Market Reforms Effects on Price Volatility

In the early 1990’s, most developing countries implemented reforms in the agricultural sector that affected the volatility of product prices. However, there is limited empirical evidence on the effects of these reforms on the level and volatility of Irish potato prices. This book evaluates the effects of market reform policies on the evolution and volatility of Irish potato prices in Kenya. By using an autoregressive conditional heteroscedasticity in mean model, a monthly time series data set was utilized to identify the effects of the market reforms on the volatility of Irish potato prices. The results of the analysis indicate that the implementation of market reform policies led to higher prices and reduction of price volatility. The book recommends the requisite measures to enable the farmers to realize maximum benefits from the effects of the implementation of market reform policies. Overall, this book sheds more light on the existing body of knowledge on the effects of market reforms and Irish potato marketing and is especially useful to researchers, farmers and policy makers.

Samuel C. Mwangi, MSc: Studied Agricultural and Applied Economics at the University of Nairobi, Kenya. BSc: Studied Agriculture at the University of Nairobi. Currently he is undertaking a PhD course in Agricultural Economics at the University of Nairobi. Policy Analyst at Ministry of Agriculture, Livestock and Fisheries Headquarters in Nairobi.