The Editor: morajournal@narokuniversity.ac.

ke
Subtheme: Technology and Food security

The Role of Education in Household Food Security: The Case of Smallholder Tea Famers in
Nandi South District, Kenya
1
Langat, B.K., 2Chumba S. K., 1Ngéno V.K., 1Kipsat, M.J., 1Mwakubo, S.M.
1
Department of Agricultural Economics & Resource Management, 2Department of Education &
Policy Studies
Moi University, P.O Box, 1125, Eldoret, Kenya
langatben2002@yahoo.com

ABSTRACT

Despite being 68 percent arable and having a good climate, Nandi South is a maize deficit zone

(GoK, 2005). Population pressure coupled with unfavourable poverty indicators, has led to

competition for limited land resource and impacted negatively on food access in the district. Mostly

affected are the smallholder tea farmers who have continued to convert land to tea production at the

expense of food production. The main objective of this study was to investigate factors influencing

household food security among smallholder tea farmers in Nandi south district. The study focused on

smallholder tea farmers in Nandi South. A survey of 165 households was conducted using a multi-

stage cluster sampling and both questionnaires and interviews. A modified version of translog cost

function was used to model production constraints to household food security. Results showed

supply side constraints influencing household food security among smallholder tea households

include scale of food production, dependency ratio, education and food storage. It is recommended

that policies should be focused on improving scale of food production, education level, employment

and food storage facilities among the smallholder tea households in Nandi south district.

Key Words: Role of education, Food Security, Smallholder Tea Farmers, Nandi South, Kenya
Introduction
A guarantee of household food security requires adequate home production of food and/or adequate

economic and physical access to food. The concept of Food Security has evolved during the last three

decades to include not only food availability, but also economic access to food (Swaminathan, M. S.,

2000). Adequate per capita availability of food is a function of the balance between food production on

one hand, and growth in population and purchasing power, on the other. Underutilization, inefficient or

non-use of available resources and lack of maximum benefits from the available resources

significantly contribute to poor economic conditions in Africa (Rutto, 2008). Smallholder farming

based on low-input and traditional farming practices coupled with rapid population growth have

negatively impacted on agricultural production. The steady decline in production is further

exacerbated by socio-economic challenges inherent in smallholder farmer’s households. Globally, it

is estimated that more than 800 million illiterate people today are food insecure. Education is a

fundamental factor in achieving food security for rural populations in developing countries (Burchi,

2006).

There is a general consensus from research findings and among policy makers that the future of food

security and poverty eradication in Africa is dependent on commercialization of smallholder

agricultural production (Bouis and Haddad, 1990; Kennedy, 1988b; Kennedy and Cogill, 1987;

Braun, V., de Haen and Blanken, 1991; Braun, V., Hotchkiss and Immink, 1989; Immink and

Alarcón, 1992, Immink and Alarcon, 1993). However, after several decades of commercialization in

some parts of Africa, there seems to be no significant improvement in economic conditions and food

security among commercialized smallholder farmers (Immink and Alarcon, 1993).

Most smallholder farmers in Kenya planted tea due to high income it used to fetch, and they left no

room for food crops and other undertakings such as livestock production. The outcome is that the

miserable pay from the cash crop is making it hard for the farmers to put food on the table. With the

global tea industry facing a crisis, farmers in rural areas are unable to cope with the rising cost of
production. This has resulted in frustrations among smallholder tea farmers following a steady

decline in earnings. Since independence, estate smallholder land under tea production has

persistently increased from 21,448 hectares to 141, 316 hectares by 2005 (International Tea

Committee, 2006). Figure 1.1 below demonstrates the general trend that over the years smallholder

farmers have persistently converted more of their land into cash crop production denying food crop

production the scarce land resource.

Figure 1 Total hectares of Estate Smallholder tea Production in Kenya, 1963-2005

160000
140000
120000
TOTAL HECTARES

100000
80000
60000
40000
20000
0
1963

1979
1965
1967
1969
1971
1973
1975
1977

1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
YEAR

Data source: International Tea Committee, Annual Bulletin of Statistics, 2006

Smallholder tea farmers are fighting hard to survive, as the odds of harsh global economic times

continue to go against them. With sky rocketing production costs, weakening dollar, oversupply of

the commodity on the international market, and dwindling earnings, the future of the tea industry in

Kenya is gradually becoming bleak. Despite being 68 percent arable and having a good climate,

Nandi South is a maize deficit zone (GoK, 2005). Population pressure has led to competition for

limited land resource, and coupled with unfavourable poverty indicators impacted negatively on food

security in the district. While Maize production in 2005 was estimated at 43,767 metric tons

accounting for over 98 percent of the total cereals produced in the district (MOA, 2005), annual

demand for the same period was estimated at 96,823 metric tons (GOK, 2005).
Despite being 68 percent arable and having a good climate, Nandi South is a maize deficit zone

(GoK, 2005). Population pressure has led to competition for limited land resource, and coupled with

unfavourable poverty indicators impacted negatively on food security in the district. While Maize

production in 2005 was estimated at 43,767 metric tons accounting for over 98 percent of the total

cereals produced in the district (MOA, 2005), annual demand for the same period was estimated at

96,823 metric tons (GOK, 2005). This indicates that the district’s own production can only last for

five months resulting in imports from neighboring districts of Nandi North and Uasin Gishu.

Table 1.1 below indicates the trend in land size, output and corresponding demand and prices of

maize from 2005-2009 in Nandi South district

Table 1.1:
Trend in land Size, output and the corresponding demand and prices for maize from
2005-2009 in Nandi East district
Unit 2005 2006 2007 2008 2009
Total Land size Hectares 23,750 27,474 31,479 14,014 10,000
Maize Output 90 Kg Bag 456,000 812,390 755,496 424,920 250,000
Average Demand 132 Kg/capita 669,500 830,686 845,140 923,156 975,200
Average Price Ksh/2kg Tin 20 30 30 60 80
Source: DAO Nandi East, 2010

From Figure 1.1 land size allocated to maize production has been decreasing drastically, farmers

seem to shift from staple food production to cash crop. From the figure also maize production has

been declining at least for the past four years, hitting the lowest ever in the district in 2009. With the

increasing demand for maize coupled with rising maize prices in the market, household food access

is impacted negatively.

This paper examines the supply side socio-economic constraints to household food security among

smallholder tea farmers in Nandi south district. The paper is subdivided into four sections. Section

one, introduces the background to the problem. Section two contains the materials and methods used.

Section three presents results and discussions while section five gives the conclusions.
Materials and Methods

Selection and Specification of Empirical Production Model

The choice of a functional form to use is important in all empirical econometric studies. Economic

theory provides mainly generic conditions of specification with little guidance for specifying a

function to describe a particular production process (Hall, 1998). All functional forms implicitly

impose maintained hypotheses on the analysis. This is significant since the outcome of a specific

hypothesis test will depend on the validity of the hypothesis under examination and on the validity of

the maintained hypotheses used in the model (Fuss, et al. 1978).. However, if invalid maintained

hypotheses are imposed, later rejection in a specific hypothesis test may be a consequence of the

invalidity of the maintained hypotheses, rather than of the primary hypothesis that is being tested. It

is therefore useful to work with functional forms that embody few maintained hypotheses (Fuss, et

al. 1978).

The functional forms that may be chosen to model producer behavior include: Cobb-Douglas

((Strauss, 1986, Varian, 1987), CES (Arrow et al., 1961, Denny 1974), Leontief functions (Fuss,

1977, Hall, 1973) and Translog functions (Christiansen, Jorgenson, and Lau, 1971, 1973). Cob-

Douglas function is commonly used in modeling producer behavior. It is the simplest, but at the

same time, the most restrictive functional form. The maintained hypothesis of a model based on a

Cobb-Douglas production, cost, or profit function is that the elasticities of substitution between input

pairs are equal to unity for all input pairs over the entire input space. It is this property of Cobb-

Douglas functions, among others, that has led econometric modelers to seek more flexible forms

(Zaloshnja, 1997). Another simple but somewhat less restrictive function used in empirical studies is

the Constant Elasticity of Substitution (CES) function. This function is less restrictive than the Cobb-

Douglas because elasticities of substitution between input pairs, although they remain constant over

the entire input space; they are not constrained to equal one. On the other hand, while the Cobb-

Douglas is very convenient for econometric estimation, the CES function is difficult to estimate
because it is non-linear in parameters. The Leontief production function is easy to estimate since

only factor shares are needed to estimate the function, but limited input substitution restrict its

applicability.

Translog functional forms are of more recent vintage and belong to a class of flexible functional

forms (Zaloshnja, 1997). They are pliant enough to capture all the distinct economic effects (Hall,

1998). The translog production function and the translog cost function do not generally correspond to

the same technology, although they can be regarded as close approximations for the same

technology. Although it is impossible to provide an explicit solution to the underlying production

function mathematically (Christensen, et al 1973). The translog cost function has the advantage of

flexibility of specification and can be applied to multiproduct, multifactor production.

Thus, the Translog cost function is most useful in studies of factor demand and product supply.

Translog cost function is considered a second-order Taylor’s series approximation in logarithms to

an arbitrary cost function (Christiansen et al 1973, Banda, and Verdugo, 2007). A more general

specification of the translog cost function imposes no prior restriction on the production structure. It

does not impose neutrality, homotheticity, homogeneity, constant returns to scale, or unitary

elasticities of substitution; in effect it allow us to test these alternative production configurations.

The function is specified as:

1
ln 𝐶 = 𝛼0 + 𝛼𝑖 ln 𝑃𝑖 + 𝛾𝑖𝑗 ln 𝑃𝑖 ln 𝑃𝑗 + 𝛼𝑦 ln 𝑄
2
𝑖=1 𝑖=1 𝑗 =1

1
+ 𝛾𝑦𝑦 (ln 𝑄)2 + 𝛾𝑖𝑗 ln 𝑃𝑖 ln 𝑄, (1)
2
𝑖=1

Where 𝑖, 𝑗 = 1, … … . . , 𝑁 index of the N different inputs considered and 𝛾𝑖𝑗 = 𝛾𝑖𝑗 , 𝐶 is total cost, Q is

output and Pi’s are the prices of the factor inputs. A well behaved cost function must be

homogeneous of degree one in prices, meaning that, for fixed level of output, total cost must increase

proportionally when all prices increase proportionally Verdugo, L.E.B, 2007. Therefore, the

following restrictions on equation (3.25) above apply:

 𝛼𝑖 = 1, 𝛾𝑖𝑦 = 0, (2)
𝑖=1 𝑖=1

𝛾𝑖𝑗 = 𝛾𝑖𝑗 = 𝛾𝑖𝑗 = 0 (3)

𝑖=1 𝑗 =1 𝑖=1 𝑗 =1

Homotheticity means that the cost function can be written as a separable function of output and

factor prices (Truett et al, 1994, Banda H. S and Verdugo, L.E.B, 2007). For homotheticity,

therefore, it is necessary and sufficient that:

𝛾𝑖𝑦 = 0, ∀𝑖 (4)

If the elasticity of cost with respect to output is constant, then the cost function will be homogeneous

in output, giving the following restrictions:

𝛾𝑖𝑦 = 0, 𝛾𝑦𝑦 = 0, (5)

Following Shepard’s Lemma, the derived demand for an input is obtained by partially differentiating

the cost function with respect to input prices to obtain cost-share equations as follows:

𝜕 ln 𝐶 𝑃𝑖 𝜕𝐶 𝑃𝑖 𝑋𝑖
= = = 𝛼𝑖 + 𝛾𝑖𝑗 ln 𝑃𝑗 + 𝛾𝑖𝑗 ln 𝑄, (6)
𝜕ln𝑃𝑖 𝐶 𝜕𝑃𝑖 𝐶
𝑗 =𝑖
Where

𝑃𝑖 𝑋𝑖
𝑃𝑖 𝑋𝑖 = 𝐶. if 𝑆𝑖 ≡ , then 𝑆𝑖 = 1 (7)
𝐶
𝑖=1 𝑖=1

The necessary restrictions given by (3.25) and (3. 26) are imposed to the constraint

𝑆𝑖 = 1 (8)
𝑖=1

That implies that only N-1 of share equations in (3.31) is linearly independent.

From the estimated coefficients, we can construct partial elasticities of substitution between two

factors i and j (Uzawa, 1962). Elasticities will help to describe the pattern and degree of

substitutability and complementarity among factors of production for example the percentage change

in factor proportion due to a one-percent change in their relative prices is given by:
 𝛾𝑖𝑗
𝜎𝑖𝑗 = +1 for 𝑖 ≠ 𝑗 (9)
𝑆𝑖 𝑆𝑗

Following Nyangweso et al, (2007), the intercept of equation (3.30) is augmented in order to allow

for the influence of household composition, factors of production and environmental factors. The

model is modified by replacing input cost shares 𝑆𝑖 by months of adequate household food

provisioning (MAHFP) reflecting household food availability. The indicator has the advantage of

capturing the combined effects of improved agricultural production, storage, and the household’s

purchasing power on food security (Bilinsky, and Swindale, 2007).

𝑴𝑨𝑯𝑭𝑷 = 𝛼𝑖 + 𝛾𝑖𝑗 ln 𝑷𝑗 + 𝛾𝑖𝑗 ln 𝑸 + 𝝓𝑿𝑖𝑗 + 𝜺 (10)

𝑗 =𝑖

Where

𝑷 ≡ Input prices

𝑸 ≡ Household maize output

X≡ Farm household characteristics, factors of production and environmental factors; these include:

X1 Dependency ratio, the ratio of the total number of children and adults not working to

that of working adults in the household.

X2 Gender; Gender of household head: Male =1, Female =0

X3 Education; Pre-primary/Primary=1, Secondary/vocational training=2, Post-secondary-

collage/university=3

X4 Land size on maize; acres of land allocated to maize.

X5 Ratio of land on tea: ration of acres of land allocated to tea to that allocated to

food crops.

X6 Geographical location, the location of the household in the district: If household is from

Kaptien cluster =1, from Kosoiywo cluster =2, from Siret cluster=3, from Kaplelmet cluster

= 4, from Kapsimotwo cluster =5

X7 Food store: ―1‖ if household owns a food store with stock of food, ―0‖ otherwise
X8 Credit access; ―1‖ if a member of a cooperative society, ―0‖ otherwise.

𝜶, 𝜸, 𝝓 are the parameters to be estimated, while 𝜀 is the error term. During one survey period, input

prices tend to be relatively constant. The following model was estimated.

𝑴𝑨𝑯𝑭𝑷 = 𝛼 + 𝛾 ln 𝑸 + 𝜙𝑿 + 𝜀 (11)

Methodologies

All smallholder tea farm households in Nandi South District were targeted. A multi-stage

proportional-to-size cluster sampling involving four (4) stages was used. Smallholder tea households

owning less than 10 acres of land on tea production were surveyed. Both primary and secondary data

was used. Primary data was collected through a household survey. Household characteristics data

included age, gender, employment, and education level of head of household and household size.

The total arable land owned by each household in acres and the effective area allocated to produce

tea, maize, and other crops, and their respective yields in Kilograms, and Metric tons. Input

quantities in Kilograms and prices in Kenyan Shillings of the respective enterprises. Quantities of

input use in production included labour; both family and hired labour, fertilizer, seeds, pesticides and

weeding and ploughing costs. Data on other off-farm and on-farm income generating activities was

also collected from the households. Savings, access to credit facilities, and cooperative membership

of the household head. Geographical location and distance to the nearest market in Kilometers. The

secondary data was obtained by perusing annual agricultural reports, economic surveys, statistical

abstracts and development plans. Both interviews and questionnaires were used as instruments for

data collection. Interviews were used to supplement the questionnaires. Household surveys were

administered using the questionnaires while interviews were used on key informants in the district.

To validate survey instruments, 10 questionnaires were pre-tested on some household respondents

and key informants in the division. The instrument was then reviewed and corrected as necessary.

Five enumerators were recruited and trained to assist in administering the questionnaires on

households. The survey questions were numerically coded and responses stored in computer
spreadsheet software, Microsoft Excel Version 2007. Descriptive statistics such as bar charts,

histograms and measures of central tendency were used to describe existing relationships between

household variables. Multiple regression analysis was used to estimate factors influencing household

food security among smallholder tea farmers in Nandi South District Kenya from the survey data

using Statistical Package for Social Sciences (SPSS) version 16.0 software. Before the analysis, key

econometric assumptions were considered and tested as necessary.

Results and Discussions

Table 1 shows Education distribution across the sampled households in the district.
Table 2 : Education distribution across households
Frequency Percent
PRE-PRI/PRIMARY 84 51.2
SECONDARY/VOCATIONAL 48 29.3
COLLEGE/UNIVERSITY 32 19.5
Total 164 100.0
Source: Author’s Survey Data, 2009
Results (table 2) show that about 51.2 percent of respondents had pre-primary/ primary education,

29.3 percent had vocational/secondary training while 19.5 percent had college/university level of

education. The results indicate that majority of the household heads in Nandi South have basic level

of education. Those with post secondary education would be expected to engage in off-farm

employment with extra and regular sources of income cushioning households from food insecurity.

Therefore food security of households whose main source of income is farming is dependent on

resources they command. Figure Error! No text of specified style in document.: Show the

knowledge of balance diet across the households.

Figure 2: Knowledge on Balance Diet across the Households

Source: Author’s Survey Data, 2009

Results show that he persons responsible for food preparation in the sample indicate that 73 percent

of the respondents are knowledgeable of balanced diet with only 27 percent not having basic

knowledge of what a balanced diet is. The implication is that food security programs should focus on

improving the household purchasing power rather than knowledge base on nutrition.

To estimate production side constraints, months of adequate household food provisioning index

(MAHP) was used as a modification of the dependent variable of translog cost function. Months of

adequate household food provisioning (MAHFP) indicator is used as a proxy indicator to measure

household food availability throughout the year. Results for production side constraints are presented

in Table 3.

Table 3: The estimated parameters of production side constraints

B Std. Error t R R2 F-Value

(Constant) 3.030966 (1.655905) 1.830 0.616 0.380 10.339***
FOOD OUTPUT 0.613380 (0.259344)** 2.365
RATIO OF DEPENDENTS -0.273071 (0.116831)** -2.337
GENDER 0.371234 (0.473781) 0.784
EDUCATION 0.752274 (0.190483)*** 3.949
LAND SIZE ON MAIZE 0.097368 (0.238134) 0.409
GEOGRAPHICAL LOCATION 0.184236 (0.110785) 1.663
RATIO OF LAND UNDER TEA -0.055549 (0.148213) -0.375
FOOD STORE 1.487280 (0.378542)*** 3.929
ACESS TO CREDIT 0.701025 (0.496118) 1.413
**Denotes significance at 5 percent level
*** Denotes significance at 1 percent level
Source: Author’s Survey Data, 2009
Results (Table 3) indicate that scale of food production, dependency ratio, education and food store

significantly influenced household food security among smallholder tea households. Gender, land

size, geographical location, ratio of land under tea production and access to credit did not have

significant influence on household food security. All the variables, however, had the expected signs.

We reject the hypothesis that socioeconomic factors do not significantly influence household food

security among small holder tea farmers in Nandi South.

It is plausible that the scale of food production since an increase in the scale of food production

ensures sufficient supply of food over a longer period of time. Dependency ratio had a negative and

significant influence on household food provisioning. As expected, increased number of dependence

imply low household labour supply and consequently low food output. Dependency ratio implies that

household food demand is higher compared to those responsible for supply of the same.

Education level of the head of head of household significantly influenced the household food

provisioning with expected positive sign (Table 2). This imply that households with highly educated

heads of households are not likely to experience food insecurity compared to those households

whose heads are less educated. With better education heads of households can make better decisions

and they are likely to be competent, efficient in resource allocation and adaptive to modern

technology. Consequently they realize more output from both food and cash crops resulting in better

food provisioning. Besides, educated heads of households are likely to be employed with steady off-

farm income. Increased income affords households to purchase enough and quality inputs used in

food production and purchase of enough food throughout the year.

Food store also had a positive and significant influence on household food provisioning. This implies

that households who own food stores with food stock guarantee consistent supply of food throughout

the year. Gender, land size and access to credit were not significant but with expected signs.

Results and Recommendations

Food security was singled out as the most important goal among the eight Millennium Development

Goals (MDGs). However hunger targets have been noted to be the worst performing of all the MDGs

(UN, 2009). Education level of the resource constrained farmers is one of the reasons why

millennium development goals will not be attained by the year 2015. Supply side constraints

influencing household food security among smallholder tea households included scale of food

production, dependency ratio, education and food storage.

Farmers’ education plays a central role in food security. Therefore, government should promote

informal adult education among the resource constraint famers. Current formal education facilities in

the district should be improved also. Ministry of agriculture should complement this with intensive

and effective extension education program. The ratio of extension personnel to that of famers should

be increased by government. It is also recommended that farmers be taught how to utilize the

available resources in order to improve household food security.

Acknowledgement

I would like to thank Dr. Sulo, Mr. Nyangweso, Mark Korir, Vincent Ngéno and Dr. Kipsat and

other colleagues for their tireless support in writing this paper. I also appreciate Moi University

administration for supporting this research.

References
Arrow, Kenneth J., Hurwicz, L. and Uzawa, H., (1961), "Constraint qualifications in

maximization problems." Naval Research Logistics Quarterly, 8, 175–191.

Banda, H. S. and Verdugo, L.E.B., (2007)"Translog Cost Functions: An Application for

Mexican Manufacturing," Working Papers 2007-08: Banco de México.

Bilinsky. P, Anne Swindale, (2007) Months of Adequate Household Food Provisioning

(MAHFP) for Measurement of Household Food Access: Indicator Guide.

Bouis, H. & Haddad, L.J. (1990) Effects of agricultural commercialization on land tenure,

household resource allocation and nutrition in the Philippines, Research Report No.79,

Washington DC: IFPRI.

Braun, V. J., Hotchkiss, D. & Immink, M. (1989) Nontraditional export crops in

Guatemala: effects on production, income and nutrition. Research Report No. 73.

Washington, D.C., International Food Policy Research Institute.

Braun, V. J., de Haen, H. & Blanken, J., (1991) Commercialization of agriculture under

population pressure; effects on production, consumption, and nutrition in Rwanda, Research

Report No. 85, Washington, D.C., International Food Policy Research Institute.

Burchi, F., (2006) Identifying the Role of Education in Socio-Economic Development in:

Proceedings of the Conference on Human and Economic Resources, IUE-SUNY Cortland

Conference in Economics, Izmir University of Economics.

Christiansen, L.R., Jorgenson D.W, and L.J. Lau (1973) ―Transcendental Logarithmic

production Frontiers‖ Review of Economics and Statistics 55(1): 25-45.

Denny, M., (1974) "The Relationship Between Functional Forms for the Production System,"

Canadian Journal of Economics, Canadian Economics Association, vol. 7(1), pages 21-31,

February.

Fuss, M., McFadden, D. and Mundalk, Y. (1978) "A Survey of Functional Forms in the
Economic Analysis of Production".
GoK (2005) Nandi District Development Plan for 2002-2008-Kenya’s International Trade,
Facts and figures 2004/2006.
Hall H. H., (1998) Choosing an Empirical Production Function: Theory, Nonnested

Hypotheses, Costs of Specifications, Agricultural Economics Research Report No. 59.

Immink, M.D.C. & Alarcón, J.A. (1992) Household income, food availability, and

commercial crop production by smallholder farmers in the western highlands of Guatemala.

Econ. Dev. Cult. Change. (In press.).

Immink, M.D.C. & Alarcón, J.A. (1993) Household Income, Food Availability and

Commercial Crop Production by Smallholder Farmers in the Western Highlands of

Guatamala. University of Chicago.

Kennedy, E.T., (1988a) Country case studies: Agricultural commercialization: Food

consumption effects in Kenya, Food Policy Volume 13, Issue 1, Pages 104-105,

International Food Policy Research Institute Washington, DC, USA.

Kennedy, E.T. & Cogill, B., (1987) Income and nutritional effects of the commercialization of

agriculture in southwestern Kenya, Research Report No, 63, Washington, D.C.,

International Food Policy Research Institute.

Nyangweswo, et al., (2007) Household Food Security in a Subsistence Economy:

Application of Translog Cost Function to Cross-sectional data in Vihiga District, Kenya.

AAAE Conference Proceedings 607-615.

Rutto W., (2008) Commercialization of Smallholder Production: Key to Food Security, The

African Executive (21-28 May 2008).

Strauss, J., (1986) ―Appendix: The Theory and Comparative Statics of Agricultural Household

Models: A General Approach.‖ In Inderjit J. Singh, Lyn Squire and John Strauss (eds.),

Agricultural Household Models—Extensions, Applications and Policy, Baltimore: The

Johns Hopkins University Press.

Swaminathan, M. S, (2000) Global Food Security for Tomorrow; The United Nations and

Global Governance in the New Millennium, International Conference, UNU, Tokyo.

Truett, D.B., L.J.Truett and B.E. Apostolakis. (1994) ―The Translog Cost Function and

Import Demand: The Case of Mexico‖. Southtern Economic Journal,60(3):685-700.

Varian, H. R, 3rd edition (1992) Microeconomic Analysis, New York, W.W. Norton and

Company.

Zaloshnja E. X., (1997) Analysis of Agricultural Production in Albania: Prospects for

Policy Improvement.