ECONOMIC IMPACT OF IMMIGRATION IN KENYA

Abstract

This study sort to investigate the impact of immigrants on the economic growth of Kenya between 1980 and 2014. Specifically, the study aimed at establishing the causality between immigrants and economic growth as well as the impact of the immigrant influx to Kenyan economic growth. Using time series data analysis such as cointegration, granger causality and OLS regression, the study had the following findings: first, there is no causality between immigrants and economic growth in Kenya under the period of study; second, all variables were found to have a long run causality and lastly, only gross fixed capital formation was found to have a positive and statistical influence on the economic growth of Kenya under the period of study. The study recommends a strict vetting of all immigrants to Kenya to establish the skills and experiences they have to add value to Kenyan economic growth. Equally, the study recommends more allocation of gross fixed capital formation as its impact on economic growth was positive and significant.