BBSE Research Projects (2018)

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Now showing 1 - 5 of 29
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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
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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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    Determinants of adoption of agricultural technology in Kenya: a case of small scale farmers in Kirinyaga
    (Strathmore University, 2018) Chweya, Valentine Muhonja
    Agricultural technologies are seen as an important route out of poverty in most of the developing countries. However the rate of adoption of these technologies has remained low in most of these countries. This study aim at shedding some light on the potential factors that influence agricultural technology adoption in Kenya by looking at small-scale farmers in Kirinyaga. Kenya. The following study objective guided the study, to identify determinants of adoption of technology in a among small scale farmers in Kirinyaga. A Iogit and probit model is used to analyze the determinants of technology adoption, using a secondary survey data of 4363 observation. The following were the findings, education level, age, farm size, level of income, belonging to a group and access to credit influence the decision of adoption. Given these results, the paper recommends tailored credit schemes for farmers, dissemination of information via groups, improvement of links between manufacturer of the modem technology and the farmers and subsidizing of the modem agricultural technology
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    The Relationship between fiscal policy and elections in the East African Community
    (Strathmore University, 2018) Wachira, Muthoni
    Incumbent leaders may manipulate fiscal policy in terms of increasing recurrent or capital expenditure to convince voters of their competence in running the government. Financing of the increased expenditure is what leads to fiscal balances since the expenditure exceeds the revenue a country generates. This study aims to find out whether fiscal policy is affected by election years for the East African Community member countries which include Kenya, Uganda, Tanzania, Rwanda and Burundi. The main variables of interest are pre-election, election, post-election years and the fiscal balance to capture the fiscal policy manipulation. Control variables are also included such as inflation, the logarithm of the exchange rate and the growth rate in real GDP. Arellano and Bond Generalized Method of Moments estimator was applied to the dynamic panel data model for the time span 1990-2015. The study concludes that the fiscal balance is not affected by the incumbent leaders. This is so because the fiscal balance was insignificant during the election years for the EAC member countries. However, there is a significant relationship between fiscal balance and the growth rate in real GDP indicating that the fiscal balance in East African member countries is affected more by economic variables as compared to opportunistic incumbents. Despite the fact that fiscal balance is not affected by elections, there is still need for strong institutions which translate to better governance, better allocation of public goods, which leads to sustained growth that will lead to a reduction in the fiscal balance
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    The Labour dynamics in the European single market
    (Strathmore University, 2018) Koech, Kevin Kipkirui
    This study examines the impact that the introduction of the European single market has had on the unemployment rates and the level of wages in member countries of the European Union. The study seeks to obtain indicators of the labor situation of countries that are in the European Union's single market and using the synthetic counterfactuals method estimate how the levels of unemployment would have behaved for these countries had they not joined the European Union. The study looks at general unemployment of the European population. Data used in the study are those obtained through the use of claimant count which records those claiming unemployment benefits and job seekers allowance and can prove that they are actively looking for work. The study will also employ the use of data obtained using the labor force survey method in line with the International Labor Organization's criteria of comparing unemployment.