School of Business
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Item Relationship Between the Determinants of Foreign Direct Investment and Effects on Economic Growth in Kenya(KCA University, 2016) Gitari, Peris W.Foreign direct investment (FDI) plays important role in achieving rapid economic growth through bringing the latest technology and management know-how and bridging the gap between domestic savings and investment. Kenya has recently experienced a hit in foreign direct investment following a period of substantial decline of FDI inflows. The net FDI inflows in Kenya has been declining and also highly volatile despite friendly economic environment and improved polices implement to so as to attract and retain FDI and accelerate her economic growth and development. The study aims at investigating the relationship between the determinants of foreign direct investment and the economic growth of selected sectors in Kenya. The target population is the seventeen activities as listed in the Kenya facts and figures (KNBS, 2014). Theories applied in the study included; Market Imperfection Theory; Internalization Theory; Eclectic Paradigm and Solow Type Growth Theory. Descriptive research design was used while data collected covered a period of five (5) years from 2011 to 2015. Descriptive research design is adopted and census used. Secondary data was obtained from the Central bank of Kenya publications, the Kenya National bureau of statistics publications, International Monetary Fund (World Economic Outlook Database) publication and the World Bank (WDI. The study used panel data model which included dependent variable as economic growth while independent variables was market size, economic openness and cost of labour. Diagnostic tests included panel unit root test, multicollinearity, serial correlation, Heteroscedasctity and cross-sectional dependence test and due to violence of CLRM, Hausman specification test used to evaluate the aptness of either the fixed model or random model to be used was not done instead the model was fitted using Robust Standard Errors. The Ms-Excel and STATA was used to analyze the data.Item Relationship Between Financial Development Indicators And Stock Market Performance In Kenya(KCA University, 2019) Muriuki, Humphrey M.The study examined the relationship between financial development indicators and stock market performance in Kenya for the duration between 2004 and 2018. The purpose of the research was to determine whether there is a significant relationship between financial development indicators (depth, accessibility and openness) and stock market performance measured by market NSE 20 share index. Quarterly secondary data was used and sampled from the Central Bank of Kenya statistical reports and Kenya national bureau of statistics. Hypotheses were devised and examined using the Vector error correction mechanism modeling. The study concluded that financial development indicators have a significant impact on the stock market performance which is a key driver of economic growth in Kenya. Recommendations were made to promote and encourage stock market performance. The Central Bank of Kenya needs to adopt an expansionary monetary policy to increase money supply in the economy by reducing the level of real interest rates. There is need for the Capital Market Authority to encourage locals to venture in stock market. This can be done through educating investors and awareness campaigns. Local investors’ participation will foster stock liquidity and increase confidence to the stock market.Item The Relationship Between Foreign Inflows And Stock Market Performance In Kenya(Kca University, 2020) Butali, Ida N.The paper sought to investigate the relationship between foreign inflows and the performance of the stock market in Kenya over a 6-year monthly period from 2013 to 2018. The population of the study was the market capitalization for the Nairobi Securities Exchange for the period under study. In order to achieve the purpose of the study secondary data from all stocks that traded consistently from January 2013 to December 2018 was employed. Secondary data was collected from the Nairobi Securities Exchange, the World Bank website and the Capital Markets Authority website. The aim of this study was to examine empirically whether there exists a nexus connecting foreign inflows and the stock market performance of the Nairobi Security Exchange by use of the analytical tool STATA. Data stationarity was determined using ADF, and co-integration tests was conducted. An analysis of the cause and effect relationship between the variables was determined through the Granger causality test. The research conducted an analysis of the stocks market through market capitalization against the foreign inflows. The general objective was to determine the relationship between foreign inflows and stock market performance. The study found both short run and long run relationships between the stock market performance and two explanatory variables but no relationship between the explained variable and FDI. The results found that there was significant and negative relationship foreign debt and remittance. The study also established a positive but insignificant relationship between the dependent variable and foreign direct investments. Causality tests established that none of the variables granger-cause the dependent variable. The study recommended that the government monitors the foreign inflows as they have a negative relationship with the performance of the stock market.