School of Business
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Item Effect Of External Debt And Inflation On Economic Growth In Kenya(KCA University, 2013) Osewe, Vincent.The state of economic growth in Kenya has been fluctuating over time as a result of various factors. This study was carried out using external debt and inflation rates as some of the variables which can impact economic growth. The purpose of this research was to investigate the effect of external public debt and inflation in Kenya. It also aimed at identifying other factors that can affect economic growth in Kenya. The specific objectives for the research were to determine the effect of external public debt level on economic growth in Kenya, analyze the effect of inflation on economic growth in Kenya and to establish whether external public debt level and inflation cause economic growth in Kenya. The methodology used during the research included secondary data from International Monetary Fund (IMF), International Financial Statistics (IFS) and Central Bank of Kenya (CBK) data. The study used econometric models in establishing the relationship among the variables. Johansen Cointegration test, Granger causality test and Vector Error Correction model were used using STATA statistical software. The research found that external debt and inflation had no impact on GDP and that there exists a cointegrating relationship among these variables hence they are moving together in long run. The test for granger causality indicated that there was no causal linkage among the variables.Item Effect Of Foreign Inflows On The Economic Growth Of East African Member Countries(KCA University, 2020) Ringera, Peninah M.The main objective of this study was to investigate the effect of foreign inflows on economic growth of East African Community countries. Three independent variables including foreign direct investment, personal remittance and external debt were reviewed to evaluate their effect on gross domestic product of EAC countries. The specific objectives for this study were to evaluate the effect of external debt on economic growth of East African Community countries, assess the effect of foreign direct investment on economic growth of East African Community countries and investigate the effect of remittances on economic growth of East African Community countries. Theories applicable to the study such as debt overhang theory, internationalization theory and utility theory were reviewed. To accomplish the study objective, Pooled Ordinary Least Squares model was recommended based on model estimation performed for panel data of three countries using Hausman test and Breasch –Pagan LM tests. The target population sample size was three East African Community member countries that signed into the union in 1993 and they include Kenya, Uganda and Tanzania. A panel data covering a period of 20 years from 1999-2018 was used. Rwanda and Burundi acceded the treaty agreement in July 2007 while South Sudan joined in April 2016. Data was obtained from World Bank’s African Development indicators, reports from bureau of statistics from each of the countries, data from central bank for each of the countries and information published on the website. This study concludes that foreign direct investment has significant impact on gross domestic product of East African Community Countries. Foreign direct investment therefore, is one of the foreign inflows that has an effect on economic growth of East African Community Countries. The results from this study also found the coefficient for remittance was positive but statistically insignificant. The results from this study found that external debt negatively affect the gross domestic product of East African Community countries. More studies would also be recommended to investigate the negative effect on gross domestic product for East African Community countries by external debt. Little or no research has been conducted to investigate the existence of debt overhang or debt crowding out effect specifically in East African Community countries. Further research is recommended as this would give more insights to East African Community countries on how to deal with external debts to avert the negative effect on economic growth and development.