Kenya: Systematic analysis of domestic production and world market shocks

This study explores Kenya’s vulnerability to economic shocks and identifies those contributing most to economic uncertainty. The Kenyan Computable General Equilibrium (CGE) model was employed to simulate a range of po-tential economic outcomes under various sampled shock scenarios developed using hi...

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Autores principales: Mukashov, Askar, Mbuthia, Juneweenex, Omune, Lensa, Jones, Eleanor, Thurlow, James
Formato: Brief
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2024
Materias:
Acceso en línea:https://hdl.handle.net/10568/168180
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author Mukashov, Askar
Mbuthia, Juneweenex
Omune, Lensa
Jones, Eleanor
Thurlow, James
author_browse Jones, Eleanor
Mbuthia, Juneweenex
Mukashov, Askar
Omune, Lensa
Thurlow, James
author_facet Mukashov, Askar
Mbuthia, Juneweenex
Omune, Lensa
Jones, Eleanor
Thurlow, James
author_sort Mukashov, Askar
collection Repository of Agricultural Research Outputs (CGSpace)
description This study explores Kenya’s vulnerability to economic shocks and identifies those contributing most to economic uncertainty. The Kenyan Computable General Equilibrium (CGE) model was employed to simulate a range of po-tential economic outcomes under various sampled shock scenarios developed using historical data to capture do-mestic agricultural yield volatilities and world market prices uncertainty for traded goods. Data mining and machine learning methods were applied to quantify the contribution of each shock to the uncertainty of economic outcomes (gross domestic product [GDP], private consumption, poverty, and undernourishment). Key findings suggest that domestic yield volatility is the key risk factor for GDP, urban consumption and poverty, while external risks, partic-ularly world beverage crop prices, are more significant for rural consumption and poverty. As the majority of those below the poverty line are rural farmers, world beverage price volatility is the top risk for national poverty levels. Finally, for undernourishment outcomes, domestic cereal yield volatility is the dominant risk factor for all household types. Understanding how possible shocks would impact various segments of the Kenyan economy and population is a critical first step in facilitating discussions on relevant risk mitigation strategies, such as increasing average crop yields, adopting technologies and practices that narrow yield uncertainties, or diversifying production away from risky crops and sectors.
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publishDate 2024
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spelling CGSpace1681802025-11-06T04:33:45Z Kenya: Systematic analysis of domestic production and world market shocks Mukashov, Askar Mbuthia, Juneweenex Omune, Lensa Jones, Eleanor Thurlow, James climate shock market prices computable general equilibrium models agriculture crop yield poverty nutrition machine learning risk assessment This study explores Kenya’s vulnerability to economic shocks and identifies those contributing most to economic uncertainty. The Kenyan Computable General Equilibrium (CGE) model was employed to simulate a range of po-tential economic outcomes under various sampled shock scenarios developed using historical data to capture do-mestic agricultural yield volatilities and world market prices uncertainty for traded goods. Data mining and machine learning methods were applied to quantify the contribution of each shock to the uncertainty of economic outcomes (gross domestic product [GDP], private consumption, poverty, and undernourishment). Key findings suggest that domestic yield volatility is the key risk factor for GDP, urban consumption and poverty, while external risks, partic-ularly world beverage crop prices, are more significant for rural consumption and poverty. As the majority of those below the poverty line are rural farmers, world beverage price volatility is the top risk for national poverty levels. Finally, for undernourishment outcomes, domestic cereal yield volatility is the dominant risk factor for all household types. Understanding how possible shocks would impact various segments of the Kenyan economy and population is a critical first step in facilitating discussions on relevant risk mitigation strategies, such as increasing average crop yields, adopting technologies and practices that narrow yield uncertainties, or diversifying production away from risky crops and sectors. 2024-12-20 2024-12-20T19:08:14Z 2024-12-20T19:08:14Z Brief https://hdl.handle.net/10568/168180 en https://hdl.handle.net/10568/158180 Open Access application/pdf International Food Policy Research Institute Mukashov, Askar; Mbuthia, Juneweenex; Omune, Lensa; Jones, Eleanor; and Thurlow, James. 2024. Kenya: Systematic analysis of domestic production and world market shocks. Economywide Risk Assessment Country Brief 2. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/168180
spellingShingle climate
shock
market prices
computable general equilibrium models
agriculture
crop yield
poverty
nutrition
machine learning
risk assessment
Mukashov, Askar
Mbuthia, Juneweenex
Omune, Lensa
Jones, Eleanor
Thurlow, James
Kenya: Systematic analysis of domestic production and world market shocks
title Kenya: Systematic analysis of domestic production and world market shocks
title_full Kenya: Systematic analysis of domestic production and world market shocks
title_fullStr Kenya: Systematic analysis of domestic production and world market shocks
title_full_unstemmed Kenya: Systematic analysis of domestic production and world market shocks
title_short Kenya: Systematic analysis of domestic production and world market shocks
title_sort kenya systematic analysis of domestic production and world market shocks
topic climate
shock
market prices
computable general equilibrium models
agriculture
crop yield
poverty
nutrition
machine learning
risk assessment
url https://hdl.handle.net/10568/168180
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