RP-Department of Economic Theory

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Browsing RP-Department of Economic Theory by Author "Kosimbei, G. K."

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    The effects of financial repression on economic growth in Kenya.
    (Asian Society of Business and Commerce Research, 2015) Gitau, Gabriel K.; Kosimbei, G. K.
    Financial repression refers to the notion that a set of government regulations, laws, and other non-market restrictions prevent the financial intermediaries of an economy from functioning at their full capacity. The study sought to investigate the effect of financial repression on economic growth in Kenya. The target population of this study is the entire economy of Kenya. The Data was analyzed through the use E-views. The dependent variable under investigation was Economic Growth as measured by GDP while independent variables were elements of financial repression and included Interest rate ceilings, High bank reserve requirements, Broad Money (M3), Government Borrowing. The period covered under this study was 1996 to 2043 and utilized quarterly Secondary time series data. A descriptive research design was adopted. The study used an OLS regression equation and tested the values at 5% significance level and found evidence that Interest rate ceilings was negative and significantly related to economic growth (t-value -3.76), Broad Money was found to be negative and significantly related to economic growth (t-value -3.71 ). The study also found that government borrowing was negative and significantly related to economic growth (t-value -4.61), on the other hand High bank reserve requirements were found to be positive and insignificant related to economic growth.
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    Effects of regional integration on economic growth of East African community
    (IJECM, 2015-11) Muriuki, Tina K.; Kosimbei, G. K.
    This study looks into regional integration and how economic growth has affected it. Regional integration enables partner states to come together and form a group where they could promote economic and political cooperation among themselves. African countries have evolved from colonized and struggling nations to a new phase of independence. In this paper, the researcher examined the history of regional integration in East African Community, what motivated it, the different initiatives that EAC governments had pursued to improve regional integration, the nature of the integration process, and the current challenges. This paper examines empirically whether and how regional integration has affected economic growth amongst the EAC partner states. Panel data was carried out over the period of 1977-2014 for all the EAC partner states. In the findings, Terms of Trade and Foreign Direct Investments had a significant positive correlation with Gross Domestic Product growth, Exchange Rate had a significant negative correlation with Gross Domestic Product growth and Inflation Rate had insignificant negative correlation with Gross Domestic Product growth.
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    Public debt and economic growth in the East African Community.
    (Global Research Society, 2015-08) Kosimbei, G. K.; Kwoba, Pauline L.
    Public debt is among the main macroeconomic indicators that constitutes a country’s image in international markets and is an inward foreign direct investment flow determinant. A sound public debt management leads to economic growth and stability by mobilizing resources with low borrowing costs as well as limiting the financial risk exposure. The main objective of the study was to analyze the impact of public debt on economic growth in the East African community. Economic growth measured by GDP per capita growth was the dependent variable while gross fixed capital formation, labor force and public debt (both external and domestic) were explanatory variables. The study examined data for 24 years from 1990-2013 for EAC countries. Random effects model was adopted as per the results of the Hausman test. External debt was found to have a negative significant effect on economic growth while Gross fixed capital formation had a positive significant effect on economic growth. The study recommends that relevant policies that enhance gross capital formation and promote reduction of debt burden be adopted for sustainable growth in the EAC.