Public Borrowing And Private Investment In Kenya

Masters Thesis

Saved in:

Bibliographic Details
Main Author:	George O. Rachuonyo
Format:	Thesis
Language:	English
Published:	School of Business and Economics, Daystar University 2024
Subjects:	Private Investment Kenya
Online Access:	https://repository.daystar.ac.ke/handle/123456789/4541
Tags:	Add Tag No Tags, Be the first to tag this record!

_version_	1804834344750022656
author	George O. Rachuonyo
author_facet	George O. Rachuonyo
author_sort	George O. Rachuonyo
collection	DSpace
description	Masters Thesis
format	Thesis
id	oai:repository.daystar.ac.ke:123456789-4541
institution	Daystar University
language	English
publishDate	2024
publisher	School of Business and Economics, Daystar University
record_format	dspace
spelling	oai:repository.daystar.ac.ke:123456789-45412024-05-08T12:51:17Z Public Borrowing And Private Investment In Kenya George O. Rachuonyo Private Investment Kenya Masters Thesis ABSTRACT The purpose of this research was to examine public borrowing and private investment in Kenya, as there remains a research gap between domestic and foreign borrowing. The research was guided by three objectives: To assess the trends and patterns of domestic and foreign public borrowing in Kenya; to evaluate private investment in Kenya, and to determine the effect of public borrowing on private investment in Kenya. It focused on data from 1999 to 2021 with an emphasis on domestic borrowing, foreign borrowing, and Gross Fixed Capital Formation (GFCF). The Ricardian equivalence, functional finance, and Keynesian theories were used to guide the study. The target population consisted of all the years from 1964 to 2021 from which a data sample included 1999 to 2021. Correlational research design was used, with secondary data that descriptive and inferential statistics were obtained using the student version of Eviews12. The findings revealed a significant increase in public borrowing and the growth of average private investment contribution to Kenya’s GDP of 20.2%. Public borrowing was found to have a negative significant impact on private investment, with both short-term and long-term effects. Other than exchange rate, inflation and interest rate had negative impact on private investment although the impact was insignificant. In conclusion, the findings were aligned with the Ricardian Equivalence Theory by providing empirical support for the idea that public borrowing negatively affects private investment The study recommended that policymakers should implement measures that attract foreign investment, reducing dependence on domestic borrowing. Policies aimed at stabilizing key economic indicators to foster a conducive investment climate control should be promoted. Furthermore, private investors should diversify their investment strategies to mitigate the negative effects of public borrowing. Daystar University 2024-05-08T12:45:57Z 2024-05-08T12:45:57Z 2024-10 Thesis George O. R,. (2023, Thesis). Public Borrowing And Private Investment In Kenya. School of Business and Economics, Daystar University https://repository.daystar.ac.ke/handle/123456789/4541 en application/pdf School of Business and Economics, Daystar University
spellingShingle	Private Investment Kenya George O. Rachuonyo Public Borrowing And Private Investment In Kenya
title	Public Borrowing And Private Investment In Kenya
title_full	Public Borrowing And Private Investment In Kenya
title_fullStr	Public Borrowing And Private Investment In Kenya
title_full_unstemmed	Public Borrowing And Private Investment In Kenya
title_short	Public Borrowing And Private Investment In Kenya
title_sort	public borrowing and private investment in kenya
topic	Private Investment Kenya
url	https://repository.daystar.ac.ke/handle/123456789/4541
work_keys_str_mv	AT georgeorachuonyo publicborrowingandprivateinvestmentinkenya

Public Borrowing And Private Investment In Kenya

Similar Items