A Conceptual and an Empirical Study on the Determinants and the Possibility of Sustained Growth in Kenya
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Date
1996-06
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A.A.U
Abstract
This paper is a general empirical study on the determinants and the possibility of
sustained growth for Kenya. Some determinants were regressed on investment, agricultural
output, growth in the service sector, net capital inflow, and growth in exports. It
concludes that financial deepening, outward orientation, foreign capital inflow, human
capital development and service sector growth have a strong positive link to better
economic performance. Population size, political disruption and adverse terms of trade
are lethal to growth. The paper further reveals the substitution between economic
prudence and donor funding, held responsible for current economic achievements. This
is attributed to donor conditionality and competitive multi-part} politics which forced the
government to clean up economic mismanagement and built a reputation. This can only
be maintained if policies are incessantly consistent without reversal.
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Keywords
Conceptual and an Empirical, Determinants and the Possibility