The Impact of Research and Development Investment on Agricultural Sector Performance in Kenya
DOI:
https://doi.org/10.47941/jap.161Keywords:
Total R&D investment, long run determinants, short runs determinants, agricultural sector and performanceAbstract
Purpose: The purpose of the study was to assess the impact of research and development investment/expenditure on the agricultural sector performance in Kenya.
Methodology: The study took the peoples impact assessment direction. The data for this study was collected from various government agencies such as KARI, ASTI, Kenya Agricultural Sector Data compendium website, FAOSTAT, World Bank among others. Co-integration and error correction modeling methods were used in analyzing the data for this study.
Results: Co-integration results for both the parsimonious and non-parsimonious model indicated that that there is a long-run relationship among the variables in the agriculture performance in Kenya. Further, findings in this study indicated that the variables under study were insignificant determinants of the long run Total Factor Productivity of the agricultural sector. Meanwhile, Trade openness was the only significant determinant of the short run agricultural Total Factor Productivity.
Unique Contribution to Policy and Practice: This study recommends the institutionalization of policies aimed at ensuring interaction between the various stakeholders in the agricultural sectors. This interaction will ensure that resources are better allocated to reduce duplication of research and dissemination activities. In addition, greater collaboration among the stakeholders will promote and strengthen the connection between research, policy and the application of research findings. The study further advocates that the government should follow a trade liberazation oriented approach to the agricultural sector as opposed to a trade tightening approach.
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References
African Development Bank, (2001). Kenya agricultural sector adjustment operation ii (ASAO II): Project performance evaluation report (PPER).
Alila. P.O., Atieno, R., (2006). Agricultural Policy in Kenya: Issues and Processes; A paper for the Future Agricultures Consortium workshop, Institute of Development Studies. University of Nairobi. Kenya.
Alston, J. M., (2002). Spillovers. The Australian Journal of Agricultural and Resource
Alston, J. M., Craig, B., and Pardey, P. G., (1998a). Dynamics in the Creation and Depreciation of Knowledge, and the Returns to Research. EPTD Discussion Paper No. 35. Washington, D.C., Environment and Production Technology Division, International
Alston, J. M., Marra, M. C., Pardey, P. G. and Wyatt, T. J., (2000). Research Return Redux: A Meta-Analysis of the Returns to Agricultural R&D. Australian Journal of Agricultural and Resource Economics, 44, 185-215.
Alston, J. M., Norton, G. W., and Pardey, P. G., (1998b). Science Under Scarcity: Principles and Practices for Agricultural Research Evaluation and Priority Setting, Wallington, CABI Publishing.
Anandajayasekeram, D., Martella, S., and Rukuni, M., (1996). A training manual on R & D Evaluation and Impact Assessment of Investments in Agricultural and Natural Resources Research, SACCAR, Gaborone, Botswana, 1996.
APO,(2001). Measuring Total Factor Productivity: Survey Report, Tokyo, And Asian Productivity Organization.
ASCU,(2010). Agriculture Sector and Vision 2030. Retrieved fromhttp://www.ascu.go.ke/reform.cfmon 23rd July 2010.
Babu, S., (2000). Impact of policy research on resource allocation and food security: A case study of IFPRI's research in Bangladesh. IFPRI Impact Assessment Discussion Paper. Washington, D.C.: IFPRI.
Burdge, R.J., Vanclay, F., (1996). Social Impact Assessment: A contribution to the state of the art series, Impact Assessment, 14: 59-86. Countries, Washington D.C., Brookings Institution.
Denison, E. F. (1967) Why Growth Rates Differ: Postwar Experience in Nine Western
Economics, 46, 315-346.
Engle, R. F. & Granger, C. W. J. (1987) Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica, 55, 251-276.
Evenson, R. E. & Pray, C. E. (1991) Research and Productivity in Asian Agriculture, Ithaca, Cornell University Press.
Evenson, R. E. (1993) Research and Extension Impacts on Food Crop Production in Indonesia. Upland Agriculture in Asia: Proceeding of a Workshop Bogor, Indonesia.
Evenson, R. E. (2001) Economic Impacts of Agricultural Research and Extension. In Gardner, B. L. andRausser, G. C. (Eds.) Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628. Elsevier.
Fernandez-Cornejo, J., Shumway, C. R., (1997) .Research and Productivity in Mexican Agriculture. American Journal of Agricultural Economics 738-752.
Food Policy Research Institute.
Goldsmith, A. (1993). Institutional development in national agricultural research: Issues for impact assessment. Public Administration and Development, 13(3): 195-204.
Granger, C. W. J. Newbold, P., (1974). Spurious Regressions in Econometrics. Journal of Econometrics, 2, 111-120.
Griliches, Z. (1996). The Discovery of the Residual: A Historical Note. Journal of Economic Literature, 34, 1324-1330.
Griliches, Z., (1957). Hybrid Corn: An Exploration in the Economics of Technological Change. Econometrica, 25, 501-522.
Griliches, Z., (1979). Issues in Assessing the Contribution of Research and Development to Productivity Growth. The Bell Journal of Economics, 10, 92-116.
Hall, A. Djikman,J, (2009). Tacit Knowledge and Innovation Capacity: Evidence from the Indian Livestock Sector. UNU-MERIT Working Paper Series #2009-058, United Nations University-Maastricht Economic and social Research and training centre on Innovation and Technology: Maastricht, The Netherlands.
Horton, D. , J Borges-Andrade,J.,. (1999). Evaluation of agricultural research in Latin America. In Knowledge, Technology and Policy. Vol. 11, No. 4, pp.42-68.
Horton, D. , Mackay, R., (1998). Assessing the institutional impact of development cooperation: A case from agricultural R&D. ISNAR Discussion Paper No. 98-2. The Hague: ISNAR.
IAIA. (1998). Principles of Environmental Impact Assessment: Best Practice. International Association for Impact Assessment. URL: ttp://iaia.ext.nodak.edu/iaia/principles/
Jorgenson, D. W. (1995) Productivity Volume 2: International Comparisons of Economic.
Jorgenson, D. W. , Griliches, Z. (1967) The Explanation of Productivity Change. The Review of Economic Studies, 34, 249-283.
Jorgenson, D.W. (1988) "Productivity and Postwar U.S. Economic Growth," Journal of Economic Perspectives, 2 (4), 23-42.
Khan, M. H., A. H. Akbari (1986) Impact of Agricultural Research and Extension on Crop Productivity in Pakistan: A Production Function Approach. World Development 14:6.
Kirwa, K., (2006). Revitalizing Agriculture for Poverty Reduction and Economic Growth: A Presentation to the Consultative Group Meeting for Kenya. Ministry of agriculture. Government Press.
Knutson, S., Marlys,P., and Tweeten,G., (1979) Toward an Optimal Rate of Growth in Agricultural Production Research and Extension. American Journal of Agricultural Economics 71-76.
Mackay, R. S. Debela, S., (1998). ISNAR's achievements, impacts and constraints, 1991-1996. ISNAR Discussion Paper No. 98-3. The Hague: ISNAR.
Mackay, R., D. Horton, and S. Debela.(1998). Accounting for organizational results: An evaluation of the International Service for National Agricultural Research. ISNAR Discussion Paper No. 98-4. The Hague: ISNAR. D.C. October 25-29. Washington, D.C.: CGIAR Secretariat.
Makki, S. S., Thraen, C. S., and Tweeten, L. G., (1999) Returns to American Agricultural Research: Results from a Cointegration Model. Journal of Policy Modeling, 21, 185-211.
Muigai, S. (2005). Presentation of a more and better aid workshop on the logic of planning and resource allocation. KAPP report. Government printers.
Mwanda, C.O.(2008). Engineering Division, Ministry of Agriculture. A note on weed control in Machakos District,Kenya. Retrieved May 5, 2008, from http://atnesa.org.
Nagy, Joseph G. (1991) Returns from Agricultural Research and Extension in Wheat and Maize in Pakistan. In R. E. Evenson and C. E. Pray (eds.) Research and Productivity in Asian Agriculture. Ithaca and London: Cornell University Press.
Norton, George W., and Jeffry S. Davis, (1981) Evaluating Returns to Agricultural Research: A Review. American Journal of Agricultural Economics 685-699.
Odhiambo, W. Nyangito,H.O.,and Nzuma,J.(2004). Sources and determinants of agricultural growth and productivity in Kenya. KIPPRA Discussion Paper No. 34. Nairobi: Kenya Institute for Public Policy Research and Analysis.
Oehmke, J. and E. Crawford. (1996). The impact of agricultural technology in sub-Saharan Africa. Journal of African Economies 5(2):271-92.
Oguchi, N. (2004) Integrated Report. Total Factor Productivity Growth: Survey Report.
Omiti, J., M. Waithaka, and W. Mwangi. (1999). Situation of impact assessment of agricultural research in the ASARECA region. Paper prepared for the workshop on impact assessment of agricultural research in the East and Central Africa, Entebbe, Uganda, November 16-19,1999.
Omoto W,. (2003).Impact Assessment of Urban Agriculture Research and Development in Nairobi. Department of Research Development Nairobi Kenya.
Onjala, J.O. (2002). "Total factor productivity in Kenya: The links with trade policy." AERC Research Report 18, Nairobi.
Paarlberg, R.L. (1999).External impact assessment of IFPRI's 2020 Vision for food, agriculture, and the environment initiative. IFPRI Impact Assessment Discussion Paper 10. Washington, D.C.: IFPRI.
Pardey, P. G., Alston, J. M. and Piggot, R. R. (2006) Agricultural R&D in the Developing World: Too Little, Too Late?Washington, DC.
Pardey, P. L., and B. Craig (1989) Causal Relationships between Public Sector Agricultural Research Expenditures and Output. American Journal of Agricultural Economics 71 (February), 9-19.
Pray, C. E. , Fuglie, K., (2001) Private Investment in Agricultural Research and International Technology Transfer in Asia. Agricultural Economic Report No. (AER 805).
PWC Report, (2010): A brief overview of the agricultural sector in Kenya. Retrieved from http://www.pwc.com/ke/en/industries/agriculture.jhtml
Rosegrant, M.W. and R.E. Evenson (1995), "Total Factor Productivity and Sources of Long Term Growth in Indian Agriculture", Environment and Production Technology Discussion Paper No. 7, International Food Policy Research Institute, Washington.
Rosegrant, Mark W., and Robert E. Evenson (1993) Agricultural Productivity Growth in Pakistan and India: A Comparative Analysis. The Pakistan Development Review 32:4, 433-448.
Ruttan, V. W. (1987) Agricultural Research Policy and Development, Rome, Food and Agriculture Organization of the United Nations.
Ruttan, V. W. (2002) Productivity Growth in World Agriculture: Sources and Constraints.Journal of Economic Perspectives, 16, 161-184.
Ryan, J.G. Forthcoming. Assessing the impact of policy research and capacity building by IFPRI with Malawi. IFPRI Impact Assessment Discussion Paper. Washington, D.C.: IFPRI.
Schultz, T., W. (1953). The Economic Organization of Agriculture, New York, McGraw-Hill.
Shaxson, L. (1999). Indicating the Exit: Towards an Holistic Framework for Monitoring Agricultural Research. CIAT Poverty Workshop, San Jos, Costa Rica.
Solow, R. M. (1957) Technical Change and Aggregate Production Function. Review of Economics and Statistics, 39, 312-320.
Thirtle, C., Bottomley, P., (1989), "The Rate of Return to Public Sector Expenditures R & Din the UK, 1965-80. Applied Economics, No. 21, Pp. 1063-1086.
Washington, D.C., Economic Research Service of the U.S. Department of Agriculture
World Bank Report (2010). Kenya Agricultural Policy Review: Current Trends and Future Options for Pro-poor Agricultural Growth. Agriculture and Rural Development Unit. Sustainable Development Department. Africa Region
African Development Bank, (2001). Kenya agricultural sector adjustment operation ii (ASAO II): Project performance evaluation report (PPER).
Alila. P.O., Atieno, R., (2006). Agricultural Policy in Kenya: Issues and Processes; A paper for the Future Agricultures Consortium workshop, Institute of Development Studies. University of Nairobi. Kenya.
Alston, J. M., (2002). Spillovers. The Australian Journal of Agricultural and Resource
Alston, J. M., Craig, B., and Pardey, P. G., (1998a). Dynamics in the Creation and Depreciation of Knowledge, and the Returns to Research. EPTD Discussion Paper No. 35. Washington, D.C., Environment and Production Technology Division, International
Alston, J. M., Marra, M. C., Pardey, P. G. and Wyatt, T. J., (2000). Research Return Redux: A Meta-Analysis of the Returns to Agricultural R&D. Australian Journal of Agricultural and Resource Economics, 44, 185-215.
Alston, J. M., Norton, G. W., and Pardey, P. G., (1998b). Science Under Scarcity: Principles and Practices for Agricultural Research Evaluation and Priority Setting, Wallington, CABI Publishing.
Anandajayasekeram, D., Martella, S., and Rukuni, M., (1996). A training manual on R & D Evaluation and Impact Assessment of Investments in Agricultural and Natural Resources Research, SACCAR, Gaborone, Botswana, 1996.
APO,(2001). Measuring Total Factor Productivity: Survey Report, Tokyo, And Asian Productivity Organization.
ASCU,(2010). Agriculture Sector and Vision 2030. Retrieved fromhttp://www.ascu.go.ke/reform.cfmon 23rd July 2010.
Babu, S., (2000). Impact of policy research on resource allocation and food security: A case study of IFPRI's research in Bangladesh. IFPRI Impact Assessment Discussion Paper. Washington, D.C.: IFPRI.
Burdge, R.J., Vanclay, F., (1996). Social Impact Assessment: A contribution to the state of the art series, Impact Assessment, 14: 59-86. Countries, Washington D.C., Brookings Institution.
Denison, E. F. (1967) Why Growth Rates Differ: Postwar Experience in Nine Western
Economics, 46, 315-346.
Engle, R. F. & Granger, C. W. J. (1987) Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica, 55, 251-276.
Evenson, R. E. & Pray, C. E. (1991) Research and Productivity in Asian Agriculture, Ithaca, Cornell University Press.
Evenson, R. E. (1993) Research and Extension Impacts on Food Crop Production in Indonesia. Upland Agriculture in Asia: Proceeding of a Workshop Bogor, Indonesia.
Evenson, R. E. (2001) Economic Impacts of Agricultural Research and Extension. In Gardner, B. L. andRausser, G. C. (Eds.) Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628. Elsevier.
Fernandez-Cornejo, J., Shumway, C. R., (1997) .Research and Productivity in Mexican Agriculture. American Journal of Agricultural Economics 738-752.
Food Policy Research Institute.
Goldsmith, A. (1993). Institutional development in national agricultural research: Issues for impact assessment. Public Administration and Development, 13(3): 195-204.
Granger, C. W. J. Newbold, P., (1974). Spurious Regressions in Econometrics. Journal of Econometrics, 2, 111-120.
Griliches, Z. (1996). The Discovery of the Residual: A Historical Note. Journal of Economic Literature, 34, 1324-1330.
Griliches, Z., (1957). Hybrid Corn: An Exploration in the Economics of Technological Change. Econometrica, 25, 501-522.
Griliches, Z., (1979). Issues in Assessing the Contribution of Research and Development to Productivity Growth. The Bell Journal of Economics, 10, 92-116.
Hall, A. Djikman,J, (2009). Tacit Knowledge and Innovation Capacity: Evidence from the Indian Livestock Sector. UNU-MERIT Working Paper Series #2009-058, United Nations University-Maastricht Economic and social Research and training centre on Innovation and Technology: Maastricht, The Netherlands.
Horton, D. , J Borges-Andrade,J.,. (1999). Evaluation of agricultural research in Latin America. In Knowledge, Technology and Policy. Vol. 11, No. 4, pp.42-68.
Horton, D. , Mackay, R., (1998). Assessing the institutional impact of development cooperation: A case from agricultural R&D. ISNAR Discussion Paper No. 98-2. The Hague: ISNAR.
IAIA. (1998). Principles of Environmental Impact Assessment: Best Practice. International Association for Impact Assessment. URL: ttp://iaia.ext.nodak.edu/iaia/principles/
Jorgenson, D. W. (1995) Productivity Volume 2: International Comparisons of Economic.
Jorgenson, D. W. , Griliches, Z. (1967) The Explanation of Productivity Change. The Review of Economic Studies, 34, 249-283.
Jorgenson, D.W. (1988) "Productivity and Postwar U.S. Economic Growth," Journal of Economic Perspectives, 2 (4), 23-42.
Khan, M. H., A. H. Akbari (1986) Impact of Agricultural Research and Extension on Crop Productivity in Pakistan: A Production Function Approach. World Development 14:6.
Kirwa, K., (2006). Revitalizing Agriculture for Poverty Reduction and Economic Growth: A Presentation to the Consultative Group Meeting for Kenya. Ministry of agriculture. Government Press.
Knutson, S., Marlys,P., and Tweeten,G., (1979) Toward an Optimal Rate of Growth in Agricultural Production Research and Extension. American Journal of Agricultural Economics 71-76.
Mackay, R. S. Debela, S., (1998). ISNAR's achievements, impacts and constraints, 1991-1996. ISNAR Discussion Paper No. 98-3. The Hague: ISNAR.
Mackay, R., D. Horton, and S. Debela.(1998). Accounting for organizational results: An evaluation of the International Service for National Agricultural Research. ISNAR Discussion Paper No. 98-4. The Hague: ISNAR. D.C. October 25-29. Washington, D.C.: CGIAR Secretariat.
Makki, S. S., Thraen, C. S., and Tweeten, L. G., (1999) Returns to American Agricultural Research: Results from a Cointegration Model. Journal of Policy Modeling, 21, 185-211.
Muigai, S. (2005). Presentation of a more and better aid workshop on the logic of planning and resource allocation. KAPP report. Government printers.
Mwanda, C.O.(2008). Engineering Division, Ministry of Agriculture. A note on weed control in Machakos District,Kenya. Retrieved May 5, 2008, from http://atnesa.org.
Nagy, Joseph G. (1991) Returns from Agricultural Research and Extension in Wheat and Maize in Pakistan. In R. E. Evenson and C. E. Pray (eds.) Research and Productivity in Asian Agriculture. Ithaca and London: Cornell University Press.
Norton, George W., and Jeffry S. Davis, (1981) Evaluating Returns to Agricultural Research: A Review. American Journal of Agricultural Economics 685-699.
Odhiambo, W. Nyangito,H.O.,and Nzuma,J.(2004). Sources and determinants of agricultural growth and productivity in Kenya. KIPPRA Discussion Paper No. 34. Nairobi: Kenya Institute for Public Policy Research and Analysis.
Oehmke, J. and E. Crawford. (1996). The impact of agricultural technology in sub-Saharan Africa. Journal of African Economies 5(2):271-92.
Oguchi, N. (2004) Integrated Report. Total Factor Productivity Growth: Survey Report.
Omiti, J., M. Waithaka, and W. Mwangi. (1999). Situation of impact assessment of agricultural research in the ASARECA region. Paper prepared for the workshop on impact assessment of agricultural research in the East and Central Africa, Entebbe, Uganda, November 16-19,1999.
Omoto W,. (2003).Impact Assessment of Urban Agriculture Research and Development in Nairobi. Department of Research Development Nairobi Kenya.
Onjala, J.O. (2002). "Total factor productivity in Kenya: The links with trade policy." AERC Research Report 18, Nairobi.
Paarlberg, R.L. (1999).External impact assessment of IFPRI's 2020 Vision for food, agriculture, and the environment initiative. IFPRI Impact Assessment Discussion Paper 10. Washington, D.C.: IFPRI.
Pardey, P. G., Alston, J. M. and Piggot, R. R. (2006) Agricultural R&D in the Developing World: Too Little, Too Late?Washington, DC.
Pardey, P. L., and B. Craig (1989) Causal Relationships between Public Sector Agricultural Research Expenditures and Output. American Journal of Agricultural Economics 71 (February), 9-19.
Pray, C. E. , Fuglie, K., (2001) Private Investment in Agricultural Research and International Technology Transfer in Asia. Agricultural Economic Report No. (AER 805).
PWC Report, (2010): A brief overview of the agricultural sector in Kenya. Retrieved from http://www.pwc.com/ke/en/industries/agriculture.jhtml
Rosegrant, M.W. and R.E. Evenson (1995), "Total Factor Productivity and Sources of Long Term Growth in Indian Agriculture", Environment and Production Technology Discussion Paper No. 7, International Food Policy Research Institute, Washington.
Rosegrant, Mark W., and Robert E. Evenson (1993) Agricultural Productivity Growth in Pakistan and India: A Comparative Analysis. The Pakistan Development Review 32:4, 433-448.
Ruttan, V. W. (1987) Agricultural Research Policy and Development, Rome, Food and Agriculture Organization of the United Nations.
Ruttan, V. W. (2002) Productivity Growth in World Agriculture: Sources and Constraints.Journal of Economic Perspectives, 16, 161-184.
Ryan, J.G. Forthcoming. Assessing the impact of policy research and capacity building by IFPRI with Malawi. IFPRI Impact Assessment Discussion Paper. Washington, D.C.: IFPRI.
Schultz, T., W. (1953). The Economic Organization of Agriculture, New York, McGraw-Hill.
Shaxson, L. (1999). Indicating the Exit: Towards an Holistic Framework for Monitoring Agricultural Research. CIAT Poverty Workshop, San Jos, Costa Rica.
Solow, R. M. (1957) Technical Change and Aggregate Production Function. Review of Economics and Statistics, 39, 312-320.
Thirtle, C., Bottomley, P., (1989), "The Rate of Return to Public Sector Expenditures R & Din the UK, 1965-80. Applied Economics, No. 21, Pp. 1063-1086.
Washington, D.C., Economic Research Service of the U.S. Department of Agriculture
World Bank Report (2010). Kenya Agricultural Policy Review: Current Trends and Future Options for Pro-poor Agricultural Growth. Agriculture and Rural Development Unit. Sustainable Development Department. Africa Region
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Copyright (c) 2017 John Githii Kimani, Dr. George Ruigu Ruigu
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