The role of financial intermediation in savings mobilization in Kenya
Abstract
Savings mobilisation is quite a complex issue and the
factors that enable this process to run is also incricace. These
factors tend to differ from one economy to the other and depend
too on the stage of economic development an economy finds itself
in.
In this study, the controversial role of financial intermediation on saving mobilisation is assessed
other economic variables that affect savings are addressed in
this study. An attempt was made to find out whether there exists
a relationship between economic and financial development in Kenya.
Various studies reviewed focused on the role financial
intermediation play in savlngs process, factors deemed important
in this mobilisation as well as literature on the type of
relationship that is perceived to exist between economic and
financial development
The analyzed results showed that financial intermediation,
per capita income and foreign capital inflows affect saving's
significantly in Kenya. Using 'appropriate albeit simple proxies
an explicit link was found to exist between economic and
financial development. The influence of financial development on
economic development was positive.
Policy implications of the study were suggested that were
aimed at encouraging and facilitating the economy's monetisation
for the benefit of productive savings accumulatlon .
Finally the study focuses on areas of further research having put in
consideration some of the limitations of the study.
Citation
Masters thesis University of Nairobi (1994)Publisher
University of Nairobi Department of Economics