ABSTRACTThe Nigerian stock exchange (NSE) has been created to serve various functions such as offer of business guideline to top business management concerning cost of capital for the Nigerian stock exchange provides avenues for long term investment. These function credited to the stock exchange is expected to create positive effect on the general business and manufacturing sector of the Nigerian economy.However, this research work is determined to evaluate the role of stock Exchange on the m...
As governance and economic sophistication become increasingly interconnected, understanding their relationship is crucial for shaping national growth strategies. This study investigates the impact of political rights and civil liberties on Indonesia’s economic complexity from 2006 to 2021 by disaggregating the Economic Complexity Index (ECI) into trade, technology, and research components. Indonesia serves as an ideal case study due to its dynamic political landscape, evolving civil liberti...
Kenya is one of the developing countries trying to provide affordable and decent housing to its residents. Macroeconomic instability persists despite efforts, impeding housing supply from both government and real estate sectors.This study examines the macroeconomic factors influencing Kenya's housing supply from 1980 to 2024, using time-series data. The augmented Dickey-Fuller and Johansen cointegration tests are conducted, along with the Vector ErrorCorrection Model, to assess long run relat...
Empirical research on the macroeconomic factors influencing infrastructure development has yielded inconclusive results, with significant variations observed across studies. This study examines the determinants of infrastructure development in Kenya using a time series data analysis framework, with data spanning from 2003 to 2024. The study’s main estimates use the generalized-method-of-moments (GMM) estimator that allows us to account for the potential endogeneity of the infrastructure and...
The relationship between corruption, democracy, and economic growth is complex andmultifaceted across empirical studies. Understanding this relationship is crucial for policymakers,researchers, and scholars alike as they seek to promote stable democracies and sustained economicdevelopment in middle-income countries. Kenya has long grappled with issues of corruption andchallenges to its democratic processes. These problems have significant implications forgovernance, economic growth, political...
Health spending remains a significant concern in low and middle-income countries due to limited financial resources allocated to the health sector. In Kenya, one of the key objectives of the government's Big Four development agenda, which is targeted for completion by 2022 and partially realized in some counties by 2023, is achieving universal health coverage. Over the years, health has remained a top priority and a focal point in political campaign agendas, with the government consistently i...
The potential for a feedback relationship between climate change and income inequality has become a concern in sub-Saharan African (SSA) countries due to its significant environmental and socio-economic impacts. This study aims to inform policymakers on ways to address inequality and climate resilience in the region simultaneously. It examines the relationship between climate change and income inequality in SSA countries, focusing on Kenya, Tanzania, and Uganda, by analyzing data from these t...
The rapid increase in government expenditure in European member states has raised concerns among policymakers regarding the role of tax revenue generation and its impact on economic growth. The study aims to determine how excise duty revenue influences economic growth in Southeastern Europe (SEE), considering the dual roles of excise taxes in revenue collection and as regulatory tools. It examines how different excise duty policies relate to economic performance and regional integration. Alth...
This paper scrutinizes whether government borrowing in Eastern Europe is grounded on the need to provide infrastructure and public amenities as provided in the budget or is triggered by government deficit budgeting. European Union countries have experienced accelerated growth in public debt in the last half a century despite growing tax revenue and cuts in public spending. The purpose of this paper is to investigate the direct and indirect links among public debt, tax revenue and government e...
This study is a comparative analysis of Kenya and South Africa, the largest economies in Eastern and Southern Africa respectively, based on gross domestic product (GDP), energy use and carbon emissions. This study investigates the contribution of economic growth and renewable energy use on greenhouse carbon dioxide emissions in both country-level and group data, to observe their possible impact on environmental pollution. The present study addresses United Nations Sustainable Development Goal...
e 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 these ...
Abstract In this paper, we explore the dynamic relationship between aggregate foreign equity inflows and aggregate liquidity of the Kenyan stock market using transactional foreign trading data and several liquidity measures. We employ vector auto regression with monthly gross foreign inflows, local stock market liquidity and returns over the period 2011–2018. We discover a one- way causality link from inflows to liquidity and that foreign investors promote rather than impede local liquid...
Abstract In this paper we examine the role of illiquidity and foreign investor preferences in asset pricing in the Kenyan frontier stock market. Since stock illiquidity and heterogeneous foreign investor preferences are pervasive features of this market, investors are likely to demand higher compensation for holding illiquid and less foreign investor-preferred stocks, thereby increasing cost of equity. We test this hypothesis by incorporating an illiquidity and foreign stock holding factor i...
Abstract This paper explores the role of macroeconomic conditions on systematic stock market liquidity in Kenya. The study first estimates the monthly probability of liquidity switching from a high to a low liquidity state using the Markov regime switching framework. Then, using ordinary least squares, the study identifies macro factors that significantly drive liquidity fluctuations. Importantly, monetary policy changes, exchange rate fluctuations and global risk aversion are found to signi...
Abstract Small and medium enterprises are a key engine of economic growth in both developing and developed countries. Small and medium businesses being profit making institutions are expected to pay taxes to the government. Therefore, tax compliance is critical in all economies which recognize the role played by revenue collected from tax in national development. Nonetheless, developing countries are dominated by low tax compliance levels, in the face of the frequent appeal from tax collecto...