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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Addis Ababa University
Abstract
This paper is a general empirical study on the determinants and the possib ility 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 deepen ing, outward orientation, foreign capital inflow, human
cap ital development and service sector growth have a strong positive link to better
economic p erformance. 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 achievem ents. This
is attributed to donor conditionality and competitive multi-party 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
Possffiility of Sustained Growth in Kenya