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dc.contributor.authorKipchirchir, Lang'at Douglas
dc.date.accessioned2016-04-15T09:34:05Z
dc.date.available2016-04-15T09:34:05Z
dc.date.issued2015-11
dc.identifier.urihttp://hdl.handle.net/11071/4439
dc.descriptionSubmitted in partial fulfillment of the requirements for the Degree of Bachelor of Business Science in Financial Economics at Strathmore Universityen_US
dc.description.abstractOne of the key components of development funds for Kenya is Official Development Assistance (ODA). However, given ODA's general underwhelming nature and overall ineffectiveness in fostering economic development, it would be useful to consider absorption capacity as the best measure of how well aid to Kenya is working, and not just the gross amount of ODA flows to Kenya. That is the basis of this research. The research utilized time series data obtained from the World Bank aggregator, using a time period of 30 years i.e. 1981 to 2010. The dependent variable in this research is GDP growth rate, which indexes economic development. The absorptive capacity was found to display a mean reverting trend, with an average of 87% over the past 30 years. Thereafter, an Auto regressive Distributed Lag model was used to determine the long run relationship between ODA absorption and economic development. The results of the model showed that the absorptive capacity of ODA negatively influences economic development in the current time period, but it has a positive and significant influence on economic development in the next time period. However, in the long run, the relationship between the two variables is statistically insignificant, meaning that the relationship between the two cannot be determined to be a result of anything but mere chance.en_US
dc.language.isoenen_US
dc.publisherStrathmore Universityen_US
dc.subjectAbsorption capacityen_US
dc.subjectOfficial Development Assistanceen_US
dc.subjectKenyaen_US
dc.subject1981en_US
dc.subject2010en_US
dc.subjectEconomic developmenten_US
dc.titleAn analysis of the absorption capacity of Official Development Assistance in Kenya from 1981 - 2010 and its relationship with economic developmenten_US
dc.typeOtheren_US


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