| dc.description.abstract | Markets play a primary role in facilitating forces of demand and supply to
interact such as through price adjustments across time and space. In many
developing countries such as Kenya, food markets are characterized by high
transaction costs, liquidity constraints, information asymmetry, lack of
profitable opportunities and inadequate infrastructure that impede traders from
taking advantage of the price differences between markets from one period to
another. This creates economic inefficiencies and loss of opportunities to improve
the economic well being. This study seeks to estimate how the food markets respond to price changes and the implications for food security. Price transmission and market integration of
dry maize, green maize and beans were evaluated in two major consumption
markets; Nairobi and Mombasa, and two major production markets, Nakuru
and Eldoret. Monthly data from January 1995 to May 2011 was used, the vector
error correction model (VECM) was applied to examine the relationship between
the commodity prices and the markets... | en |
