Manufacturing exports sector and economic growth in Kenya: a causal linkage
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Date
2005-09Author
Too, Wesley Kiprotich
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The study attempts to empirically verify whether manufacturing exports contribute
positively to economic growth in Kenya for the sample period 1970-20032. The analysis,
based on tointegration and vector error correction model (ECM) suggest a negative
contribution of manufactured exports to economic growth. Error correction term captures
long run relationship. The negative coefficient could be due to inadequate private
investment in the manufacturing sector; and possibly the adverse effect of an import
substitution trade regime that suppressed the growth performance of the manufacturing
sector, and hence the sector's exports. The sector is therefore yet to be an engine of growth
in Kenya.
It is therefore evident that, in order to stimulate the contribution of manufacturing exports
to economic growth, the industrialization policy should shift into a more outward oriented
trade regime. Policies specific to the export sector and other macroeconomic policies need
to be implemented in such a way that they work hand in hand to promote the
manufacturing export sector.
Publisher
Department of Econimics, University of Nairobi
Description
Master of Arts degree in Economics