Government Expenditure and Economic Growth: Does Corruption and Democracy Matter?
This study investigated the potential role of corruption and democracy in the expenditure-economic growth nexus. Economic literature predicts economic growth-enhancing activities of various core functions of government. However, excess government expenditure, in corrupt and undemocratic countries, may slow down the overall performance of the economy through rent-seeking activities, ineffectiveness and engaging in unproductive projects. The research objective is to analyze the role of democrac...
Do Private Transfers and Foreign Direct Investment Crowd out Official Transfers in Ghana?
The study analyzes the relationship between private transfers, foreign direct investment (FDI) and official transfers in Ghana. The research relies on the quarterly frequency time series data from the Ghana Statistical Service for the period 2003-2022. Phillips-Perron (PP) test and the Engle-Granger approach were used to investigate the properties of the data concerning unit roots and cointegration respectively. The ordinary least squares (OLS) regression technique and Granger causality test ...
Drivers of Carbon Emissions in Kenya: The Perspective of Technology
The empirical studies have portrayed from a different perspective that technology, foreign direct investment (FDI), and economic growth have diverse outcomes on carbon dioxide (CO2) emissions. African economies specifically Kenya are currently threatened with more CO2 emissions for which proper strategies need to be adopted to reduce and mitigate this situation. To address this issue, the Autoregressive Distributed Lag (ARDL) technique was utilized, differentiating between the long-term and s...
Effect of Mobile Money on Money Demand in Kenya: Time Series Regression Analysis
The unprecedented growth of mobile phones to make transactions has become a dependable form of payment for low-income earners living in rural and urban Kenya, increasing demand for goods and services and stimulating demand for money. However, its effect on money demand and subsequent effect on monetary policy is inconclusive as observed from past empirical studies. Furthermore, the rapid adoption of mobile money has generated new data needs and growing interest in understanding its contributi...
Foreign Direct Investment and Economic Growth in Kenya: A Comprehensive Analysis
The study investigates the relationship between foreign direct investment (FDI) and economic growth in Kenya through comprehensive regression analysis and causality tests. Theoretical literature argues that FDI inflow can transfer great advantages to the host country, however, empirical studies show that the benefits of FDI vary greatly across countries. Kenya has traditionally been one of the largest recipients of FDI in Africa, foreign investors provide intangible assets to support the oper...
Analysis of County Government Expenditure and County Economic Growth in Kenya
The modern devolution development across the globe has been in part driven by assertions of a supposed ‘economic dividend’linked with the devolved expenditure. There is however, little empirical evidence to validate these assertions in Kenya. Most empirical studies across different countries have used different methods of analysis, different time periods and diverse techniques of measuring variable which have generated mixed conclusions and others are inconclusive. More so, in Kenya ...
Effect of government expenditure on economic growth in East Africa A disaggregated model
The goal of this research was to investigate empirically how government expenditure contributes to economic growth in East Africa. Most existing studies on the association between government expenditure and economic growth show conflicting results and mainlyfocus on developed economies. Hence this study focused on both the functional and composition of public spending of the East African countries over the period from 1980 to 2010, with a particular focus on sectoral expenditures: Education, ...
Inflation Induced Savings in Kenya
Recently most nations have been experiencing reduced gross savings due to external shocks, among them the financial crisis and coronavirus disease-related macroeconomic costs, this study investigates the role of the inflation rate in explaining the variation in the saving behaviour in Kenya. Available empirical works have been conducted mostly in advanced economies and hence are difficult to generalize for developing countries considering differences in macro economic conditions. Therefore, t...
Determinants of Money Demand: An Empirical Examination
Tremendous changes have been witnessed in the developing countries' macroeconomic landscape over the past few decades. For instance, several forms of financial innovations have been witnessed in the sub-Saharan African region over the past decades. These changes can shift various parameters of the money demand model and function. However, few empirical studies have been carried out in this scope in East Africa. It is against this backdrop that this study will employ the panel estimation techn...
Will Fiscal Decentralization Stimulate Energy Demand? Evidence From Kenya
This study set out to estimate empirically the effects of fiscal decentralization on energy demand in Kenyan counties, 2013-2017. The finding of this study has established the critical role of decentralization in positively influencing electricity demand at the sub-national level through improved energy efficiency, rises in energy innovation and involving local actors in energy planning processes. This has been qualified by the ability of decentralization to provide necessary economic and fin...
Factors Affecting Growth of Small Business Enterprises
The aim of this study was to establish the determinants that influence the growth of second-hand products enterprises. Small business enterprises (SBEs) are faced with threat of failure with past statistics indicating that three out of five fail within the first few months. The second-hand products enterprises studied were appraised with respect to the financial features and non-financial features that influence growth. The objective was achieved by employing descriptive research design. The ...
Determinants of Savings in Kenya: Time Series Analysis
With a steep fall in the national savings rate in developing economies attributed to external shocks and stagnation of economic growth, this study will investigate the key drivers that explain variations in the public savings rate in Kenya using time series data spanning from 1975 to 2020. Available published economic literature has only investigated the determinants of savings in industrialized economies while ignoring low-income countries. To estimate the main determinants of national savin...
Tourism Led Growth: Evidence from Time-Series Data
The empirical debate on the role of international tourism on local economic growth isinconclusive and is characterized by two main opposing views: the Tourism-led economicgrowth hypothesis and the Economy-driven tourism growth hypothesis. The objective ofthe study was to establish the role of tourism development on economic growth using timeseries secondary data from Zimbabwe. Empirically, the study develops a tourism-growthmodel that is an extension of Solow (1956) neoclassical growth functi...
Fiscal policy and economic growth: Evidence from European Union countries
This article empirically examines the fiscal policy elements affecting economic growthin 27 European countries and Switzerland (Without the United Kingdom). The researchobjective is to estimate the impact of macroeconomic variables such as tax revenue,government expenditure and public debt on the economic development of 28 Europeancountries. The study employs a panel ordinary least squares (POLS) technique with afixed effect estimation method. The Hausman test was applied to support the valid...
The Link between Human Capital Formation and Economic Growth in East Africa
The East African Community members' strategy is focused on achieving smart, sustainable, and inclusive economic growth. This cannot be achieved without the major contribution of skills, knowledge, and innovation, commonly known as human capital formation. It is difficult to believe that these goals could be realized without a good education and training system, training development, better health sector infrastructure, a large diffusion of knowledge in the manufacturing and service sector, an...
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Technical Unversity
January 2015 to Present