Analysis of Vertical Price Transmission along Sugar Supply Chain in Kenya
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 1
Abstract
Asymmetry of price transmission uses price data and information to determine market performance and imperfections. The analysis may be spatial (Horizontal) or along the marketing chain (Vertical). This paper sought to analyze vertical price transmission in the Kenyan sugar market supply chains. Time series data was extracted from the Kenya Sugar Board Year Book of Statistics. Monthly Sugar prices for producers, wholesalers and retailers were obtained for the period of 2003 to 2014. Tests for unit root using Dickey Fuller test, Kwiatkowski-Phillips-Schimidt-Shin (KPSS) test and Phillips-Perron tests found out that the time series exhibited unit root. Johansen cointegration test showed no co-integrating equations. A Vector Autoregression was estimated. Granger Causality Wald tests indicated that ex-factory prices Granger caused wholesale and retail prices, while retail prices did not granger cause wholesale nor ex-factory prices. TAR and MTAR were estimated and the null hypotheses of no threshold cointegration and symmetry in prices were rejected. The Kenya sugar market showed some imperfections, and it was concluded that from the producer to the consumer, the Law of One Price does not hold for Kenyan sugar markets.
Authors and Affiliations
Wilfrey Vuhya Siahi, Vincent N’geno, Philip Mulama Nyangweso
Keywords
Related Articles
- EP ID EP414446
- DOI 10.9790/5933-0901014451.
- Views 236
- Downloads 0
Empirical Appraisal of Nigerian Insurance Sector and the Performance of Nigerian Stock Exchange
The work empirically appraised the Nigerian insurance sector and the performance of Nigerian stock exchange. The inadequacy of capital, inability to mobilize adequate financial resources for trading and investment on the...
The Effect of Discussion Methods And Power Point Media on The Results of Learning on The Economic Study of Gama Cendekia Vocational Business Surabaya
Fitri Nur Inayati (2018), Effect of Discussion Methods and Media Power Point on Learning Outcomes in the Business Economics Subject of Gama Cendekia Vocational School Surabaya. This study aims to determine the effect of...
Effect of Liquidity Risk on Performance of Islamic banks in Bangladesh:
Banks as a financial institution are facing different kinds of risk now a days. Liquidity risk is one of them. As liquidity crisis is affecting the banking industry of Bangladesh the study aims to analyze the effect of L...
Rule of Law and Income Inequality in Bulgaria: An Empirical Approach
The current paper examines the impact of income inequality on rule of law in Nigeria. In governance, Bulgaria was and is having a poor quality of institutions for the past two decades. In this study, we consider rule of...
Territorial Development: Literature Review
Today, many countries are interested in the territorial issues and more particularly in territorial development and the conditions necessary for its implementation. The objective of this article is to present a review of...