Determinants of Sustainable Development in Kenya
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Date
2017
Authors
Kaimuri, Belinda
Kosimbei, George
Journal Title
Journal ISSN
Volume Title
Publisher
IISTE
Abstract
This study investigated the determinants of sustainable development in Kenya using annual data for Kenya for
the period of 1991 to 2014. Adjusted net savings rate (ANSR) was used as a proxy sustainable development. The
study used the autoregressive distributed lag model (ARDL) for the analysis and the bounds test for
cointegration to test whether a long run relationship exists between the study variables - household consumption
per capita, unemployment rate, resource productivity, energy efficiency, real gross domestic product per capita
and terms of trade. The main result from the study was that a long run relationship exists between the variables.
Secondly, the estimated coefficients of household consumption per capita negatively impacts sustainable
development in the long run while unemployment rate and energy efficiency both negatively influence
sustainable development in the short run. Resource productivity, real gross domestic product per capita and
terms of trade are insignificant in determining sustainable development. The results suggest that developing the
economy while stimulating savings and promoting a contractionary fiscal policy on public deficits will promote
sustainable development.
Description
A Research Article in the Journal of Economics and Sustainable Development
Keywords
Sustainable development, Adjustable net savings rate, ARDL
Citation
Kaimuri, B., & Kosimbei, G. (2017). Determinants of sustainable development in Kenya. Journal of economics and sustainable development, 8(24), 17-36.