| dc.description.abstract | The objective was to show that structural change plays a significant role in economic
growth in the Kenyan economy. Structural change in the cointegrated VAR model
was described as the deviation of actual production technologies from efficient production
technologies. This was in relation to previous studies that had concluded
that structural changes were mostly significant in poor countries and that the rate of
labour transfers between low productivity and high productivity sectors may have a
significant effect on the rate of economic growth, by directly increasing sector productivities
(Duarte,Restuccia, 2007).Data Analysis and interpretation of the cointegrated
VAR model revealed that structural changes were important for growth in output and
labour and were mostly significant in industry where production and employment was
well below the optimal steady state(competitive equilibrium). | en |
