February 10, 2018

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Thus, Eldoret is one of the largest maize surplus markets in the country. 2, therefore, we can clearly see that the monthly price at Eldoret tends to be lower than the monthly price at Nairobi. We also notice a seasonal pattern in the figure: the gap tends to be large during the period from October to January, which follows the maize harvest season in Rift Valley. 3, we compare the monthly maize prices at Kisumu in Kenya and Kampala in Uganda. We can clearly see that the maize price is higher in Kisumu than in Kampala.

4% in 2003 and 2005, respectively. Therefore, while 32 T. Yamano and A. Arai Kenyan farmers who live close to Kisumu are receiving farm-gate maize prices that are about 3–19% lower than the Kisumu price, Ugandan farmers across the border are receiving farm-gate prices that are more than 40% below the same Kisumu price. Since Ugandan farmers are located far away from Kisumu, the difference in distance to Kisumu may explain much of the difference. In order to examine the price spreads across countries and regions, we need to control for the driving hours to the nearest maize market from each household.

These studies, however, only examine integration from the perspective of price correlation across markets. Even if markets are well integrated across space, local farmers would not benefit from market integration if their market access is poor. Previous studies find that many small-scale farmers remain at the subsistence level, not selling their crops at markets (Jayne et al. 2006; Barrett 2008). To examine how agricultural sectors, consisting of small-scale farmers, are integrated with local markets, we analyze the farm-market price spreads of maize in Kenya and Uganda.

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An Ethics for Corp Governance


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