences as an alternative identification strategy to the matched data. The results are comparable. Overall, the results suggest smaller effects than the existing literature has shown
The Effect of African Growth and Opportunity Act (AGOA) on Exports of Eligible Countries: Panel Data Evidence
There is considerable disagreement in the literature as to whether the unilateral and nonreciprocal preferences have succeeded in promoting developing countries’ exports. One strand of the literature suggests that multilateral removal of tariffs is more effective than unilateral trade preferences. For example, Francois et al (2006) find that developing countries underuse preferences to an average of 4 percent of the goods traded due to burdens directly associated with administration of preferences. Unilateral preferences are criticised for limited product coverage, stringent eligibility rules and selectiveness of inclusion and exclusion of countries. The World Trade Organisation (WTO) offers no formal redress mechanism for ironing out disagreements on country eligibility and product coverage for trade preference agreements. The preference-giving countries and potential beneficiaries have such obligations at own levels. Another strand of the literature suggests that the preferences are good for developing countries, arguing that multilateral removal of tariffs without discrimination erodes the gains for preferences receiving countries. Whereas there is no disagreement that increased openness is better for countries; variants of the literature for example Ng and Yeats (1996) suggest that the underperformance can be attributable to developing countries’ failure to effectively seize the opportunities granted under the preferences. The preferences are often initiated by the preference-giving countries with a view to realizing better outcomes for the beneficiary countries. However, empirical evidence on the outcomes achieved is limited.
This study evaluates the effectiveness of the AGOA (AGOA), a case of a developed country’s (USA) unilateral and nonreciprocal trade policy preference towards developing (Sub-Saharan African) countries to shed light on the issue. The empirical results show that the policy intervention had a dismal effect on U.S. real imports from beneficiary countries. The estimated average marginal effect of the AGOA intervention on U.S. imports of textiles is found to be between 1.7 percent and 1.9percent which are between 22 to 25 times smaller than a typical estimate of 42 percent found by Frazer and Biesebroeck (2010). The results suggest that the gains from the duty-free preferences could be much smaller than the previous literature has shown.
In the current study, weighted least squares coarsened exact matching and propensity score matching estimation techniques are applied on U.S. real imports of 8-digit products from the AGOA treatment-group and the comparable control-group during the 1997-2008 periods. The average treatment marginal effect estimate of 1.7 percent for U.S. imports of apparel products corresponds to the difference in the predicted U.S. imports of apparel of 10.5 percent from the AGOA treatment group and 8.8 percent of the same from the comparable matched control group with propensity scores as matching weights. The estimate suggests that the U.S. imports of apparel from the AGOA treatment group were 1.7 percent higher on average than it could have been if the AGOA intervention was never implemented.
Similarly, the 1.9 percent corresponds to the difference in the predicted U.S. imports of apparel of 7.1 percent from the treatment group and 5.2 percent of the same from the comparable matched control group with the coarsened exact matching weights. This estimate also suggests that U.S. imports of apparel were about 2 percent higher on average than could have been the case without the intervention. The average treatment marginal effects of 1.7 percent and 1.9 percent are statistically significant but are quantitatively a small positive effect, much smaller than the previous empirical literature has shown.
The above results can be interpreted in US 458,000 and US 99,000 higher than if the AGOA intervention was never implemented measured at the year 2000 constant prices. This marginal effect mirrors the 1.7 percent apparel marginal effect.
Similarly, based on the coarsened exact matching weights, the predictive margins corresponding to the 1.9percent average marginal effect are estimated. Based on the exact matching weights, the results show that U.S. real imports from the treatment and control groups are predicted to be US 211,000 respectively. This suggests that U.S. imports of apparel from the treatment group were on average US 99,000 and US 312,000 and US458,000 and US 99,000 from CEM sample with 51 countries and US and besides the groups being matched controls for two factors that are unrelated to the policy intervention but which affect both groups’ outcomes in a similar way. These are U.S. imports history by including lagged dependent variable and the U.S. market size change over time, by including a time effect. By controlling for these factors, the estimated average marginal effect of U.S. of apparel imports from the treatment group become insignificant. This suggests after controlling for time effects and U.S. import history, the effect AGOA intervention on imports of apparel disappears. These results suggest that the empirical evidence linking the AGOA intervention to increased U.S. imports of apparel dissipates and is therefore weak.
The AGOA, 2000 is part of the U.S. Trade and Development Act of 2000. The policy seeks to promote increased Sub-Saharan African country exports to the USA, by allowing for duty-free entry of eligible products for a period of 15 years. Using disaggregated 8- digit Harmonised System panel data on U.S. imports from the policy beneficiaries and the excluded African countries before and after the intervention, the effectiveness of the policy has been estimated.
The sample used has 51 countries consisting of 41 AGOA-eligible and 10 AGOAineligible with multivariate matched characteristics. The policy beneficiary countries served as the ‘treatment’, the excluded matched group served as the ‘control’. The period 1997-2000 is the ‘before’, and 2001-2008 is the ‘after’, intervention periods. Differences between the treatment and control groups are addressed by exact matching and estimated propensity scores to control for bias in the estimation of the treatment effect. The study applied dynamic panel estimation and weighted least squares estimation on the matched data. The dynamic panel data estimation applies the differences-in-differences as an alternative identification strategy to the matched data. The results are comparable. Overall, the results suggest smaller effects than the existing literature has shown
Tea Production Response to Climate Change in Kenya: An Autoregressive Distributed Lag Approach.
Tea sector plays a critical role in socio economic development in Kenya. It is a leading foreign exchange earner, a major source of livelihood for most rural communities and significantly contributes to poverty reduction. However, in the last three decades there has been , unstable trends in tea production that has been linked to climate driven stresses. Over the last two decades, tea producing areas in Kenya have been exposed to extreme climate events that include temperature rise, eractic rainfall and growing incidence of extreme weather events such as hail storms, drought and frost. These events are expected to have adverse effects on the largely rainfed tea production with potentially irreversible socio economic effects. This study sought to ascertain the effects of climate change on tea production in Kenya while controlling for economic incentives. The study adopted the Autoregressive distributed lag econometric modeling approach using data for the period between 1979 and 2019. The findings indicate that rainfall being experienced in the usual dry period of January and February, price of tea, and area under tea crop, have a positive and significant effect on tea production. However, rainfall variability, rainfall amount in extended long rain periods, maximum temperature, spending on agricultural development, real effective exchange rate, and price of fertilizer have a negative effect on tea production. Given the negative effects of climate change on tea production, there is a need for collaborative efforts towards developing definite, viable and sustainable adaptation options targeting tea farming
Tea Production Response to Climate Change in Kenya: An Autoregressive Distributed Lag Approach
Tea sector plays a critical role in socio economic development in Kenya. It is a leading foreign exchange earner, a major source of livelihood for most rural communities and significantly contributes to poverty reduction. However, in the last three decades there has been , unstable trends in tea production that has been linked to climate driven stresses. Over the last two decades, tea producing areas in Kenya have been exposed to extreme climate events that include temperature rise, eractic rainfall and growing incidence of extreme weather events such as hail storms, drought and frost. These events are expected to have adverse effects on the largely rainfed tea production with potentially irreversible socio economic effects. This study sought to ascertain the effects of climate change on tea production in Kenya while controlling for economic incentives. The study adopted the Autoregressive distributed lag econometric modeling approach using data for the period between 1979 and 2019. The findings indicate that rainfall being experienced in the usual dry period of January and February, price of tea, and area under tea crop, have a positive and significant effect on tea production. However, rainfall variability, rainfall amount in extended long rain periods, maximum temperature, spending on agricultural development, real effective exchange rate, and price of fertilizer have a negative effect on tea production. Given the negative effects of climate change on tea production, there is a need for collaborative efforts towards developing definite, viable and sustainable adaptation options targeting tea farming