The Effect of The Size of the Informal Sector on Economic Growth in Kenya (1974 to 2016)

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dc.contributor.authorOpondo, Mary Awuor
dc.contributor.authorEtyang', Martin N.
dc.contributor.authorOkeri, Susan
dc.contributor.authorNjuguna, Angelica
dc.date.accessioned2020-11-25T12:46:33Z
dc.date.available2020-11-25T12:46:33Z
dc.date.issued2019
dc.descriptionResearch Article Published in International Journal of Social Science and Economic Researchen_US
dc.description.abstractThe Kenyan economy is dual and predominantly informal. The size of the sector in the country has grown over time. The sector employed 19 percent of the total workforce in 1974 which increased to 84 percent in 2016. The country targets economic growth averaging 10 percent per annum, and a reduction in poverty rates to 28 percent of the total population by the year 2030. Efforts to develop the sector for economic growth, employment creation and poverty reduction can be traced to the period 1986, under the Sessional Paper No.2 of 1986 on Economic Management for Renewed Growth. The growth of the informal sector in the country has led to a marked increase in employment numbers, but not much is known about the effect on the other two objectives, which are economic growth and poverty reduction. Reports on the contribution of the sector to economic growth are largely conflicting with limited econometric studies. The study analyzed the relationship between the size of the informal sector and economic growth in Kenya. A growth accounting exercise was conducted using the standard Cobb-Douglas production function. From the study findings, the informal sector is the lowest contributor to output growth in the country. Given the size of the sector the study concludes that there is a need to target increased productivity in the informal sector for increased economic growth.en_US
dc.identifier.citationInternational Journal of Social Science and Economic Research Volume: 04, Issue: 06 "June 2019"en_US
dc.identifier.issn2455-8834
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/20996
dc.language.isoenen_US
dc.publisherInternational Journal of Social Science and Economic Researchen_US
dc.subjectThe informal Sectoren_US
dc.subjectEconomic growthen_US
dc.subjectGrowth accounting.en_US
dc.titleThe Effect of The Size of the Informal Sector on Economic Growth in Kenya (1974 to 2016)en_US
dc.typeArticleen_US
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