RP-School of Economics

Permanent URI for this community

https://repository.ku.ac.ke/handle/123456789/1307

Browse

Browsing RP-School of Economics by Author "Gachanja, Paul"

Now showing 1 - 5 of 5
  • Thumbnail Image
    Item
    Dynamic relationship between the housing prices and selected macroeconomic variables in Kenya
    (Stratford Peer Reviewed Journals and Book Publishing, 2018-08) Njaramba, Stephen Githae; Gachanja, Paul; Mugendi, Charles
    In Kenya housing prices are considered high and have still continued to rise. This has made housing affordability and access a preserve of the top income earners. Consequently, large population live in houses with reduced access to clean water, sanitation, unreliable and unhealthy energy sources, increased exposure to diseases and low levels of financial security. Arable land is also being converted to residential centers which is constraining on public goods provision and agricultural output. Housing prices behavior have been known to influence business cycle dynamics by affecting aggregate expenditure and also the performance of the financial system through their effect on the profitability and stability. This study examined the dynamic relationship between housing prices and selected macroeconomic variables in Kenya. In doing this, the study used time series data for the period 1960 to 2015 and VAR models. The VAR models were selected where Toda and Yamamoto (1995) methodology was used. This is a modified version of granger causality test based on augmented VAR modeling. The study findings indicate that the housing prices dynamically relate with the selected macroeconomic variables. The study therefore concludes that housing prices have a positive contemporaneous impact on the selected macroeconomic variables indicating the existence of mutually reinforcing cycles between the housing prices and the selected macroeconomic variables. Therefore, there is need to observe the housing prices movements to avoid the cost that could result in case of instability in the housing market.
  • Thumbnail Image
    Item
    Factors influencing micro and small enterprise’s decision to innovate in Kenya
    (Springer Nature, 2018-12-08) Njiraini, Peter; Gachanja, Paul; Omolo, Jacob
    An enterprise’s propensity to innovate has been recognised to have an important bearing on its performance. In Kenya empirical work on micro and small enterprises (MSEs) propensity to innovate is still nascent in spite of the pivotal role played by these enterprises in the economy. The current paper used a Probit econometric model to analyse factors that influence MSE’s decision to innovate or not. Results from the analysis show that the average number of years of education for a production worker, physical capital intensity, age of an MSE, access to finance and size of an MSE are important factors influencing MSEs innovation decisions. Higher foreign ownership and manager’s experience were found to act as hindrances towards MSEs’ decision to innovate. Based on the study findings it is clear that human capital skills and an MSE’s resource endowment positively influences MSEs innovativeness. From a theoretical perspective, there is need for skills segmentation to isolate human capital skills that are most relevant for stimulating MSEs innovative activities. Firm level and policy level strategies are also needed to improve the technical skills of the average MSEs’ production workers across the country. Subsidisation of physical capital and financial services for MSEs should also be used to promote these enterprises innovativeness.
  • Thumbnail Image
    Item
    Innovation and Micro and Small Enterprises Growth Performance: Evidence from Kenya
    (International Organization of Scientific Research, 2018-10) Njiraini, Peter; Omolo, Jacob; Gachanja, Paul
    The role that innovation can play towards the growth and survival of an enterprise continues to gain credence as better indicators of enterprise innovativeness come to the fore. In spite of this growing body of knowledge, micro and small enterprises in Kenya continue to experience high mortality rate. This paper used World Bank Enterprise Survey data for Kenya to probe whether innovative micro and small enterprises are indeed associated with better growth performance. The study used a qualitative analysis using a descriptive analysis and t-test for mean differences to compare innovative and non-innovative micro and small enterprises. The results show that there was no statistically significant relationship between a micro and small enterprise’s growth performance and its innovativeness. Innovative micro and small enterprises were, however, found to have invested relatively higher resources towards innovation inputs and hiring of advanced human skills. They also participated in export trade. The results seems to suggest that innovative micro and small enterprises’ investment were either too marginal to make a difference or the investments dissipated along the innovation chain.
  • Thumbnail Image
    Item
    Innovative adaptation and operational efficiency on sustainable competitive advantage of food and beverage firms in Kenya
    (European Centre for Research Training and Development UK (www.ea-journals.org), 2015-02-24) Gachanja, Paul; Minja, David; Mutunga, Stephen Laititi
    The idea that an organization’s members are the real source of its competitive advantage has long been acknowledged. The significance of human capital as a determinant of firm performance is gaining recognition in the strategic management literature, and the need for relating employee talent to a firm’s competitive advantage is continuing to develop in the human resource management arena hence the drive to establish superior human capital to generate competitive advantage Many firms have explicitly embraced competitive strategies to gain and maintain a lead in their industries. In all the competitive strategies firms have engaged in, human capital has been the driver of competition. This study endeavoured to empirically test the effects of human capital and especially in innovation and operational efficiency in according food and beverage firms the requisite competitive advantage in the very dynamic industry. the study sought to answer the following research question: What are the effects of human capital (in innovative adaptation and dynamic operational efficiency) on firms’ ability to attain sustainable competitive advantage within the F & B companies in Kenya? This research entailed a descriptive study design. This study sought to do that among the F & B firms in Kenya. The study was concerned with describing the characteristics of a unique group of food and beverage firms and their competitiveness. From the study, 87 percent of respondents indicated concurrence on usefulness of human resources for SCA. Kenyan firms in the food and beverage industry therefore highly regard human capital as a major contributor to sustainable competitive advantage. The study established that internal processes largely rely on how capabilities are harnessed for competitive advantage.
  • Thumbnail Image
    Item
    The sources of housing prices growth in Kenya
    (International Peer Reviewed Journals and Books (IPRJB), 2018) Stephen Githae Njaramba, Stephen Githae; Gachanja, Paul; Mugendi, Charles
    Purpose: The objective of the study was to analyze the sources of housing prices growth in Kenya Methodology: The study used time series data for the period 1960 to 2015 and adopted an ARDL modeling approach. The model was useful as housing prices behaves differently from other goods’ prices, and as such, previous values of housing prices were necessary in estimations. The model also suited for small sample size and for its capacity to estimate short-run and long-run dynamics. The ARDL model also distinguishes dependent and explanatory variables. Results: The study findings showed that the sources of housing prices growth included household consumption expenditure, construction cost and property taxes both in the short-run and long-run. Private capital inflows and households’ indebtedness have a positive transitory effect to the housing prices. Against the popular view, supply of housing have no effect on housing prices. Unique contribution to theory, practice and policy: The Kenya National Housing Corporation needs to make public and encourage the use of readily available alternative building material besides the conventional material while not compromising on quality to address the overreaction of housing prices.