School of Business and Economics: Recent submissions
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Muriithi, Samuel Muiruri; Kenyon, Wendy (Biodiversity and Conservation, 2002)[more][less]
Abstract: Using an economic approach to provide a rationale for rainforest conservation has been a popular exercise in recent years. This paper uses such an approach to assess the net value of the Arabuko Sokoke Forest in Kenya. The economic benefits associated with the forest derived by local and global populations are estimated by combining evidence from existing studies and the results of a contingent valuation study carried out by the authors. These benefits are set against the cost of preserving the forest to the Kenyan Forest Department. Even when the opportunity cost of the forest land is omitted from the costs of forest preservation, and when the revenues generated from the Global Environment Facility (GEF) funded project are included, the costs of forest conservation outweigh the benefits. It is only when non-use and existence values are included (which are not realised by the Kenyan population) that the forest benefits exceed the costs. The paper concludes by arguing that, although some projects within the Arabuko Sokoke Forest have been successful in capturing some of the economic value associated with the forest, more needs to be done to design additional capture mechanisms so that a greater proportion of the global benefit of the forest can be realised by local populations and local governments URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3655 Files in this item: 1
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Muriithi, Samuel Muiruri; Ndegwa, Catherine; Juma, Joy (The International Journal Of Humanities & Social Studies, 2018)[more][less]
Abstract: Small businesses play a vital role towards world economic development as they contribute between 40% to 50% of national Gross Domestic Product (GDP) as well as 70% to 90% of employment. However, besides their critical role, small business failure rate is alarming, ranging between 50% and 95% in their early years of existence. To reverse this trend, business incubators have provided required build capacity to start-up entrepreneurs and innovators thereby assuring their survival and growth. Having their roots in the 1950s and 1960s, business incubators have offered mentorship, skills building, technical support, training, facilities and venture capital. Globally there are over 7,000 incubators concentrating in various fields from science, economics, technology, marketing to business management. The success rate of businesses incubated is evident with 84% of graduates settling permanently in the community where they start businesses. The success rate of incubated businesses is evident in different countries such as New Zealand (87%), United States of America (85%) and Germany (90%) while South Africa and Brazil both have 80% success rate. Besides the success rate of businesses incubated, the failure rate of incubator businesses is alarming being as high as 90%. The failure is associated with lack of professional management, no sustainable growth plans, inappropriate technology and funds misappropriation. However, having played the role of the missing linking between business failure and success, incubators cannot be neglected. The purpose of this paper is to explore the roles of incubators, benefits, challenges and keys for their success. Based on empirical research, this paper gives an overview of the current state of incubators worldwide and their difficulties. The paper concludes with a case study of the National Environment Trust Fund (NETFUND) Incubation Centre which is a government initiative that has successfully support the development and promotion of green enterprises. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3654 Files in this item: 1
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KoangYiek, Gordon; Irungu, Dancan Njagi; Mwamba, Dorcas (Journal of Strategic Management, 2017)[more][less]
Abstract: Training and development strategy is not given high priority in organizations. In public institutions, problem related to facility, participants, administration, lack of seriousness on the parts of the trainees, trainers, lack of communication with the superiors on training and different expectations from training are major obstacles which can create negative progress about training. Amidst the shortcomings there are numerous benefits that can be accrued through training and development and employee productivity, employee satisfaction, organizational efficiency and effectiveness. The purpose of this study was to assess the effect of training and development strategies on Organizational performance in Central Bank of South Sudan, Juba. Objective of the Study were; to establish training and development strategies that have been adopted by Central Bank of South Sudan. The research was conducted at Central Bank of South Sudan which is situated in Juba. The data was obtained from employees of the bank from both the management and Staff from different departments. The descriptive research design was used in the study. The target population was 111 employees while the sample population was 41 employees. The findings showed that several training and development strategies have been adopted by the Central Bank of South Sudan. The study recommends that evaluation of the training methods should be done before the training is given so that the impact of the training on performance is measured. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3653 Files in this item: 1
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Irungu, Dancan Njagi; Marwa, Simmy Mwita; Ndegwa, Joyce Watetu; Kalei, Anne Favor Mumbua Wambua (International Journal of Economics, Commerce and Management, 2015)[more][less]
Abstract: The main objective of the study is to determine the influence of key decision maker attributes on the internationalization of medium sized firms. Key decision maker attributes have been underscored in much internationalization literature across different contexts as a principal feature that facilitates the process of Medium Enterprises internationalization. Medium enterprises play a significant role in creating a strong economic base to any country since they greatly contribute to employment creation. There is overwhelming evidence from the literature that the key decision maker plays a huge role in the internationalization of Medium enterprises. International entrepreneurship theory is the main theoretical framework which informs the study. The main variables that are examined in the study include key decision maker education, international experience and international business vision. Descriptive research design has been used in the study. The key CEOs of the Top 100 medium sized companies in the category of 2012 were the respondents of the study. The results of the study indicate that key decision maker attributes plays a significant role in the internationalization process of medium sized firms. The study concludes that the key decision maker is a major determinant of the firm’s ability to grow from the domestic market and internationalize its operations. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3652 Files in this item: 1
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Mwangi, Alfred K.; Irungu, Dancan Njagi (International Journal of Economics, Commerce and Management, United Kingdom, 2016)[more][less]
Abstract: The purpose of this paper is to examine how the culture of strategic planning has made Equity bank to remain at the top of microfinance banking in Kenya, Africa and the world. Equity Bank has revolutionized the banking concept in Kenya and has made banking accessible to majority of the Kenyan and East African population. The bank has done well where others have failed especially on reaching out to the bottom of the pyramid segment. Equity bank has a very strong institutional culture of strategic planning that has helped in its growth and expansion. The employees in the bank treat their jobs like a calling to liberate the people of Africa and its either you fit or you don’t fit in that culture. This culture has seen employees giving their best in terms of time and energy which has seen the company record excellent performance over the years. The study used descriptive research design. The target group was the middle level managers in the Bank. Semi-structured questionnaires and key informant interviews were used as the instruments for data collection. Data was presented by the use of both descriptive and inferential statistics. The study revealed that Equity Bank had several strategic management practices which touched on formulation, implementation and evaluation. These included selfassessment, competition analysis, resource allocation, strategic management procedures. The bank had a very strong organizational culture which it leveraged on to push the strategic agenda. The study concludes by retaliating that adoption of strategic planning practices and institutionalization of a supportive institutional culture are great drivers of organizational performance. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3651 Files in this item: 1
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Kitawi, Caroline Njambi; Irungu, Dancan Njagi (International Journal of Economics, Commerce and Management, 2015)[more][less]
Abstract: The main objective of this study is to find out the role of church owned businesses on sustainability of the church. Church organizations have over the years been faced with many challenges for survival and sustainability. As such, many churches today have ventured into businesses with an objective of enhancing their going concern. This move has been received with mixed reactions with some churches perceiving it as a good initiative for self-reliance while others perceiving it as an endeavour which is not within the church mandate. The study adopted descriptive research design. For primary data collection, questionnaires were administered and interview conducted. Descriptive statistics were used to present the findings. The results of this study indicate that church businesses do contribute to the sustainability of the church. The financial stability also implies that the church is put in a good position to achieve its biblical mandate in terms of reaching out, evangelising and also supporting the needy in the society. The study concludes that church businesses play a critical role in promoting sustainability of its operations. However, precaution has to be exercised so that the core mandate of the church which is about reaching out with the message of the gospel of Jesus Christ throughworship, discipleship, evangelism, missions and social action is not compromised at the expense of business pursuit. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3650 Files in this item: 1
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Bowen, Michael; Mureithi, Samuel (KCA Journal of Business Management, 2009)[more][less]
Abstract: Small and Micro Enterprises (SMEs) play an important economic role in many countries. In Kenya, for example the SME sector contributed over 50percent of new jobs created in 2005 but despite their significance, SMEs are faced with the threat of failure with past statistics indicating that three out five fail within the first few months. This study sought to understand how SMEs manage the challenges they face. These challenges seem to change (evolve) according to different macro and micro conditions. This study employed stratified random sampling to collect data from 198 businesses using interviews and questionnaires. The data was analysed descriptively and presented through figures, tables and percentages. The findings indicate that SMEs face the following challenges; competition among themselves and from large firms, lack of access to credit, cheap imports, insecurity and debt collection. Credit constraint seems to be easing up when compared to previous researches. Relevant training or education is positively related to business success. The SMEs have the following strategies to overcome the challenges; fair pricing, discounts and special offers, offering a variety of services and products, superior customer service and continuously improving quality of service delivery. The research concludes that business success is a consequence of embracing a mix of strategies. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3649 Files in this item: 1
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Kangogo, Jonah; Guyo, Wario; Bowen, Michael; Ragui, Mary (European Journal of Business and Management, 2013)[more][less]
Abstract: The floriculture industry is one of the most crucial sectors in Kenya’s economy. It contributes a significant percentage of the Gross National Product (GNP) and employs tens of thousands of workers. The industry has, however, faced a decline over the last five years. This empirical research had the overall objective of investigating the factors contributing to supply chain disruption in the industry and used Equator Flowers Limited in Eldoret, Kenya as a case study. The research applied descriptive survey research design and employed random sampling technique. The data collection was done with the aid of structured and semi-structured questionnaires containing relevant questions on the supply disruption phenomenon. The study found that the most significant amongst the factors contributing to supply chain disruption in the floriculture industry in Kenya are natural disasters, logistics process design, labor union actions and finally production function mechanics. To address supply chain disruptions, the study recommends: implementation of comprehensive business continuity plans to mitigate against the supply chain effects of natural disasters, development of logistical process redundancies, formulation of creative policies to contain labor unions agitations and investment in research to develop resilient and scalable production function mechanics. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3648 Files in this item: 1
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Chesang, Laban K.; Naraidoo, Ruthira (Economic Modelling, 2016)[more][less]
Abstract: This paper exploits the Lucas’ (1973) signal extraction model to study the effect of uncertainty in the outputinflation trade-off on inflation, using a monetary model with asymmetric central bank preferences over inflation and output. We show that the implication of the uncertainty is two-fold: firstly, it causes the interaction of output and volatility of monetary policy to influence inflation movements so that, higher volatility in monetary policy causes inflation to rise. Secondly, as suggested in an optimal rule, it causes output to contract by less whenever inflation increases above the target, and to expand by less whenever inflation is below the target. We also find that the Reserve Bank’s asymmetric aversion to inflation stabilization explains inflation movements significantly, and that the monetary authority seems to penalize more for inflationary rather than deflationary pressures. Overall, the Bank’s deflationary bias would allow for a relatively flat output-inflation trade-off, which could be helpful for economic stability. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3647 Files in this item: 1
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Arjoon, Riona; Botes, Mariëtte; Chesang, Laban K.; Gupta, Rangan (Journal of Business Economics and Management, 2012)[more][less]
Abstract: The existing literature on the theoretical relationship between the rate of inflation and real stock prices in an economy has shown varied predictions about the long run effects of inflation on real stock prices. In this paper, we present some time series evidence on this issue using South African data, by applying the structural bivariate vector autoregressive (VAR) methodology proposed by King and Watson (1997). Our empirical results provide considerable support of the view that, in the long run real stock prices are invariant to permanent changes in the rate of inflation. The impulse responses reveal a positive real stock price response to a permanent inflation shock in the long run, indicating that any deviations in short run real stock prices will be corrected towards the long run value. It is therefore concluded that inflation does not lower the real value of stocks in South Africa, at least in the long run. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3646 Files in this item: 1
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Ndambuki, Andrew; Bowen, Michael; Karau, James (European Journal of Business and Strategic Management, 2017)[more][less]
Abstract: Purpose: To analyze the business strategies of Telkom Kenya Limited and how this has helped the company gain market share. Methodology: The study adopted a descriptive research design. Findings: The results from the study show that the effects of strategies to gain market share have been successful. Strategies such as culture change, retrenchment, product differentiation, product modification, and aggressive marketing campaigns have had a major impact on the market share of the company. Further results show that the strategies at Telkom Kenya positively affect the company profits. Unique contribution to theory, practice and policy: The findings of this study will benefit a number of interest groups. Foremost, the management of Telkom Kenya Limited as a reference point will benefit from the research and recommendations on areas to improve on. Secondly, the study will benefit managers of other firms who can learn from the TKL case. For academicians, my research will contribute to the general body of knowledge and form a basis for further research on the effects of business strategies on any given industry. Investors, shareholders, suppliers and the general taxpaying public can also gain insight on the company and its strategic position within the mobile industry which can assist them in determining the viability of their investments. Finally, the government can also use the results to monitor how the industry is performing and help it formulate policies and mechanisms that will assist in expanding it in order to improve revenue collections in terms of taxes. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3645 Files in this item: 1
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Lunani, Elsa Khayanga; Karau, James (The International Journal of Business Management and Technology, 2018)[more][less]
Abstract: The main objective of this study was to establish the effect of Mergers and Acquisition (M&A) on a firm’s competitive advantage in the IT industry. A descriptive research approach was adopted with a target population comprising of all employees atHewlett Packard Company (HP) in Nairobi, Kenya.Horizontal mergers were found to be the most common types of mergers. These mergers weremainly driven by external economies of scale, market power, combined complimentary resources and customer service quality. The findings also established that the major elements of competitive advantage were volume of transactions and markets share. External economies of scale, market power and combined complimentary resources contributed positively to competitive advantage while surplus funds and idle resources did not drive competitive advantage. Based on the study,researchers recommended that decisions on M&A should be based on first understanding which facets of the business will be driven by the M&A in order to derive a competitive advantage. In addition, there is need for companies to do progress evaluation of the M&A specifically to review its impact on competitive advantage URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3644 Files in this item: 1
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Karau, James; Onyango, Maureen; Ngondi, Rose (African Journal of Clinical Psychology, 2018)[more][less]
Abstract: Alcoholism and drug abuse among college students are becoming an increasing problem in the world today according to many studies. Many of these young people eventually get addicted to drugs and alcohol which adversely affect their academic performance as well as posing a threat to their own health and safety, while creating a great economic burden on their families and society at large. An individual’s participation in religious activities has been associated with decreased risky behaviors among adolescents and young adults. Studies have largely focused on the role of the individual’s religiosity in delaying risky behaviors such as drug use and sexual indulgence. However, there seems to be scanty literature of analysis on specific indicators of religiosity against drug use. The objective of this study was to determine the influence of personal religiosity indicators on drug use among college students. Multistage stratified random sampling technique was used in the selection of participants. In total, 905 participants responded to a self-administered questionnaire. Composite variables for individual and parental religiosity were developed and analyzed through descriptive statistics and bivariate analysis. A higher level of personal religiosity was associated with lower drug prevalence. Higher personal religiosity (religious affiliation, active participation in church activities, and whether the correspondent spent free time worshiping) showed lower substance use. Indicators of parent religiosity had no direct significant influence on substance us. In conclusion, indicators of personal religiosity were associated with low drug use. Therefore, institutions can implement multiple forums and strategies that would ensure increased engagement in religious activities that go beyond chapel attendance and “born again” status. Similarly, the role of institutional religiosity cannot be undermined and implementing similar strategies would increase the level of religiosity among adolescents and subsequently reduce drug use. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3643 Files in this item: 1
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Karau, James; Ng’ang’a, Paul (European Journal of Business and Management, 2019)[more][less]
Abstract: This study examined the effects of macroeconomic factors on foreign direct investment in Kenya (FDI). The study used four macroeconomic variables namely foreign exchange rates, tax rates, inflation rates, interest rates and balance of payment for the period 1970 to 2010. The study used a multiple linear regression analysis with the FDI inflows as the dependent variable and the macroeconomic factors as the independent variables. The study found a positive relationship between FDI and interest rates as well as balance of payments while inflation and tax rate had negative relationship with FDI. The study recommended that the government should promote a stable macroeconomic environment in the country to enhance FDI. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3642 Files in this item: 1
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Onono, Perez Ayieko; Wawire, Nelson W.H.; Ombuki, Charles (International Journal of Development and Sustainability, 2013)[more][less]
Abstract: Agricultural development policy in Kenya has emphasised the use of incentives towards increased production and therefore self-sufficiency in maize which is a basic staple for most households. The channels used to provide incentives to maize farmers over the years include setting higher producer prices; subsidisation of inputs; provision of agricultural credit, research and extension services; construction and maintenance of roads, development of irrigation and water systems; legislative, institutional and macroeconomic reforms. Despite these efforts outputof maize has remained below domestic requirements in most years and the country continues to rely on imports to meet the deficits. Studies have assessed the responsiveness of maize to output price and reported inelastic responses and have recommended policies targeting non-price incentives to complement prices for the required increased production of maize. The studies, however, did not analyse the influence of the non-price incentives on the production of the crop. The findings of those studies are therefore deficient in explaining the relative importance of different non-price incentives and how they complement prices in influencing maize production in Kenya. This study investigated the response of maize production to both price and non-price incentives. The aim of this study was to ascertain the relative importance of non-price factors in influencing production of the crops as well as complementarity between price and non-price incentives. The findings show that maize production responds positively to its output price, development expenditures in agriculture, maize sales to marketing boards, growth in per capita GDP, liberalisation and governance reforms. However, maize production responds negatively to fertiliser price and unfavourable weather conditions. The response of maize output to its price is lower with rising inflation and grain market liberalisation. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3641 Files in this item: 1
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Ateka, Josiah M.; Onono, Perez A.; Etyang, Martin (Global Journal of Science Frontier Research: D Agriculture and Veterinary, 2018)[more][less]
Abstract: The smallholder tea sub-sector in Kenya has enjoyed relative growth in acreage, output, and number of growers since its inception in the early 1960s, but productivity has remained low. There are huge differentials between actual and potential yields suggesting underlying production inefficiencies. This study estimated the level of technical efficiency and analyzed its determinants among tea farmers from two selected counties in Kenya. Using data from a sample of 525 farm households, the non-parametric data envelopment analysis was applied to estimate technical efficiency scores. The scores were then regressed on a set of explanatory variables to establish their influence on efficiency. The average efficiency score of 0.46 indicates that overall productivity in Kenya’s smallholder tea sub-sector is low but has a potential to increase if most of the farmers can adopt practices of the frontier farms. The intensity of family labor use, farm size, age of the tea farm, education level of the household head, access to extension services through the farmer field schools, and the sale of green leaf through alternative marketing channels have a significant influence on levels of efficiency URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3640 Files in this item: 1
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Ateka, Josiah M.; Onono, Perez Ayieko; Etyang, Martin (Journal of Agricultural Economics and Rural Development, 2018)[more][less]
Abstract: The smallholder tea sub-sector makes an important contribution in the Kenyan economy. Although subsector has enjoyed relative growth in terms of acreage, output and number of growers, productivity has remained low. Industry trends show that there are wide differentials between actual and potential yields, indicating underlying production inefficiencies and considerable potential to improve the farmers’ income and livelihoods. This study used a semi–log productivity regression model to investigate the determinants of productivity in smallholder tea production in Kenya. The study used survey data of a random sample of 525 tea farming households collected from two leading production regions in Kenya. The results show that location specific heterogeneities, farm size, the intensity of family labor applied in tea farming, access to extension through the farmer field schools, credit utilization and the tea marketing arrangements have significant influence on tea productivity. In order to exploit the existing potential, we recommend policies that focus on correcting imperfections in the agricultural labour markets, consolidation of small tea farms, and expansion of credit and extension programs. Additionally, the policy formulation and implementation process should take into account the existent regional heterogeneities in the different tea growing areas of Kenya. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3639 Files in this item: 1
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Amata, Evans; Muturi, Willy; Mbewa, Martin (European Journal of Business, Economics and Accountancy, 2016)[more][less]
Abstract: This study examined the relationship between interest rate, inflation and stock market volatility in Kenya using both primary and secondary data. A monthly time series data for a period of 14 years from January 2001 to December 2014 was used to study the relationship. Additionally, 385 Questionnaires were distributed to individual investors to understand investor’s perceptions on the relationship. The vector error correction model was used to analyse time series data for the long run causal relationship between inflation, interest rate and stock market volatility, while the granger causality test was used to analyse the short run relationship. Findings revealed that there was a positive and significant long run relationship between inflation rate and stock market volatility (t-statistic= 5.96). Findings also show a positive and significant short run relationship between inflation and stock market volatility (chi-square value of 13.39 and a p-value of 0.0039). The relationship between interest rate and stock market volatility was found to be negative and weakly significant both in the short run (p-value of 0.0683) and long run (t-statistic of -1.90). Results from investor’s perception revealed that 69% of the respondents agreed that a change in inflation rate causes fluctuation in share prices. Additionally, primary data results show that 75% of the respondents agreed that sudden changes in the interest rate have always caused variations in the stock market returns. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3638 Files in this item: 1
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Kirui, Evans; Wawire, Nelson H. W.; Onono, Perez Ayieko (International Journal of Economics and Finance;, 2014)[more][less]
Abstract: This study sought to evaluate the relationship between Gross Domestic Product, Treasury bill rate, exchange rate, inflation and stock market return in Nairobi Securities Exchange Limited. The study determined the response of the stock returns to a shock in each of the macroeconomic variables. The effect of changes in each of the macroeconomic variable on the volatility of stock returns in Nairobi Securities exchange limited was also determined. Engle-Granger two step method was used to establish the co integrating relationship between stock returns and the macroeconomic variables. Threshold Genaralized Autoregressive Conditional Heteroscedasticity (TGARCH) model was used to capture the leverage effects and volatility persistence at the NSE. Published time series quarterly data from 2000 to 2012 was sourced from the Central Bank of Kenya, Kenya National Bureau of Statistics. Empirical results of the regression model revealed that exchange rate showed a significant relationship with stock returns. For a one percentage increase in depreciation of a domestic currency, the model predicted stock returns to decrease by 1.4 percent. Gross Domestic Product, Inflation and the Treasury bill rate indicated insignificant relationships. The effects of one standard deviation shock on each of the macroeconomic variable on stock returns revealed that shock in exchange rate was negative but eventually reverted back to equilibrium thereafter. The results of the TGARCH model for exchange rate, Gross Domestic Product and Treasury bill rate revealed that the impact of news was asymmetric and there was presence of leverage effects. There was absence of volatility persistence among all the macroeconomic variables. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3637 Files in this item: 1
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Meah, Daudi Ong’ang’a; Onono, Perez Ayieko; Ocharo, Kennedy Nyabuto (International Journal of Development and Sustainability, 2016)[more][less]
Abstract: The study was done to investigate the effect of FDI on economic growth in Kenya, to determine the influence of institutional quality on the effect of FDI on economic growth, and to determine the effects of structural breaks on economic growth in Kenya. This was based on the failure of the reviewed studies to capture the role of institutional quality in this effect. Markets that are likely to persist in low-quality-institution jurisdictions are those in which exchange is simultaneous and self-reinforcing. Such markets are common either because many of the exchanges simply meet the conditions for self-reinforcement or just because they are so lucrative that the absence of self-reinforcement makes even risky exchanges worthwhile. However, many transactions require a third party for their reinforcement. These are non-simultaneous transactions whereby the quid is needed at one time or place and the pro at another. Data used in the study were obtained from published sources for the period 1975 to 2013 and they were subjected to statistical analysis. To answer objective one, two, and three the study used ordinary least square estimation and the findings were that FDI affects economic growth positively and institutional quality has a growth-enhancing effect on FDI. URI: http://repository.daystar.ac.ke/xmlui/handle/123456789/3636 Files in this item: 1