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Drivers of Horticultural Exports in Kenya

Author

Listed:
  • Silas Kiprono SAMOEI
  • Edwin Kipyego KIPCHOGE

    (Moi University
    University of Eldoret)

Abstract

This study examines major drivers behind horticultural exports in Kenya for the period 2005-2017. Using co-integration model, the study finds out horticultural exports, interest rate, exchange rate, and inflation rate are co-integrated in long-run. These co-integrated series converge to their long-run equilibrium at a speed of 8.53% on each period at 1% statistically significance level. More specifically, the study explores that the interest rate has negative influence on horticultural exports of Kenya, while inflation and exchange rates have positive impact. Thus, the study recommends that the government in Kenya should reduce interest rates using their monetary policies and stabilize macroeconomic environment in order to increase horticultural exports such as targeted exchange rate through application of foreign reserves adjustments.

Suggested Citation

  • Silas Kiprono SAMOEI & Edwin Kipyego KIPCHOGE, 2020. "Drivers of Horticultural Exports in Kenya," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 4(2), pages 27-44.
    • Handle: RePEc:trp:01jefa:jefa0039
    DOI: 10.1991/jefa.v4i2.a35
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    References listed on IDEAS

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    More about this item

    Keywords

    Horticultural Exports; Co-integration; Error Correction Model.;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F00 - International Economics - - General - - - General

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