The Influence of Foreign Aid on Public Expenditure in Kenya, 1970-2009
Abstract
The growth of public expenditure in Kenya has gone up in the last four decades .The paper looks
into the influence of foreign aid on public expenditure in Kenya. The data used for the analysis
was gathered from various issues of economic surveys undertaken by Kenya National Bureau of
Statistics and World Bank reports and the coverage is from 1970 to 2009. The study applied
Heller’s utility maximization model (1975), and Error- Correction methodology was used to
prevent spurious regression results. The study reveals that the foreign aid plays a major role in
the short run and long run in influencing development expenditure as opposed to recurrent
expenditure in Kenya.
Citation
Degree Of Master of Arts in economics.Publisher
University of Nairobi School of Business
Description
A research paper submitted to the school of
Economics, university of Nairobi, in partial
Fulfillment of the requirements for the degree
Of Master of Arts in economics.