MST-Department of Applied Economics
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Browsing MST-Department of Applied Economics by Author "Etyang, Martin N."
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Item Determinants of investment demand in the informal sector: A case study of shoe making in Kibera, Nairobi(2012-04-05) Oketch, T. C.; Etyang, Martin N.; Oloo, K. O.The informal sector has an important role to play towards the industrialization process and generation of employment opportunities. The sector provides to potential employees for both the informal and formal sectors, thereby helping to improve the quality of life to those who would otherwise be without any source of livelihood. Also, the informal sector has a capacity to mobilize investments and produce affordable goods and services to the ever-increasing population. For these reasons, various stakeholders are targeting the sector so as to enhance the potential benefits. Despite these efforts, the sector has not become the expected solutions to Kenya's developmental problems. The concern of this study was to investigate the determinants of investment in the informal shoe-making sub-sector in Kibera area of Nairobi Province. Data was collected from a sample of 40 shoemakers in the area. Both linear and log-linear multiple regression models were specified and estimated and the results interpreted based on the log-linear model, which was adopted as the suitable one for analysis because it had more significant variables, and higher R2 and F-statistics. The results suggest that output of the firm; price of investment goods, entrepreneurs' dependants and of investment in the sub-sector. Contrary to a prior expectations, the coefficients of transfer payments, training, accessibility of the enterprise was negative. Further, the study found that none of the respondents had benefited from the assistance package provided by the government, donors, and other stakeholders. Thus, these shows that the promotion services aimed at the sector do not reach the entrepreneurs in the sub-sector. This paves way for various policy recommendations.Item Stock Market Liberalization, Stock Market Performance and Economic Growth in Kenya(2014-03-07) Kinuthia, Isaac Kimunio; Etyang, Martin N.The study empirically examined whether stock market liberalization, by improving the functioning of domestic stock market accelerates economic growth in Kenya. The study also evaluated the nature of the relationship between stock market performance and economic growth in Kenya. The stock market liberalization and performance were measured using two variables namely stock market size as measured by stock market capitalization and stock market turnover respectively. The study used quarterly time series data collected through secondary sources and covered a period .of 22 years from January, 1991 to December, 2012. The study utilized econometric techniques of Vector Autoregressive (VAR) and Granger Causality Tests to explore the relationships. The empirical results showed a uni-directional causal link that runs from stock market development to economic growth and there is evidence of an indirect transmission mechanism through the effect of stock market development on investment. The study found that stock market liberalization has a significant positive impact on the economic growth in Kenya. There is a strong case for policy recommendation to further develop the stock market as a driver of economic performance in Kenya.