Agricultural Trade Liberalization in Kenya and Implications for Kenya China Trade Relations

In developing economies such as Kenya, agriculture is a ‘special’ sector and a fundamental engine for economic growth. Kenya has actively pursued agricultural trade liberalization though the existing studies have not clearly delineated its implications on Kenya-China trade relations. What is evident though is that the trade deficit between Kenya and China had widened to the tune US$3.5 billion as of 2018. This is notwithstanding the fact that the trade relations have been beneficial to Kenya in terms of affording a market to major Kenyan exports. Nevertheless, there is flimsy research on the implications of agricultural trade liberalization on Kenya-China trade relations. It is in this regard that the study sought to give direction on how Kenya can capitalize on agricultural trade liberalization to address the widening trade deficit with China. Emphasis was on how tariffs in agriculture and foreign direct investment impact on Kenya-China trade relations. The study was guided by the theory of firm heterogeneity. The study utilized secondary data with United Nations Conference on Trade and Investment (UNCTAD), UN Comtrade database and the World Trade Organization as the sources of the data. The study established that there is limited FDI inflows in the agricultural sector. It is therefore important for the government to ensure that there is conducive environment for investment in agriculture so as to diversify the share of Kenya’s agricultural exports to China. Also, there is need for the adoption of policies that stimulate the diffusion of new technology in agriculture that would facilitate the transition to climate smart crops that would increase investment opportunities as well as contribute to Kenya’s exports. Moreover, since agricultural products face tariff barriers in China, Kenya needs to renegotiate its terms of trade with China in attempts to narrow down its trade deficit. Keywords: Agricultural trade liberalization, trade deficit, tariffs, foreign direct investment DOI: 10.7176/DCS/10-1-07 Publication date: January 31st 2020

Short and long-run impact of trade liberalization on agricultural growth in Kenya

Purpose: The focus of the study was on establishing the short and long-run impact of trade liberalization on agricultural growth in Kenya. Emphasis was on the influence of tariffs, foreign direct investment and trade openness on agricultural growth in Kenya. Approach/Methodology/Design: The study utilized time-series data from 1980 to 2017. The source was the World Bank Development Indicators. The autoregressive distributive lag bounds test ascertained whether there was cointegration. Findings: The study established that trade openness is critical in enhancing agricultural growth in Kenya. As Kenya opens its borders for smooth movement of agricultural produce, there is a resultant increase in outputs for the domestic and foreign markets. Besides, foreign direct investment contribution to agriculture is negative since it tends to relate to other sectors of the economy other than agriculture. Consequently, farmers are less likely to benefit from technology transfer and the advent of new processes in agriculture. Further, tariffs did not influence agricultural growth in Kenya probably because, despite Kenya making commitments to liberalize its trade, the implementation of the policies on free trade was not forthcoming. Practical Implications: The study contributes to the understanding of how open trade influences growth in the agriculture sector in Kenya. It reflects that trade openness is detrimental to agricultural growth in the short-run but vital in spurring growth in the agricultural sector in the long-run. Originality/Value: The study validates the firm heterogeneity model by establishing that open trade in agriculture, increases the capacity of productive firms to the extent of exporting products in international markets. Also, the negative influence of foreign direct investment on agricultural growth confirms the theory's assertion that investments are channeled to high potential sectors of the economy.peer-reviewe

Coping strategies and food insecurity experiences : the case of female-headed agricultural households in Liberia

PURPOSE : Realities of food insecurity are more pronounced with a specific focus on women in developing countries. The need to understand the varied food insecurity experiences among female-headed agricultural households in such contexts provided the rationale and motivation for this study. DESIGN/METHODOLOGY/APPROACH : The study employed a quantitative cross-sectional approach, drawing on the binary logistic regression to determine the influence of socioeconomic status on household coping mechanisms in response to food insecurity in a stratified random sample of 509 female-headed agricultural households in Liberia. FINDINGS : The results revealed that most respondents experienced food insecurity reflected in inadequate food availability, an inability to eat nutritious food and the necessity to skip meals. In response, they employed coping strategies such as borrowing money, selling assets, and reducing health expenses, which were influenced by socioeconomic characteristics such as gender, education, and marital status. PRACTICAL IMPLICATIONS : The study illustrates the multi-layered and complex context of food insecurity among women. From these findings, the study proposes the consideration of such dynamics to inform practical and relevant mitigatory policy approaches to the target demographic. SOCIAL IMPLICATIONS : With food insecurity being a social problem, the study identifies its social impact by documenting the participants' lived experiences. Thus, the study contributes to a deeper understanding of food insecurity across different segments of society. ORIGINALITY/VALUE : The study draws its originality from understanding how food insecurity impacts female-headed households, highlighting the often-ignored gender dynamics of food insecurity in developing nations and aggregating the coping strategies and food insecurity expenses.https://www.emerald.com/insight/publication/issn/0007-070Xhj2024School of Public Management and Administration (SPMA)SDG-01:No povertySDG-02:Zero Hunge

Digital Financial Inclusion and Financial Health in Kenya: Gendered Analysis

This paper adopted propensity score matching to estimate the propensity of digital financial inclusion among women in Kenya and the average treatment effect of digital financial inclusion on financial health of women in Kenya. Utilizing the Financial Access Survey 2021 dataset on 22024 households, the study found that the socio-demographic aspects that contributed to the digital financial uptake among women was the level of education, marital status, religion, age, and place of residence, with significant differences between users and non-users of digital finance. In addition, with mobile phone and television ownership, there was a higher likelihood of women using digital finance, with a significant difference between users and non-users. Additionally, it was found that women in Kenya using digital finance are more likely to be financially healthy. We, therefore, recommend that more targeted approach by government and financial institutions towards enhancing digital literacy, the government needs to implement gender-responsive policies that would foster the subsidization of mobile devices and offer incentives for mobile network operators to strengthen rural network connectivity, and the Kenya government and financial institutions could capitalize on accessible communication channels such as mobile phones, radio, and community outreach programs

Digital Financial Inclusion and Financial Health in Kenya: Gendered Analysis

This paper adopted propensity score matching to estimate the propensity of digital financial inclusion among women in Kenya and the average treatment effect of digital financial inclusion on financial health of women in Kenya. Utilizing the Financial Access Survey 2021 dataset on 22024 households, the study found that the socio-demographic aspects that contributed to the digital financial uptake among women was the level of education, marital status, religion, age, and place of residence, with significant differences between users and non-users of digital finance. In addition, with mobile phone and television ownership, there was a higher likelihood of women using digital finance, with a significant difference between users and non-users. Additionally, it was found that women in Kenya using digital finance are more likely to be financially healthy. We, therefore, recommend that more targeted approach by government and financial institutions towards enhancing digital literacy, the government needs to implement gender-responsive policies that would foster the subsidization of mobile devices and offer incentives for mobile network operators to strengthen rural network connectivity, and the Kenya government and financial institutions could capitalize on accessible communication channels such as mobile phones, radio, and community outreach programs