Foreign Direct Investment, International Trade And Economic Growth in Kenya

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dc.contributor.authorMaranga, Jared Nchogu
dc.date.accessioned2016-07-04T08:39:16Z
dc.date.available2016-07-04T08:39:16Z
dc.date.issued2015
dc.descriptionA Research Project Submitted to the Department of Applied Economics in Partial Fulfillment of the Requirements for the Award of the Degree of Masters in Economics (International Trade and Finance) of Kenyatta University, November 2015.en_US
dc.description.abstractForeign Direct Investment and international trade have remained vital for many governments, with a number of pol icies put in place to promote them. This is due to the theoretical provisions which have pointed that any increase in foreign direct investment and international trade has positive and significant effects on the economic growth of the host country. Based on these theories a number of empirical studies have been carried out to determine the effects of foreign direct investment and international trade on economic growth in the host countries including Kenya. However, findings from the respective studies have presented mixed findings and as such no clear conclusion has been drawn. Therefore the objective of this study is to determine the effects of foreign direct investment and international trade in Kenya following continued implementation of policies geared towards attracting foreign direct investment and promotion of international trade. Secondary data obtained from World Bank Development Indicators, statistical abstracts and economic surveys was analysed. The study used the autoregressive distributed lag approach in regressing real gross domestic product growth on foreign direct investment, exports, imports, tax revenue and external debts for the period 1970-2013. From the results the foreign direct investments and natural logarithm of exports in gross domestic product of Kenya have a positive and significant effect on economic growth. On the other hand the results show that; imports, lagged value of tax revenue and external debt stock as components of gross domestic product had a negative and significant effect on economic growth. From the findings it is evident that the government should consider pursuing policies geared towards promoting foreign direct investments following the fact that it has a positive effect on economic growth. Equally, it is evident that exports play a vital role in boosting Kenya's economic growth and as such any policies put in place by the government to make Kenya's exports competitive should be encouraged. However, there is need for government to control its external borrowing owing to the fact that the results show that external debt as a component of gross domestic product has a negative and significant effect on economic growthen_US
dc.description.sponsorshipKenyatta Universityen_US
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/14820
dc.language.isoenen_US
dc.publisherKenyatta Universityen_US
dc.titleForeign Direct Investment, International Trade And Economic Growth in Kenyaen_US
dc.typeThesisen_US
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