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Is Livestock Important for Risk Behaviour and Activity Choice of Rural Households? Evidence from Kenya

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  • Katsushi Imai

Abstract

This paper presents an alternative view on causes of differentiation in rural Kenya, focusing on the role of livestock as liquid assets. We use cross-sectional household data in Central and Western Kenya. We first examine the extent to which households are liquidity-constrained in relation with livestock holdings. It is suggested that many rural households are currently liquidity-constrained and liquidity constraints are closely associated with cattle holdings. We also find that a differentiation process in which the households with high endowments and livestock can augment their income by directing more inputs to high-return activities, while poor households who are more likely to be liquidity-constrained cannot. Our results show that the difference in liquid assets and associated credit constraints is one of the possible causes for differentiation of households in rural Kenya. Copyright 2003, Oxford University Press.

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  • Katsushi Imai, 2003. "Is Livestock Important for Risk Behaviour and Activity Choice of Rural Households? Evidence from Kenya," Journal of African Economies, Centre for the Study of African Economies, vol. 12(2), pages 271-295, June.
    • Handle: RePEc:oup:jafrec:v:12:y:2003:i:2:p:271-295
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    Cited by:

    1. Raghbendra Jha & Katsushi S. Imai & Raghav Gaiha, 2014. "Poverty nutrition traps," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 10, pages 246-259, Edward Elgar Publishing.
    2. Mandleni, B. & Anim, F.D.K., 2011. "Climate Change Awareness And Decision On Adaptation Measures By Livestock Farmers," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108794, Agricultural Economics Society.
    3. Jane Kabubo‐Mariara, 2008. "Climate change adaptation and livestock activity choices in Kenya: An economic analysis," Natural Resources Forum, Blackwell Publishing, vol. 32(2), pages 131-141, May.
    4. Kabubo-Mariara, Jane, 2009. "Global warming and livestock husbandry in Kenya: Impacts and adaptations," Ecological Economics, Elsevier, vol. 68(7), pages 1915-1924, May.
    5. Dose, Henriette, 2007. "Securing Household Income among Small-scale Farmers in Kakamega District: Possibilities and Limitations of Diversification," GIGA Working Papers 41, GIGA German Institute of Global and Area Studies.
    6. Ruhangawebare, Godfrey Kalemera, 2010. "Factors Affecting The Level Of Commercialization Among Cattle Keepers In The Pastoral Areas Of Uganda," Research Theses 117797, Collaborative Masters Program in Agricultural and Applied Economics.
    7. Siegmund-Schultze, M. & Rischkowsky, B. & da Veiga, J.B. & King, J.M., 2007. "Cattle are cash generating assets for mixed smallholder farms in the Eastern Amazon," Agricultural Systems, Elsevier, vol. 94(3), pages 738-749, June.
    8. Mandleni, B. & Anim, F.D.K., 2011. "Climate change and adaptation of small-scale cattle and sheep farmers," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108962, Agricultural Economics Society.
    9. Thuo, Mary & Bravo-Ureta, Boris E. & Hathie, Ibrahima & Obeng-Asiedu, Patrick, 2011. "Adoption of chemical fertilizer by smallholder farmers in the peanut basin of Senegal," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 6(1), pages 1-17, March.
    10. Pica-Ciamarra, Ugo & Tasciotti, Luca & Otte, Joachim & Zezza, Alberto, 2011. "Livestock assets, livestock income and rural households: Cross-country evidence from household surveys," ESA Working Papers 289004, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    11. Göran Bostedt & Lonah Mukoya & Deborah Muricho & Gert Nyberg, 2021. "Saving and borrowing behaviour among agropastoralists in West Pokot County, Kenya," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(6), pages 1043-1062, August.

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