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The Future of Smallholder Farming in Eastern Africa - Uganda ...

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Table 6b--Unit root tests for price series <strong>in</strong> the postliberalization era<br />

Market p Criterion ADF test<br />

statistic<br />

Null hypothesis (unit<br />

root present)<br />

Kiritiri (no trend) 1 AIC, HQC -3.434 Reject<br />

Kiritiri (with trend) 0 SBC, HQC -3.682 Reject<br />

Siakago (no trend) 0 AIC, SBC, HQC -1.973 Cannot reject<br />

Siakago (with trend) 0 AIC, SBC, HQC -2.387 Cannot reject<br />

Kitale (no trend) 2 AIC, HQC -2.838 Cannot reject<br />

Kitale (with trend) 2 AIC, SBC, HQC -3.142 Cannot reject<br />

Nairobi (no trend) 2 AIC, HQC -2.115 Cannot reject<br />

Nairobi (with trend) 2 AIC, HQC -2.400 Cannot reject<br />

Migori (no trend) 0 AIC, SBC, HQC -2.153 Cannot reject<br />

Migori (with trend) 0 AIC, SBC, HQC -2.426 Cannot reject<br />

Awendo (no trend) 0 AIC, SBC, HQC -1.590 Cannot reject<br />

Awendo (with trend) 0 AIC, SBC, HQC -1.845 Cannot reject<br />

95% critical value for the ADF statistic (no trend) -2.902<br />

95% critical value for the ADF statistic (with -3.472<br />

trend)<br />

Source: Authors’ survey, 2001.<br />

Table 7a--Unit root tests for first differences <strong>of</strong> prices <strong>in</strong> the preliberalization era<br />

Market p Criterion ADF test<br />

statistic<br />

Null hypothesis (unit<br />

root present)<br />

Kiritiri (no trend) 0 AIC, SBC, HQC -4.652 Reject<br />

Kiritiri (with trend) 0 AIC, SBC, HQC -4.566 Reject<br />

Siakago (no trend) 0 AIC, SBC, HQC -4.255 Reject<br />

Siakago (with trend) 0 AIC, SBC, HQC -4.187 Reject<br />

Kitale (no trend) 0 AIC, SBC, HQC -4.198 Reject<br />

Kitale (with trend) 0 AIC, SBC, HQC -4.163 Reject<br />

Nairobi (no trend) 0 AIC, SBC, HQC -2.317 Cannot reject<br />

Nairobi (with trend) 1 AIC, SBC, HQC -2.164 Cannot reject<br />

Migori (no trend) 0 AIC, SBC, HQC -3.803 Reject<br />

Migori (with trend) 0 AIC, SBC, HQC -3.777 Reject<br />

Awendo (no trend) 0 AIC, SBC, HQC -4.476 Reject<br />

Awendo (with trend) 0 AIC, SBC, HQC -4.314 Reject<br />

95% critical value for the ADF statistic (no trend) -3.004<br />

95% critical value for the ADF statistic (with trend) -3.633<br />

Source: Authors’ survey, 2001.

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