The Effect Of Fiscal Decentralization On Economic Growth In Kenya

Abstract

This study is anchored towards examining the effect of fiscal decentralization on economic growth in Kenya between the years 2013 to 2018.The main motivation towards conducting this study is the fact that1the effect1of fiscal decentralization on1economic1growth is still inconclusive. Most studies that have been conducted on fiscal decentralization have produced mixed1results1with some1showing that positive1effect1and others a1negative1effect1on economic growth. The study relied on secondary data which basically involved reading various pieces of literature on the subject matter. Panel data was used with study period ranging from 2013 to 2017 for the 47 counties. Through the research findings, the study concludes revenue share negatively impact economic growth. However, country grants plays significant and positive role on economic growth for Kenya. Based1on the study1findings the1study1recommends1that there is need for county resource mobilizations through appealing to both non-governmental organizations and international organizations for development funds in form of grants. These funds should be channeled towards development projects that spur economic growth.