The Link between Expansionary Fiscal Policy and Resilience to Covid-19 Economic Shocks in Kenya: Evidence from Nairobi City County
Loading...
Date
2023
Authors
Orori, Moses O.
Muthinja, Moses M.
Journal Title
Journal ISSN
Volume Title
Publisher
FORCE
Abstract
This study examines the nexus between expansionary fiscal policy and
resilience to COVID-19 economic shocks in Kenya. We focus on two
instruments of fiscal policy namely; public expenditure and public revenue from
taxation. The study is on Nairobi City County, Kenya’s largest county by
population size and contribution to the country’s Gross Domestic Product (GDP).
With a target population of two million economically active individuals, the study
uses a sample of 110 respondents drawn from all the 17 constituencies in the
county using quota sampling. Using multiple regression, increased public
expenditure leads to a slight increase in resilience to COVID-19 economic
shocks while decreased taxation does not lead to an increase in resilience to
COVID-19 economic shocks, thus our findings suggest that increased public
expenditure and reduced taxation during the pandemic period in Nairobi City
County had minimal implications on the resilience to covid-19 economic shock in
Nairobi City County.
Description
Article
Keywords
Economic shocks, Expansionary Fiscal Policy, COVID-19 Pandemic, Resilience
Citation
Orori, M., & Muthinja, M. M. (2023). The Link between Expansionary Fiscal Policy and Resilience to Covid-19 Economic Shocks in Kenya: Evidence from Nairobi City County. FORCE: Focus on Research in Contemporary Economics, 3(2), 345-355. Retrieved from https://www.forcejournal.org/index.php/force/article/view/48