Impacts of agricultural market liberalization on the food security of developing countries: a comparative study of Kenya and Zambia.

Time: 1.5.2008-31.6.2009, Partial Budget 8,000 euro

Literature on the interaction of agricultural market liberalization with the agricultural sector in Sub-Saharan Africa continues to be a subject of continuing research. Further research is essential in the agricultural sector not only for it primacy in economic growth and development, but also considering its importance in serving as a crucial source of food consumed domestically. Food insecurity is one multi-faceted issue relying on aggregate domestic production (net export proceeds) as well as on earned incomes from agriculture (or other endowments). It is also is firmly intertwined in the role of the agricultural sector in the overall economy. The public policy interest of furthering research with a focus on specific country understanding would underscore the role of policies in markets. The objectives of the study are1 1. To assess the impacts of market liberalization policies on the food security of Kenya and Zambia by studying the dynamic responses in both countries; 2.To study the ramifications of the introducing agricultural reform policies on agricultural markets. The research further investigates the differentiated impacts on food security in different countries through an assessment of those effects in Kenya and Zambia; 3. To study the interaction of input/output markets and their role on the food security through production and incomes. This study relies exclusively on secondary data; figures and statistics, already collected by national authorities. This research uses these statistics to model agricultural production; national output and overall consumption, collective synergic to food security. The research will utilize a dynamic time series depiction to analyze production outcomes by comparing the pre- and post-liberalization periods. An aggregate production assessment will be carried out during the referenced period with a view of measuring the contribution of the agricultural sector to export growth. The third approach models growth in domestic consumption. This tri-faceted approach best answers the overarching research question. This research innovates by conducting a comprehensive study of two countries; most literature developing countries collectively.

Researcher: Newton Nyairo

Supervisors: Jukka Kola and John Sumelius