Drivers of Horticultural Exports in Kenya

Silas Kiprono Samoei and Edwin Kipyego Kipchoge ()
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Edwin Kipyego Kipchoge: Moi University

Journal of Economics and Financial Analysis, 2020, vol. 4, issue 2, 27-44

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.

Keywords: Horticultural Exports; Co-integration; Error Correction Model. (search for similar items in EconPapers)
JEL-codes: C10 E10 E31 F00 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:trp:01jefa:jefa0039

DOI: 10.1991/jefa.v4i2.a35

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