BBSE Research Projects (2018)

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http://hdl.handle.net/11071/6456

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Browsing BBSE Research Projects (2018) by Subject "Economic growth"

Now showing 1 - 4 of 4
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    An Analysis of the quantitative impact of climate change on national level economic growth: a Kenyan case study
    (Strathmore University, 2018) Mbotela, Immanuel Malombe
    The issue of climate change has been a growing interest in recent times for a number of reasons. Chief among them is because the economic landscape of most if not all African countries is dependent on the dynamics of climate change. Key sectors of the economy such as agriculture, forestry, energy, coastal and water resources are highly susceptible to climate change. That being the case, this paper seeks to analyze the empirical linkage between economic growth and climate change in Kenya from a quantitative point of view. Using data from two climate variables, temperature and precipitation, and employing time series analysis techniques, the paper tries to estimate both the short-run and long-run effects of climate change on growth. The paper establishes that an increase in temperature significantly reduces economic performance in Kenya. This takes the form of reducing agricultural output, industrial output, and aggregate investment, and increasing political instability. Some policy options have arisen from this study all in all. First and most importantly, mainstreaming climate change adaptation into National Development Strategy and budgets could promote proactive engagement on the formulation and implementation of climate change adaptation strategy. Second, the potential of regional or multiple countries approach to climate change adaptation is high due to possibility of economies of scale.
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    An Empirical analysis of inclusive growth in Kenya measurement, determinants and policy recommendations
    (Strathmore University, 2018) Wakhu, Ronald Brian
    This study examines inclusive growth in Kenya. The call for inclusive growth has been broadcasted the world over by policy makers. However, there seems to be very little understanding and very small steps towards the achievement of significant inclusive growth. A unified measure of Inclusive growth is estimated by integrating economic growth performance (to capture growth) and income distribution properties (to capture equity).This allows us to capture inequality as well as economic growth. The unified measure is then regressed against a set of variables that are used in growth and inequality analysis in order to identify the determinants of inclusive growth. Results indicate that inclusive growth in Kenya from 1978-2005 had large shocks in the 1990s, but largely remained non-inclusive before 1992 and inclusive briefly after 2002 till 2005.0f the variables used in analyzing the determinants of inclusive growth, only trade openness and financial deepening are found to be statistically significant, positively and negatively respectively.
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    Impact of private sector credit on economic growth in the East African Community
    (Strathmore University, 2018) Okoth, Mercy Anyango
    The levels of credit extended to the private sector by banks is considered as an important factor when measuring the extent of financial development of a country. Credit extended to the private sector by banks is considered more efficient approach to support the development of economies compared to extension of credit to the public sector. In countries where the government through the public sector dominates in terms of receipt of credit, the private sector experiences challenges funding its investments though credit. In this study, vector error correction model has been applied, on annual panel data from 1988 to 2015 to investigate the relationship between credit extended to the private sector by commercial banks and economic growth in the EAC member states. This study focused only on Kenya, Uganda and Tanzania due to data availability. Other control variables used were; government expenditure, inflation and interest rates. The results show that bank credit to the private sector has a positive impact on the economic growth in the EAC in the long run. Interest rates, inflation and government expenditure also have a significant impact of the gross domestic product of Kenya, Uganda and Tanzania. The EAC member countries have implemented reforms aiming to achieve macroeconomic convergence before the on-coming East African Monetary Union, thus the expected empirical results show that policy makers in the EAC should focus on long run policies to promote economic growth such as innovations in the banking and financial markets in order to increase the private sector credit and maximize on the benefits of regional integration.
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    Relationship between external debt and private investments in Kenya
    (Strathmore University, 2018) Gichuru, Michelle Njoki
    The purpose of this study is to find out the effectiveness of external debt in boosting economic growth in Kenya and its impact on private investment. This study uses an Auto Regressive Distributive Model (ARDL) to estimate the long run impact of external debt on private investments in Kenya. Time series data is used for the period 1971-2016. The main hypothesis in this study is that the large accumulation of external debt cripples investments in the private sector. The results of the model showed that external debt has a negative impact on private investments although it is statistically insignificant both in the long run and in the short run. Meaning that the relationship between the two cannot be determined to be a result of anything but mere chance