ABSTRACT Government expenditure is a key component for guaranteeing a nation assigns and spend budgetary resources to accomplish a robust economic performance. However, the achievement of macroeconomic objectives, from time immemorial, has been a policy priority of every economy whether developed or developing. However, government expenditure still remains an important issue in global debates. The concern is whether or not government expenditure increases the output of different sectors in t...
ABSTRACT Measurement of efficiency levels of transport helps in identifying opportunities that enhance the public transport performance. This will facilitate effective and efficient management of fleets that provide public road transport and planning for interventions incase the sector needs improvement. Public transport sector is a key social facility that aims at improving the welfare of regions inhabitants. Across developing countries provision of efficient, fair and impartial road transp...
ABSTRACT Kenya has witnessed increased financial integration following capital liberalization in the late 1980s which led to increased foreign private capital flows. Financial integration is considered to complement domestic investment, enhance economic growth and reduce macroeconomic volatility by promoting credit and risk diversification. However, private capital can enhance macroeconomic volatility by exposing domestic market to external volatility. Despite Kenya experiencing increased fi...
ABSTRACT Developing countries have invested heavily in pursing policies and strategies to attract foreign direct investments to augment the existing capital stock. These efforts have seen a substantial increase in the flow of foreign direct investments to developing countries. For the last two decades foreign direct investments inflows in Kenya have risen substantially but the effect of the rising inflows on economic growth has not been felt. The growth in foreign direct investments inflows ...
ABSTRACT Growing of Jatropha curcas has been received with mixed feelings in Kenya. The plant has tremendous potential to be Africa's most excellent bio-fuel feedstock. However, there have been concerns that the plant is not commercially viable and that it negatively affects food production and security. The lack of factual information coupled with politics surrounding the growth of the plant has compromised its uptake by local farmers. This has however not dampened the spirits of pro poor d...
ABSTRACT Public debt remains one of the most critical elements of economic development especially in developing countries. This study focuses on the public debt in Kenya and its effect on economic growth. Most developing countries will expect that public debt will affect the economic growth positively. Thus the resources from public debt should be used to finance government expenditures which will spur economic growth of the country. There is a considerable increase in domestic debt as compa...
ABSTRACT Public sector wage bill has been growing rapidly in Kenya. The wage bill as a proportion of recurrent expenditure averaged 63 per cent per year between 1993 and 2005 and 56 percent between 2006 and 2017. In addition, public sector wage bill as a percent of gross domestic product has been high averaging 11 per cent between 2006 and 2017. This is compared to seven per cent international benchmark and Kenya government’s target of eight per cent by 2017 and six per cent by 2020. The g...
ABSTRACT During the 1990' s the world experienced a new wave of regional integration agreements (RIAs) that reached unprecedented proportions. The increasing importance of regional integration agreements and in particular their extraordinary expansions during the 1990's are among the most salient developments of the international trading system and its believed to be a vehicle for the promotion of trade and economic growth. The main driver for increasing number of Regional Integrations Agree...
ABSTRACT The economic growth and taxes are very important aspects in the development of any economy. This research analyses the tax rate that optimize economic growth in Kenya. The specific objectives of the study were to: To establish the effect of tax rate on economic growth in Kenya and to determine the tax rate that maximizes economic growth. This study adopts the Scully model and a balanced budget approach that is revenue being equal to expenditure using time series data from the period...
ABSTRACT This study analyses the constraints to smallholder credit farm investment. The data for the study were collected in Majoge Chache Location, Kisii District. A total of 40 respondents were ' interviewed for a period extending from 17th of July to the 5th of August, 1995. A list of farmers in Majoge Chache Location who had borrowed funds for investment in coffee farms was obtained from the Loans Officer based at Ogembo Divisional Headquarters. Following the list, systematic sampling pr...
ABSTRACT In developing countries, attainment of economic growth depends upon physical capital, in addition to other factors of production. Growth in physical capital entails investment in capital goods which help in the production of other goods and services. The concern in this study was to investigate the determinants of investment in the informal carpentry sub-sector in Kitui town in Eastern Kenya. The data used was obtained from the entrepreneurs owning carpentry workshops in Kitui town....
ABSTRACT Persistent current account deficit is a chronic problem in many developing countries including Kenya. In an attempt to understand disequilibria dynamics in Kenya, this study sought to investigate the effect of real exchange on current account balance and additionally investigate whether the rate of import growth in Kenya is consistent to balanced economic growth as stipulated in Thirlwall law. The study is based on two main theories, the neoclassical elasticity approach and balance ...
ABSTRACT This study sought to provide empirical evidence on technical efficiency levels and trend of the Kenya Agro-processing industry. The major problem of the agro-processing industry is that it has been inefficient in terms of value addition to the agricultural produce and Kenya is known to be a net exporter of raw agricultural produce instead of high-quality value-added products. This study sought to determine the efficiency estimates of the agro-processing industry and analyzed the tre...
ABSTRACT The need for infrastructure development in Kenya was initiated in the early years of economic planning. For instance, the Sessional Paper No. 10 of 1965 among other strategic objectives provided a premise for infrastructure development to fuel rapid industrialization and make Kenya a market economy. Emphases have since been made in the subsequent economic development plans in 1970s, National Development Plans in 1980s, the Economic Recovery Strategy for Wealth and Employment creati...
ABSTRACT In light of the regional integration efforts, this study sought to find out the impact of regional trade integration on economic growth of East Africa Community. One of the provisions to increase the EAC intra-trade is Article 75 of the Treaty and the Customs Union (CU) Protocol whose implementation would increase the value and volume of trade within the EAC. GDP growth rate analysis shows a major disconnect between deepening integration and achievement of growth within a common mar...