Browsing by Author "Gitau, Alex Gicini"

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    Disaggregated Government Expenditure and Manufacturing Sector Performance in Kenya
    (Kenyatta University, 2024-03) Gitau, Alex Gicini
    Manufacturing sector is a key sector that promote development through; contribution to Gross Domestic Product, employment generation, value addition, diversification, industrialization and technological innovations. The government has spent significant amount resources to boost the growth of the manufacturing sector. The need for growth in this sector picked momentum in the early 60s. Policies like: the Import substitution in 1963; National development plan in 1970; Structural Adjustment Programs in the 80s; the Vision 2030 in 2008 and the Big Four Agenda in 2017, as well as increased government expenditure in the sector have been implemented to spur performance in the sector. Despite the policy implications and increased disaggregated government expenditure, the conduct of the manufacturing sector as shown by its value added experienced significant growth in the initial three decades after independence, after which it plateaued to 9 percent. It is against this backdrop that the research aimed to uncover the effects of disaggregated government spending in manufacturing sector on manufacturing sector performance in Kenya. The specific objectives of the study were to: determine the effect of government’s recurrent expenditure in manufacturing sector on the sector’s performance in Kenya, determine the effects of government’s development expenditure in manufacturing sector on the sector’s performance in Kenya and to determine the impact of total government expenditure in manufacturing sector on the sector’s performance in Kenya. The study used time series data from 1984 to 2021 for selected variables namely government recurrent and development expenditures in manufacturing sector, interest rates, inflation, exchange rates, Gross Domestic Product and manufacturing value added. An Auto Regressive Distributed Lag Error Correction Model was used to determine short run and long run relationship between variables after appropriate time series test were conducted. The study found a positive relationship between disaggregated government expenditure and manufacturing sector performance. The study therefore recommended that, to achieve a rapid economic growth and sustainable development through the Kenya manufacturing sector, the government of Kenya should optimally allocate expenditure to the sector
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    Government Capital Expenditure and the Manufacturing Sector’s Output Performance in Kenya
    (The International Journal of Humanities & Social Studies, 2024-04) Gitau, Alex Gicini; Okeri, Susan O.
    The manufacturing sector is named as a key sector that promotes development through contribution to Gross Domestic Product, employment generation, value addition, diversification, industrialization and technological innovations. The government of Kenya has spent a lot of resources to boost the growth of the manufacturing sector. The need for growth in this sector picked momentum in the early 60s. Policies like the Import substitution in 1963- 1970, Structural Adjustment Programs in the 80s, the Vision 2030 in 2008, the Kenya Industrial Transformation Program in 2015, and the Big Four Agenda in 2018 have been implemented to spur growth in the sector and to turn Kenya into an industrial middle-income economy. Much emphasis has since been placed on spending by increased government expenditure towards the manufacturing sector to improve the overall performance. Despite all, the conduct of the manufacturing sector, as shown by the sector's contribution to the Gross Domestic Product, only increased substantially in the first three decades after independence, after which it stagnated to below 9 percent to date. The purpose of the study was to find out the effect of government capital expenditure in the manufacturing sector on the sector's performance. The Autoregressive Distributed Lag Error Correction model was used to achieve the objective of the study. The study found out that public resources were allocated to the manufacturing sector. Further, the study found out that government capital expenditure significantly contribute to growth of the manufacturing sector. Recurrent expenditure was also statistically significant in explaining changes in the manufacturing sector performance