Influence of Market Volatility on Livestock Price Fluctuations: A Time-Series Examination in Kenya
DOI:
https://doi.org/10.47672/ajlp.1951Keywords:
Market, Volatility, Livestock, Price FluctuationsAbstract
Purpose: The aim of the study was to assess the influence of market volatility on livestock price fluctuations, a time-series examination in Kenya.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: The study conducted a comprehensive time-series analysis to assess the relationship between these variables. The findings revealed a significant correlation between market volatility and fluctuations in livestock prices. Specifically, during periods of heightened volatility in the market, such as economic downturns or geopolitical tensions, livestock prices tended to experience more pronounced fluctuations. Factors such as supply and demand dynamics, government policies, and global economic conditions were identified as key drivers of market volatility affecting livestock prices.
Implications to Theory, Practice and Policy: Efficient market hypothesis, random walk theory and behavioral finance theory may be used to anchor future studies on assessing the influence of market volatility on livestock price fluctuations, a time-series examination in Kenya. In practice, livestock producers and market participants can benefit from the insights gained through time-series analysis of market volatility and price fluctuations. Policymakers play a crucial role in mitigating the adverse effects of market volatility on livestock producers and ensuring market stability.
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