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 "Economy"

Now showing 1 - 4 of 4
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    An Analysis of regional integration in a developing economy.
    (Strathmore University, 2018) Oketch, Bruce Otieno
    The purpose of this study is to find the effect of regional integration in the Kenyan economy with a particular emphasis of dete1mining whether the regional integration has resulted to trade creation or trade diversion. The study adopts an augmented gravity model to determine the effects of the regional integration and the resulting effects either being trade creation or trade diversion. Time series data was used for the period 1980-2015. Using a panel data analysis the results show that there was some trade creation within EAC and COMESA.
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    Effects of electronic money on velocity of money in Kenya
    (Strathmore University, 2018) Myall, Adrian Henry
    The purpose of this study is to determine the effect that electronic money has on the velocity of money in Kenya as well as its determinants. The study uses income, exchange rates, expected inflation, interest rates and financial innovation as the determinants of velocity in the model. Monthly time series data from the period 2009-2016 is used and autoregressive distributed lag (ARDL) model is implemented with six measures of velocity of money as the dependent variable. The measures include velocity of; narrow money (Ml), narrow money less electronic money (Ml-EM), broad money (M3), broad money less electronic money (M3-EM), electronic money (EM) and quasi-money (M2). Exchange rate and the number of bank branches were significant in determining all the velocity measures in the long run, with a positive and negative relationship respectively. The presence of electronic money was found to reduce the positive relationship of velocity with exchange rate while the relationship of velocity with the number of bank branches became more positive. This means that increased use of electronic money may help to curb the effects of exchange rate fluctuations while at the same time it increases the velocity of money as more people get access to financial services. The study concludes that the issuance of electronic money should be controlled and closely monitored so as to avoid adverse effects to the monetary system and economy.
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    Impact of government expenditure on gross domestic product in east Africa
    (Strathmore University, 2018) Kamau, Ken King'au
    It is important for a country to determine how much government expenditure that should be spent on different sectors of the economy so as to promote economic growth. The study aimed at developing a model that will explain the relationship between government expenditure and GDP in East Africa, i.e. Kenya, Uganda and Tanzania. The study proposed to use nonexperimental research design with data from 1990-2015 and the data was obtained from various sources: World Bank Open Data, IMF data bank. The study focused on four key sectors of the economy: health, infrastructure, education and defense and aimed to conclude on the relationship between government expenditure in these various sectors and GDP, i.e. whether it is positive or negative. The Granger Causality test determines the casual relationship between GDP growth and government expenditure components (Ender, 1995). The study findings indicated that; both Military and health expenditure have a positive significance to economic growth whereas infrastructure and education expenditure have a negative effect on economic growth in East Africa. The governments should emphasize to increase expenditure to military and health so as to influence GDP positively thereby promoting economic growth.
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    The Impact of total public expenditure in education on economic growth in Kenya
    (Strathmore University, 2018) Mutia, Sharon Kavuo
    This paper examines the effect of additional public expenditure in education on economic growth in Kenya. At the onset it was hypothesized that additional education expenditure would lead to economic growth since the latter hypothesis is backed by the theory of human capital. This study utilizes the Vector Error Correction Model (VECM) to determine if additional public expenditure in education causes GDP growth in the Kenyan context. The study finds that there exists a long run relationship between education expenditure and economic growth. Further, it is found that education expenditure is a significant determinant of GDP growth after controlling for certain factors. Based on these findings, it may be of use to research further on the type of education expenditure that yields the best results be that recurrent or capital expenditure. Additionally further research could delve on the impact of public expenditure in education at the different levels of education (primary, secondary and tertiary)