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How private enterprise organized agricultural markets in Kenya

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  • Jaffee, Steven M.

Abstract

Does liberalization of agricultural markets and an expanded role for the private sector result in a competitive market structure in Africa? The author empirically investigates the organization and development of a dynamic African export-oriented sector - Kenya's horticultural exports - in which the private sector has long had a dominant role. The author highlights the sector's impressive pattern of growth over the past two decades and examines the characteristics of participating private firms, the competitive pattern among those firms, and the institutional means by which they procure raw materials for processing and export. He finds that despite the Kenyan government's direct investments in processing and trading activities and its application of regulations and targeted support measures to strengthen the role of Kenyan Africans in the horticultural trade, most of this trade remains controlled by foreign-owned companies or members of Kenya's small minority Asian and European communities. This paper also examines the extent and forms of competition in this sub-sector and reviews the wide range of institutional arrangements adopted by private firms to coordinate their own processing and marketing activities with the farm-level production of horticultural commodities and raw materials.

Suggested Citation

  • Jaffee, Steven M., 1992. "How private enterprise organized agricultural markets in Kenya," Policy Research Working Paper Series 823, The World Bank.
    • Handle: RePEc:wbk:wbrwps:823
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    References listed on IDEAS

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    1. Geertz, Clifford, 1978. "The Bazaar Economy: Information and Search in Peasant Marketing," American Economic Review, American Economic Association, vol. 68(2), pages 28-32, May.
    2. Svedberg, Peter, 1991. "The Export Performance of Sub-Saharan Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 39(3), pages 549-566, April.
    3. Marsden, K., 1990. "African Entrepreneurs; Pioneers of Development," Papers 9, World Bank - International Finance Corporation.
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    Cited by:

    1. Mariah Ngutu & Salome Bukachi & Charles Owuor Olungah & Boniface Kiteme & Fabian Kaeser & Tobias Haller, 2018. "The Actors, Rules and Regulations Linked to Export Horticulture Production and Access to Land and Water as Common Pool Resources in Laikipia County, Northwest Mount Kenya," Land, MDPI, vol. 7(3), pages 1-22, September.
    2. Iciar Pavez & Jean Marie Codron, 2018. "Contractual price provisions and their determinants in conditions of uncertainty: the case of Chilean fruit exports [Dispositions contractuelles sur les prix et leurs déterminants dans des conditio," Post-Print hal-02618927, HAL.
    3. Pavez, Iciar & Codron, Jean-Marie & Lubello, Pasquale & Florêncio, Maria Cecilia, 2019. "Biosecurity institutions and the choice of contracts in international fruit supply chains," Agricultural Systems, Elsevier, vol. 176(C).
    4. Nagarajan, Geetha & Meyer, Richard L., 1995. "Incorporating finance into a modified subsector framework: The fertilizer subsector in The Gambia," World Development, Elsevier, vol. 23(7), pages 1115-1127, July.
    5. Button, Kenneth, 2020. "The economics of Africa's floriculture air-cargo supply chain," Journal of Transport Geography, Elsevier, vol. 86(C).

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