| dc.description.abstract | Manufacturing is the corner stone of Kenya's Industrial sector.
This sector is not only seen as the economy's engine of growth but
also as a means of diversifying it. However after three decades
of existence, the sector is still grappling with problems, some of
which were inherited from the pre - independence period. These
problems have contributed to the poor performance of the sector
especially in the 1980s.
Based on the existing literature and the available data, this paper
provides a descriptive and empirical analysis of the factors that
determine growth in the manufacturing sector. Its primary purpose
is to identify the major determinants of manufacturing output
growth in Kenya. In doing this, the major focus of the paper is an
analysis of the relative importance of these determinants,followed
by a proposal of measures to enhance output growth in the sector.
The main findings of the paper,based on a time-series regression
model, are that per capita income, export of manufactures,
government expenditure and import substitution have statistically
significant influences on manufacturing output growth. Industrial
policies and foreign investments in manufacturing turn out to be
modest predictors of manufacturing output growth.
To promote faster growth of the sector, there is need to adopt
policies which enhance the per capita income level. To this end
policies are required both in the agricultural and the industrial
sectors which are the major sources of income. The future of
manufacturing will also depend heavily on the growth of its exports
and the adoption of more efficient import substitution strategies.
More importantly, the growth of the sector will depend on what
extent industry - specific policies are adopted to rationalize and
re - structure the whole manufacturing sector. | en |
