The Relationship between Fiscal Deficits and Economic Growth in Kenya: An Empirical Investigation
Publication Date
2013Author
Momanyi, G
Odhiambo, SO
l, Othuon
Aila, Fredrick O
Metadata
Show full item recordAbstract/ Overview
The Kenyan government has been committed to a stable macroeconomic
environment, characterized by low and stable inflation and sound fiscal policy. However, in
the late 1970s to date, the government has continued to experience high, persistent and
unsustainable deficits. Despite the fact that economic reform programs adopted in recent
years have emphasized demand management through fiscal restraint, fiscal deficit has been
phenomenal to Kenya's economy coupled with a dwindling economic growth. The study
therefore attempted to establish the extent to which fiscal deficits and economic growth are
related and further investigated ways in which fiscal deficits (transmission mechanism) have
effects on the growth and development of the Kenyan economy. The study used both
exploratory and causal research designs and employed time series secondary data for a …