Browsing by Author "Onono, Perez Ayieko"

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    Economic Effects of Inter-community Conflicts In Kenya: Evidence of the Importance of Peace in the Realization of Sustainable Development
    (International Journal of Cooperation & Development, 2016) Onono, Perez Ayieko
    The sixteenth goal of the United Nations’ seventeen sustainable development goals (SDGs) seeks to promote peaceful and inclusive societies for sustainable development. Therefore including the reduction of all forms of violence and violence-related deaths, the reduction of illicit arms and capital flow, the recovery and return of stolen property, and the fight against all forms of organized crime among others. Understanding the effects of conflicts clarifies the linkage and interdependence of the peace agenda and the realization of the majority of the SDGs. Kenya, which is a party to the resolutions of the General Assembly of the United Nations, has in its history experienced episodes of inter-community conflicts arising from competition for control of scarce natural resources among pastoral communities, election related violence, and clashes arising from land boundary disputes. On the basis of the experiences of ethnic conflicts during election periods and literature review, this paper discusses the economic effects of inter-community conflicts in Kenya and points out how such effects make peace building and conflict resolution critical to the achievement of other SDGs.
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    Effects Of East African Community Customs Union On Trade And Economic Growth In Kenya
    (Kenya Researchjournali’s Journal of Economics, 2015) Boiwo, Silas Tuitoek; Onono, Perez Ayieko; Makori, Steve
    During the 1990’s the world experienced a new wave of regional integration agreements (RIAs) that reached unprecedented proportions. The increasing importance of regional integration agreements and in particular their extraordinary expansions during the 1990’s are among the most salient developments of the international trading system and its believed to be a vehicle for the promotion of trade and economic growth. The main driver for increasing number of Regional Integrations Agreements on the African sub-continent is the need to increase regional co-operation by creating a unified economic bloc and building blocs for stronger integration between member countries that will eventually lead to the creation of an African Economic Community. The East Africa Community was resurrected in 1999 which was transformed to a custom union in the year 2005. One of the objectives of the custom union was aimed at improving trade between the member states. The objectives of this study were to determine the trade effect of the EAC custom union and to analyze the effect of intra-EAC trade on economic growth in Kenya. Time series data for the years 2000 to 2013 was used for analysis. The coefficient of the EAC dummy used to measure the effect of custom union was found to be statistically significant and positive. This finding shows that after the formation of the custom union, the volume of trade in Kenya has increased proportionately by 0.9083 percent. For the effect of the custom union on Kenya intra-EAC trade, the EAC dummy coefficient was also found to be positive and statistically significant. This means that after the formation of the custom union, the GDP of Kenya has proportionately increased by 0.6214 percent. The study revealed that the formation of the EAC Custom Union has had positive effect on trade and economic growth in Kenya. The findings also show that after the formation of the custom union, increase in the volume of trade for Kenya has been realized. Therefore the formation of the EAC customs union is an important step in the process of deepening regional integration among the member states.
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    Effects of Fiscal Decentralization on Poverty Reduction in Kenya.
    (International Journal for Innovation Education and Research, 2018) Mwiathi, Peter Silas; Wawire, Nelson H. W.; Onono, Perez Ayieko
    The Kenya government has instituted fiscal decentralization over the years to promote social economic development, reduce poverty and income inequality and ensure balanced regional development. Despite these efforts, poverty levels have remained high in Kenya. The literature on the relationship between fiscal decentralization and poverty has been rather inconclusive about the effects of fiscal decentralization on poverty. The main objective of this paper was to analyse the effects of fiscal decentralization on poverty in Kenya. Using cross-county panel data from 2002 – 2014 and published data from government agencies, UNDP reports and World Bank reports, the paper estimated various empirical models to analyse the effects intergovernmental transfers, sub-national own-source revenue and county expenditure on poverty in Kenya. The study established that the effect of fiscal decentralization on poverty depends on the nature of decentralization and the extent of fiscal decentralization as well as the county specifics. The paper therefore, recommends the need for for county governments to have adequate own-source revenue to finance their expenditure as opposed to relying on intergovernmental transfers from national government.
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    Foreign direct investment, institutional quality and economic growth in Kenya
    (International Journal of Development and Sustainability, 2016) Meah, Daudi Ong’ang’a; Onono, Perez Ayieko; Ocharo, Kennedy Nyabuto
    The study was done to investigate the effect of FDI on economic growth in Kenya, to determine the influence of institutional quality on the effect of FDI on economic growth, and to determine the effects of structural breaks on economic growth in Kenya. This was based on the failure of the reviewed studies to capture the role of institutional quality in this effect. Markets that are likely to persist in low-quality-institution jurisdictions are those in which exchange is simultaneous and self-reinforcing. Such markets are common either because many of the exchanges simply meet the conditions for self-reinforcement or just because they are so lucrative that the absence of self-reinforcement makes even risky exchanges worthwhile. However, many transactions require a third party for their reinforcement. These are non-simultaneous transactions whereby the quid is needed at one time or place and the pro at another. Data used in the study were obtained from published sources for the period 1975 to 2013 and they were subjected to statistical analysis. To answer objective one, two, and three the study used ordinary least square estimation and the findings were that FDI affects economic growth positively and institutional quality has a growth-enhancing effect on FDI.
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    Macroeconomic Variables, Volatility and Stock Market Returns: A Case of Nairobi Securities Exchange, Kenya
    (International Journal of Economics and Finance;, 2014) Kirui, Evans; Wawire, Nelson H. W.; Onono, Perez Ayieko
    This study sought to evaluate the relationship between Gross Domestic Product, Treasury bill rate, exchange rate, inflation and stock market return in Nairobi Securities Exchange Limited. The study determined the response of the stock returns to a shock in each of the macroeconomic variables. The effect of changes in each of the macroeconomic variable on the volatility of stock returns in Nairobi Securities exchange limited was also determined. Engle-Granger two step method was used to establish the co integrating relationship between stock returns and the macroeconomic variables. Threshold Genaralized Autoregressive Conditional Heteroscedasticity (TGARCH) model was used to capture the leverage effects and volatility persistence at the NSE. Published time series quarterly data from 2000 to 2012 was sourced from the Central Bank of Kenya, Kenya National Bureau of Statistics. Empirical results of the regression model revealed that exchange rate showed a significant relationship with stock returns. For a one percentage increase in depreciation of a domestic currency, the model predicted stock returns to decrease by 1.4 percent. Gross Domestic Product, Inflation and the Treasury bill rate indicated insignificant relationships. The effects of one standard deviation shock on each of the macroeconomic variable on stock returns revealed that shock in exchange rate was negative but eventually reverted back to equilibrium thereafter. The results of the TGARCH model for exchange rate, Gross Domestic Product and Treasury bill rate revealed that the impact of news was asymmetric and there was presence of leverage effects. There was absence of volatility persistence among all the macroeconomic variables.
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    Productivity and Its Determinants in Smallholder Tea Production in Kenya: Evidence from Bomet and Nyamira Counties of Kenya
    (Journal of Agricultural Economics and Rural Development, 2018) Ateka, Josiah M.; Onono, Perez Ayieko; Etyang, Martin
    The smallholder tea sub-sector makes an important contribution in the Kenyan economy. Although subsector has enjoyed relative growth in terms of acreage, output and number of growers, productivity has remained low. Industry trends show that there are wide differentials between actual and potential yields, indicating underlying production inefficiencies and considerable potential to improve the farmers’ income and livelihoods. This study used a semi–log productivity regression model to investigate the determinants of productivity in smallholder tea production in Kenya. The study used survey data of a random sample of 525 tea farming households collected from two leading production regions in Kenya. The results show that location specific heterogeneities, farm size, the intensity of family labor applied in tea farming, access to extension through the farmer field schools, credit utilization and the tea marketing arrangements have significant influence on tea productivity. In order to exploit the existing potential, we recommend policies that focus on correcting imperfections in the agricultural labour markets, consolidation of small tea farms, and expansion of credit and extension programs. Additionally, the policy formulation and implementation process should take into account the existent regional heterogeneities in the different tea growing areas of Kenya.
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    The response of maize production in Kenya to economic incentives
    (International Journal of Development and Sustainability, 2013) Onono, Perez Ayieko; Wawire, Nelson H. W.; Ombuki, Charles
    Agricultural development policy in Kenya has emphasised the use of incentives towards increased production and therefore self-sufficiency in maize which is a basic staple for most households. The channels used to provide incentives to maize farmers over the years include setting higher producer prices; subsidisation of inputs; provision of agricultural credit, research and extension services; construction and maintenance of roads, development of irrigation and water systems; legislative, institutional and macroeconomic reforms. Despite these efforts outputof maize has remained below domestic requirements in most years and the country continues to rely on imports to meet the deficits. Studies have assessed the responsiveness of maize to output price and reported inelastic responses and have recommended policies targeting non-price incentives to complement prices for the required increased production of maize. The studies, however, did not analyse the influence of the non-price incentives on the production of the crop. The findings of those studies are therefore deficient in explaining the relative importance of different non-price incentives and how they complement prices in influencing maize production in Kenya. This study investigated the response of maize production to both price and non-price incentives. The aim of this study was to ascertain the relative importance of non-price factors in influencing production of the crops as well as complementarity between price and non-price incentives. The findings show that maize production responds positively to its output price, development expenditures in agriculture, maize sales to marketing boards, growth in per capita GDP, liberalisation and governance reforms. However, maize production responds negatively to fertiliser price and unfavourable weather conditions. The response of maize output to its price is lower with rising inflation and grain market liberalisation.
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    Response of Sorghum Production in Kenya t Response of Sorghum Production in Kenya
    (Sustainable Agriculture Research, 2018) Onono, Perez Ayieko
    Expansion of sorghum production in the arid and semi-arid areas in Kenya has been singled out as a potential for addressing food security challenges due to climate shocks affecting maize production and reduced availability of arable land in the medium and high potential areas. Towards achieving this government has used guaranteed minimum output prices, input subsidies and public investments to promote agricultural developments as some of the instruments of policy to provide incentives to farmers. Literature is deficient of studies on production behaviour of sorghum in the country with respect to market prices and public investments. This study provides empirical evidence on the response of sorghum production to output and input prices as well as to public investments. The study used data spanning the period 1978 to 2014 to fit an autoregressive distributed lag (ARDL) specification of the output response equation using the EViews statistical software. The findings show that sorghum production in Kenya does not respond to increases in its output price and is not adversely affected by input prices. Increased development spending in agriculture lead to increased sorghum production and also increase use of fertilizers and certified seeds. The findings suggest that policy interventions based on output prices and input prices alone would not yield the desired increased expansion in sorghum production. The government should increase budgetary allocations to agricultural development.