Transmission of International Prices to Domestic Markets in Kenya
This study looks at the transmission of international prices to the Kenyan economy in 2007-2008 with a focus on food and oil prices. The degree of price transmission between spatial markets signifies the level of integration of such markets. The information on magnitudes of the price elasticities of demand for imports, and the extent of price transmissions is very important in the design of policies to deal with external price shocks.