This study is a comparative analysis of Kenya and South Africa, the largest economies in Eastern ... more This study is a comparative analysis of Kenya and South Africa, the largest economies in Eastern and Southern Africa respectively, based on gross domestic product (GDP), energy use and carbon emissions. This study investigates the contribution of economic growth and renewable energy use on greenhouse carbon dioxide emissions in both country-level and group data, to observe their possible impact on environmental pollution. The present study addresses United Nations Sustainable Development Goal 13, to combat climate change and its impacts. To this end, this study is conducted in Kenya and South Africa using secondary data for the period 1990-2022. As an econometric strategy, we adopt the use of both panel and time series over the highlighted countries. The study employed an ARDL and PMG panel estimation approach to analyze the long-run relationship while Granger causality was conducted to confirm the short-run relationship between study variables. The empirical results show that economic growth and energy use significantly increase carbon emissions in South Africa, Kenya and aggregate data. Moreover, changes in industrial structure and urbanization have a mixed influence on carbon emissions in all models. Furthermore, short-run causality results point to a unidirectional relationship running from economic growth to carbon emissions in Kenya. In contrast, for South Africa, causality runs from carbon emissions to growth. In addition, for panel analysis, the study confirmed a bidirectional relationship. In conclusion, this comparative case study shows that countries with substantial growth in GDP and intensive energy use have high carbon emissions. Given these, the positive relationship poses a dilemma for Kenya and South Africa in their drive to achieve growth and at the same time manage environmental pollution. The empirical findings of this study imply that these countries should take all possible policy actions such as the massive investment and deployment of renewable energy, shifting gradually from non-renewable energy sources to renewable sources, a range of renewable energy sources, especially those that don't generate greenhouse gases, are needed, the use of climate finance to transition to clean
The study provides a focused analysis of Kenya’s determinants of debt sustainability owing to its... more The study provides a focused analysis of Kenya’s determinants of debt sustainability owing to its consistent budget deficits and higher debt servicing costs. Unlike broader studies, this research focuses on Kenya's unique economic conditions and talks about the consequences of unchecked debt servicing payment failures in Kenya that could undo macroeconomic progress if unchecked. The study deploys a single equitation regression analysis followed by a series of robustness checks and a generalized method of moments (GMM) technique to analyze the link for Kenya, 1990-2023. The regression results show that debt in Kenya is not sustainable, with factors such as an increase in debt stock, high-interest rate costs, increase in budget deficits, inflation rate increase and high depreciation of the local currencies ultimately wiping out the repayment potential of Kenya. However, the results show that increased export revenue earnings and faster economic growth can improve budget resources for debt servicing. Our findings suggest that policymakers in Kenya should focus on fiscal consolidation by reducing non-interest expenditures and enhancing revenue collections.
This manuscript investigates the impact of gender-focused foreign aid on income inequality in Eas... more This manuscript investigates the impact of gender-focused foreign aid on income inequality in East Africa, a topic with limited existing research. This research adds value by providing practical recommendations for policymakers to enhance the effectiveness of aid programs in fostering economic equity through targeted interventions. Using the Generalized Method of Moments (GMM) on panel data from three East African countries for over a decade provides robust evidence that gender-sensitive aid can significantly reduce income inequality. Our findings indicate that gendered aid, education and government expenditure were the driving force towards lower income inequality. Additionally, trade openness and inflation rates reduce income inequality in sampled countries, though insignificant. In contrast, the findings provide evidence that high economic growth tends to Original Research Article
A general conception is that investment induces economic growth, but there is still debate over w... more A general conception is that investment induces economic growth, but there is still debate over which type of investment contributes more to economic growth. The disaggregation of investment into public and private components allows estimation of the impact of the two types of investments on economic growth. This research, therefore, empirically estimates the relationship between each investment component against economic growth by constructing panel data for Ghana and Kenya from 1991 to 2022. The empirical strategy adopted in this study can be divided into three major stages. First, the LLC unit root test in the panel series is undertaken. Second, if integrated in the same order, a Kao co-integration test is conducted. Finally, if the series is co-integrated, the vector of cointegration in the long run is estimated using the dynamic ordinary least squares (DOLS) method. Our estimation results, based on the panel cointegration approach confirm a long-run relationship between the study variables. Further analysis shows that public investment can promote economic growth in the long run. In contrast, the results indicate that private investment can obstruct growth. The study has shown that private investment did not always increase economic growth in Ghana and Kenya. The study findings indicate that public investment is more efficiently allocated in Ghana and Kenya than private investment, suggesting the best economic strategy is for private investment to be complementary and promote higher public investment to improve public sector productivity. Therefore, policymakers should focus on creating a favourable investment climate, providing fiscal stimulus and promoting public-private partnerships to enhance infrastructure development and stimulate private-sector investment, which can sustain long-term economic growth.
The prospect of decoupling economic development from CO2 emissions in Ghana is examined in this p... more The prospect of decoupling economic development from CO2 emissions in Ghana is examined in this paper, with an emphasis on the manufacturing, export, and adoption of renewable energy sectors. The paper investigates the long-term and short-term correlations among CO2 emissions, renewable energy consumption (RNE), population growth (POP), manufacturing value-added (MVA), Economic growth (GDP), and exports (EXP) using an Autoregressive Distributed Lag (ARDL) bounds testing method using time series data from 1990 to 2020. The outcomes show that the variables are long-term cointegrating. Long-term GDP and CO2 emissions show a positive but negligible correlation, whereas exports show a negative and insignificant correlation. In the near term, using renewable energy has a markedly undesirable consequence on releases, yet, over time, the connection is positive and negligible. Because the turning point when economic expansion results in lower emissions is not apparent, the Environmental Kuznets Curve concept is not entirely substantiated. The report emphasizes how specific laws encouraging the use of renewable energy, environmentally friendly export and manufacturing processes, and technical advancements are necessary to help Ghana move toward a low-carbon economy.
The effect of fiscal decentralization on economic growth has majorly been investigated in develop... more The effect of fiscal decentralization on economic growth has majorly been investigated in developed countries in comparison to sub-Saharan countries. This study will focus on sub-Saharan state and specifically Kenya's 47 county governments created by the new constitution, to determine how fiscal federalism has influenced their economic opportunities. For this purpose, the study will investigate the effect of tax revenue and expenditure decentralization assignments on county economic growth. The study was informed by neoclassical Solow-Swan growth model. In this context, a panel series data of 47 Kenyan counties from 2013 to 2017 are analyzed by using panel ordinary least squares estimators. During estimation, panel unit root analysis was performed to avoid misleading conclusion. From estimation result, expenditure decentralization has a positive effect on sub national growth. However, on the second objective, tax revenue manifested a negative relationship with GCP growth. In this context, the study conclude that fiscal decentralization components could be one of the key policy choices for developing economies that are considering to experiment or to deepen their decentralization processes for economic growth.
This study adopted an endogenous model to analyze the potential role of corruption control in the... more This study adopted an endogenous model to analyze the potential role of corruption control in the impact of taxation on capital flight in East African countries. The study used the generalized method of moments (GMM) with panel data from 2009 to 2022 to estimate the study regression model. The estimation results show that taxation and corruption control have positive and direct impact on capital flight. While, the interaction between taxation and corruption control have a negative and indirect impact on capital flight. Therefore, countries with corruption control can compromise the impact of taxation on capital flight. Based on the findings, to maximize mobilization of tax income and reduce capital flight in East Africa, institutional changes aimed at combatting corruption and promoting good governance are essential.
The study aims to examine the impact of economic growth on female labour market participation in ... more The study aims to examine the impact of economic growth on female labour market participation in Kenya with data spanning between 1991 and 2022. Labour-force data disaggregated by gender are important to monitor the dynamic of gender inequalities in the labour market. The secondary data used to construct the time series was obtained from the World Bank and the International Labour Organization sources. The research was informed by the Feminisation U hypothesis, which describes the tendency of female labour force participation to first decline and then rise in the process of economic growth. The study used a fully modified ordinary least square (FMOLS) and Granger causality test to analyse the long-run effect of economic growth on women's participation in the labour market. The study results indicate that economic growth positively and significantly contributes to women's participation in the labour market in the long run. Furthermore, the results of the control variables suggest that education has a beneficial effect on women's workforce, while women's access to the workforce is hampered by male labour market participation, fertility rate, female self-employment and rate of urbanization. The study suggests to policymakers that the strategy to success is to facilitate education, vocational training, and social change that enable women to play the same role as men in the labour market. Finally, women must be in productive sectors and government should remove barriers to ownership of factors of production to encourage them to participate in economic activities and the labour market.
This study investigated the potential role of corruption and democracy in the expenditure-economi... more This study investigated the potential role of corruption and democracy in the expenditure-economic growth nexus. Economic literature predicts economic growth-enhancing activities of various core functions of government. However, excess government expenditure, in corrupt and undemocratic countries, may slow down the overall performance of the economy through rent-seeking activities, ineffectiveness and engaging in unproductive projects. The research objective is to analyze the role of democracy and corruption levels in the effects of government expenditure on economic growth in Kenya over the period 1990-2020. The generalized method of moments (GMM) framework was exploited to estimate the regression model. The findings indicate that government expenditure, corruption and democracy have positive and direct effects on economic growth through improvements in the efficiency of government expenditure. Besides, this study finds that corruption and democracy can have indirect negative effects on growth through deterioration of the efficiency of government expenditure. The study results suggest that government policies aimed at promoting democracy and controlling corruption can have direct positive effects on economic growth and indirect negative effects through their influence in the efficiency of government expenditure.
The study analyzes the relationship between private transfers, foreign direct investment (FDI) an... more The study analyzes the relationship between private transfers, foreign direct investment (FDI) and official transfers in Ghana. The research relies on the quarterly frequency time series data from the Ghana Statistical Service for the period 2003-2022. Phillips-Perron (PP) test and the Engle-Granger approach were used to investigate the properties of the data concerning unit roots and cointegration respectively. The ordinary least squares (OLS) regression technique and Granger causality test are used as methods of analysis. The research findings have shown that when private transfers and foreign direct investment increase, they are more likely to reduce official transfers. Furthermore, the study has confirmed that FDI and private transfer granger cause official transfers. So, the result appears to support the hypothesis that private transfers and foreign direct investment crowd out official transfers in Ghana. To boost commerce and interaction between Ghanaians and the outside world, stable and environmentally friendly conditions must be established.
The empirical studies have portrayed from a different perspective that technology, foreign direct... more The empirical studies have portrayed from a different perspective that technology, foreign direct investment (FDI), and economic growth have diverse outcomes on carbon dioxide (CO2) emissions. African economies specifically Kenya are currently threatened with more CO2 emissions for which proper strategies need to be adopted to reduce and mitigate this situation. To address this issue, the Autoregressive Distributed Lag (ARDL) technique was utilized, differentiating between the long-term and short-term effects of drivers of CO2. Granger causality was applied to analyze the causality between the series. The study uses time series data for Kenya from 1990 to 2022. The short-run and long-run results indicate a negative relationship between technology and carbon emissions. Specifically, an increase in technology reduces carbon emissions while an increase in economic growth and FDI inflow increases carbon emissions. The study has identified the negative nexus between technology and carbon emissions in Kenya. This means that technological innovation can increase labour productivity and utilization of resources, thereby reducing carbon emissions. Therefore, Kenya should increase research and utilization of low and efficient carbon technologies to decouple economic growth from environmental pollution. Based on the result, various strategies have been proposed, including using different clean Original Research Article
The unprecedented growth of mobile phones to make transactions has become a dependable form of pa... more The unprecedented growth of mobile phones to make transactions has become a dependable form of payment for low-income earners living in rural and urban Kenya, increasing demand for goods and services and stimulating demand for money. However, its effect on money demand and subsequent effect on monetary policy is inconclusive as observed from past empirical studies. Furthermore, the rapid adoption of mobile money has generated new data needs and growing interest in understanding its contribution to the money demand function. It is against this background that time series data and ordinary least squares technique are applied to review the effect of mobile money on the demand for money in Kenya for the period from 2007 to 2020. The results of the regression model indicate that an increase in mobile money leads to an increase in demand for money in the economy. The study has established that mobile money has a substantial influence on money demand growth in Kenya attributed to the low transaction cost and payment habits of Kenyans, they are more convenient than carrying cash and business people feel safe managing cash flow. The empirical estimates of this study imply that the central bank and the financial stakeholders need to put in place policies such as providing affordable smartphones, cheap mobile internet services, licensing new mobile operators and reducing tax on transaction costs to increase money transfer through money mobile systems.
The study investigates the relationship between foreign direct investment (FDI) and economic grow... more The study investigates the relationship between foreign direct investment (FDI) and economic growth in Kenya through comprehensive regression analysis and causality tests. Theoretical literature argues that FDI inflow can transfer great advantages to the host country, however, empirical studies show that the benefits of FDI vary greatly across countries. Kenya has traditionally been one of the largest recipients of FDI in Africa, foreign investors provide intangible assets to support the operation of the domestic firms. However, recently Kenya has experienced dwindling FDI levels. Despite an increasing empirical focus on the relationship between foreign inflow and the economy, little is known about the role of FDI in this nexus in Kenya. The study investigated the contribution of foreign direct investment to economic growth in Kenya using an Autoregressive Distributed Lag (ARDL) regression approach and causality tests. Secondary time series data for Kenya were used during empirical analysis. The time series data is from 1990 to 2021. The findings indicate that increasing FDI inflow will lead to an increase in economic growth. Additionally, the result indicates trade openness and climate change matter from a growth perspective. Notably, the results show that short-run to long-run foreign direct investment kindles economic
This study is a comparative analysis of Kenya and South Africa, the largest economies in Eastern ... more This study is a comparative analysis of Kenya and South Africa, the largest economies in Eastern and Southern Africa respectively, based on gross domestic product (GDP), energy use and carbon emissions. This study investigates the contribution of economic growth and renewable energy use on greenhouse carbon dioxide emissions in both country-level and group data, to observe their possible impact on environmental pollution. The present study addresses United Nations Sustainable Development Goal 13, to combat climate change and its impacts. To this end, this study is conducted in Kenya and South Africa using secondary data for the period 1990-2022. As an econometric strategy, we adopt the use of both panel and time series over the highlighted countries. The study employed an ARDL and PMG panel estimation approach to analyze the long-run relationship while Granger causality was conducted to confirm the short-run relationship between study variables. The empirical results show that economic growth and energy use significantly increase carbon emissions in South Africa, Kenya and aggregate data. Moreover, changes in industrial structure and urbanization have a mixed influence on carbon emissions in all models. Furthermore, short-run causality results point to a unidirectional relationship running from economic growth to carbon emissions in Kenya. In contrast, for South Africa, causality runs from carbon emissions to growth. In addition, for panel analysis, the study confirmed a bidirectional relationship. In conclusion, this comparative case study shows that countries with substantial growth in GDP and intensive energy use have high carbon emissions. Given these, the positive relationship poses a dilemma for Kenya and South Africa in their drive to achieve growth and at the same time manage environmental pollution. The empirical findings of this study imply that these countries should take all possible policy actions such as the massive investment and deployment of renewable energy, shifting gradually from non-renewable energy sources to renewable sources, a range of renewable energy sources, especially those that don't generate greenhouse gases, are needed, the use of climate finance to transition to clean
The study provides a focused analysis of Kenya’s determinants of debt sustainability owing to its... more The study provides a focused analysis of Kenya’s determinants of debt sustainability owing to its consistent budget deficits and higher debt servicing costs. Unlike broader studies, this research focuses on Kenya's unique economic conditions and talks about the consequences of unchecked debt servicing payment failures in Kenya that could undo macroeconomic progress if unchecked. The study deploys a single equitation regression analysis followed by a series of robustness checks and a generalized method of moments (GMM) technique to analyze the link for Kenya, 1990-2023. The regression results show that debt in Kenya is not sustainable, with factors such as an increase in debt stock, high-interest rate costs, increase in budget deficits, inflation rate increase and high depreciation of the local currencies ultimately wiping out the repayment potential of Kenya. However, the results show that increased export revenue earnings and faster economic growth can improve budget resources for debt servicing. Our findings suggest that policymakers in Kenya should focus on fiscal consolidation by reducing non-interest expenditures and enhancing revenue collections.
This manuscript investigates the impact of gender-focused foreign aid on income inequality in Eas... more This manuscript investigates the impact of gender-focused foreign aid on income inequality in East Africa, a topic with limited existing research. This research adds value by providing practical recommendations for policymakers to enhance the effectiveness of aid programs in fostering economic equity through targeted interventions. Using the Generalized Method of Moments (GMM) on panel data from three East African countries for over a decade provides robust evidence that gender-sensitive aid can significantly reduce income inequality. Our findings indicate that gendered aid, education and government expenditure were the driving force towards lower income inequality. Additionally, trade openness and inflation rates reduce income inequality in sampled countries, though insignificant. In contrast, the findings provide evidence that high economic growth tends to Original Research Article
A general conception is that investment induces economic growth, but there is still debate over w... more A general conception is that investment induces economic growth, but there is still debate over which type of investment contributes more to economic growth. The disaggregation of investment into public and private components allows estimation of the impact of the two types of investments on economic growth. This research, therefore, empirically estimates the relationship between each investment component against economic growth by constructing panel data for Ghana and Kenya from 1991 to 2022. The empirical strategy adopted in this study can be divided into three major stages. First, the LLC unit root test in the panel series is undertaken. Second, if integrated in the same order, a Kao co-integration test is conducted. Finally, if the series is co-integrated, the vector of cointegration in the long run is estimated using the dynamic ordinary least squares (DOLS) method. Our estimation results, based on the panel cointegration approach confirm a long-run relationship between the study variables. Further analysis shows that public investment can promote economic growth in the long run. In contrast, the results indicate that private investment can obstruct growth. The study has shown that private investment did not always increase economic growth in Ghana and Kenya. The study findings indicate that public investment is more efficiently allocated in Ghana and Kenya than private investment, suggesting the best economic strategy is for private investment to be complementary and promote higher public investment to improve public sector productivity. Therefore, policymakers should focus on creating a favourable investment climate, providing fiscal stimulus and promoting public-private partnerships to enhance infrastructure development and stimulate private-sector investment, which can sustain long-term economic growth.
The prospect of decoupling economic development from CO2 emissions in Ghana is examined in this p... more The prospect of decoupling economic development from CO2 emissions in Ghana is examined in this paper, with an emphasis on the manufacturing, export, and adoption of renewable energy sectors. The paper investigates the long-term and short-term correlations among CO2 emissions, renewable energy consumption (RNE), population growth (POP), manufacturing value-added (MVA), Economic growth (GDP), and exports (EXP) using an Autoregressive Distributed Lag (ARDL) bounds testing method using time series data from 1990 to 2020. The outcomes show that the variables are long-term cointegrating. Long-term GDP and CO2 emissions show a positive but negligible correlation, whereas exports show a negative and insignificant correlation. In the near term, using renewable energy has a markedly undesirable consequence on releases, yet, over time, the connection is positive and negligible. Because the turning point when economic expansion results in lower emissions is not apparent, the Environmental Kuznets Curve concept is not entirely substantiated. The report emphasizes how specific laws encouraging the use of renewable energy, environmentally friendly export and manufacturing processes, and technical advancements are necessary to help Ghana move toward a low-carbon economy.
The effect of fiscal decentralization on economic growth has majorly been investigated in develop... more The effect of fiscal decentralization on economic growth has majorly been investigated in developed countries in comparison to sub-Saharan countries. This study will focus on sub-Saharan state and specifically Kenya's 47 county governments created by the new constitution, to determine how fiscal federalism has influenced their economic opportunities. For this purpose, the study will investigate the effect of tax revenue and expenditure decentralization assignments on county economic growth. The study was informed by neoclassical Solow-Swan growth model. In this context, a panel series data of 47 Kenyan counties from 2013 to 2017 are analyzed by using panel ordinary least squares estimators. During estimation, panel unit root analysis was performed to avoid misleading conclusion. From estimation result, expenditure decentralization has a positive effect on sub national growth. However, on the second objective, tax revenue manifested a negative relationship with GCP growth. In this context, the study conclude that fiscal decentralization components could be one of the key policy choices for developing economies that are considering to experiment or to deepen their decentralization processes for economic growth.
This study adopted an endogenous model to analyze the potential role of corruption control in the... more This study adopted an endogenous model to analyze the potential role of corruption control in the impact of taxation on capital flight in East African countries. The study used the generalized method of moments (GMM) with panel data from 2009 to 2022 to estimate the study regression model. The estimation results show that taxation and corruption control have positive and direct impact on capital flight. While, the interaction between taxation and corruption control have a negative and indirect impact on capital flight. Therefore, countries with corruption control can compromise the impact of taxation on capital flight. Based on the findings, to maximize mobilization of tax income and reduce capital flight in East Africa, institutional changes aimed at combatting corruption and promoting good governance are essential.
The study aims to examine the impact of economic growth on female labour market participation in ... more The study aims to examine the impact of economic growth on female labour market participation in Kenya with data spanning between 1991 and 2022. Labour-force data disaggregated by gender are important to monitor the dynamic of gender inequalities in the labour market. The secondary data used to construct the time series was obtained from the World Bank and the International Labour Organization sources. The research was informed by the Feminisation U hypothesis, which describes the tendency of female labour force participation to first decline and then rise in the process of economic growth. The study used a fully modified ordinary least square (FMOLS) and Granger causality test to analyse the long-run effect of economic growth on women's participation in the labour market. The study results indicate that economic growth positively and significantly contributes to women's participation in the labour market in the long run. Furthermore, the results of the control variables suggest that education has a beneficial effect on women's workforce, while women's access to the workforce is hampered by male labour market participation, fertility rate, female self-employment and rate of urbanization. The study suggests to policymakers that the strategy to success is to facilitate education, vocational training, and social change that enable women to play the same role as men in the labour market. Finally, women must be in productive sectors and government should remove barriers to ownership of factors of production to encourage them to participate in economic activities and the labour market.
This study investigated the potential role of corruption and democracy in the expenditure-economi... more This study investigated the potential role of corruption and democracy in the expenditure-economic growth nexus. Economic literature predicts economic growth-enhancing activities of various core functions of government. However, excess government expenditure, in corrupt and undemocratic countries, may slow down the overall performance of the economy through rent-seeking activities, ineffectiveness and engaging in unproductive projects. The research objective is to analyze the role of democracy and corruption levels in the effects of government expenditure on economic growth in Kenya over the period 1990-2020. The generalized method of moments (GMM) framework was exploited to estimate the regression model. The findings indicate that government expenditure, corruption and democracy have positive and direct effects on economic growth through improvements in the efficiency of government expenditure. Besides, this study finds that corruption and democracy can have indirect negative effects on growth through deterioration of the efficiency of government expenditure. The study results suggest that government policies aimed at promoting democracy and controlling corruption can have direct positive effects on economic growth and indirect negative effects through their influence in the efficiency of government expenditure.
The study analyzes the relationship between private transfers, foreign direct investment (FDI) an... more The study analyzes the relationship between private transfers, foreign direct investment (FDI) and official transfers in Ghana. The research relies on the quarterly frequency time series data from the Ghana Statistical Service for the period 2003-2022. Phillips-Perron (PP) test and the Engle-Granger approach were used to investigate the properties of the data concerning unit roots and cointegration respectively. The ordinary least squares (OLS) regression technique and Granger causality test are used as methods of analysis. The research findings have shown that when private transfers and foreign direct investment increase, they are more likely to reduce official transfers. Furthermore, the study has confirmed that FDI and private transfer granger cause official transfers. So, the result appears to support the hypothesis that private transfers and foreign direct investment crowd out official transfers in Ghana. To boost commerce and interaction between Ghanaians and the outside world, stable and environmentally friendly conditions must be established.
The empirical studies have portrayed from a different perspective that technology, foreign direct... more The empirical studies have portrayed from a different perspective that technology, foreign direct investment (FDI), and economic growth have diverse outcomes on carbon dioxide (CO2) emissions. African economies specifically Kenya are currently threatened with more CO2 emissions for which proper strategies need to be adopted to reduce and mitigate this situation. To address this issue, the Autoregressive Distributed Lag (ARDL) technique was utilized, differentiating between the long-term and short-term effects of drivers of CO2. Granger causality was applied to analyze the causality between the series. The study uses time series data for Kenya from 1990 to 2022. The short-run and long-run results indicate a negative relationship between technology and carbon emissions. Specifically, an increase in technology reduces carbon emissions while an increase in economic growth and FDI inflow increases carbon emissions. The study has identified the negative nexus between technology and carbon emissions in Kenya. This means that technological innovation can increase labour productivity and utilization of resources, thereby reducing carbon emissions. Therefore, Kenya should increase research and utilization of low and efficient carbon technologies to decouple economic growth from environmental pollution. Based on the result, various strategies have been proposed, including using different clean Original Research Article
The unprecedented growth of mobile phones to make transactions has become a dependable form of pa... more The unprecedented growth of mobile phones to make transactions has become a dependable form of payment for low-income earners living in rural and urban Kenya, increasing demand for goods and services and stimulating demand for money. However, its effect on money demand and subsequent effect on monetary policy is inconclusive as observed from past empirical studies. Furthermore, the rapid adoption of mobile money has generated new data needs and growing interest in understanding its contribution to the money demand function. It is against this background that time series data and ordinary least squares technique are applied to review the effect of mobile money on the demand for money in Kenya for the period from 2007 to 2020. The results of the regression model indicate that an increase in mobile money leads to an increase in demand for money in the economy. The study has established that mobile money has a substantial influence on money demand growth in Kenya attributed to the low transaction cost and payment habits of Kenyans, they are more convenient than carrying cash and business people feel safe managing cash flow. The empirical estimates of this study imply that the central bank and the financial stakeholders need to put in place policies such as providing affordable smartphones, cheap mobile internet services, licensing new mobile operators and reducing tax on transaction costs to increase money transfer through money mobile systems.
The study investigates the relationship between foreign direct investment (FDI) and economic grow... more The study investigates the relationship between foreign direct investment (FDI) and economic growth in Kenya through comprehensive regression analysis and causality tests. Theoretical literature argues that FDI inflow can transfer great advantages to the host country, however, empirical studies show that the benefits of FDI vary greatly across countries. Kenya has traditionally been one of the largest recipients of FDI in Africa, foreign investors provide intangible assets to support the operation of the domestic firms. However, recently Kenya has experienced dwindling FDI levels. Despite an increasing empirical focus on the relationship between foreign inflow and the economy, little is known about the role of FDI in this nexus in Kenya. The study investigated the contribution of foreign direct investment to economic growth in Kenya using an Autoregressive Distributed Lag (ARDL) regression approach and causality tests. Secondary time series data for Kenya were used during empirical analysis. The time series data is from 1990 to 2021. The findings indicate that increasing FDI inflow will lead to an increase in economic growth. Additionally, the result indicates trade openness and climate change matter from a growth perspective. Notably, the results show that short-run to long-run foreign direct investment kindles economic
Devolution as a decisive factor for the future development, 2023
The modern devolution development across the world has been in part driven by
assertions of a sup... more The modern devolution development across the world has been in part driven by assertions of a supposed 'economic dividend' linked with economic and political devolution. There is, however, little empirical evidence to validate these assertions in African economies.
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Papers by naftaly mose
assertions of a supposed 'economic dividend' linked with economic and political
devolution. There is, however, little empirical evidence to validate these assertions
in African economies.