Government capital spending and financing and its impact on private investment in Kenya: 1964-2006

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dc.contributor.author Oyieke, Samuel O.
dc.date.accessioned 2018-11-20T11:05:21Z
dc.date.available 2018-11-20T11:05:21Z
dc.date.issued 2011
dc.identifier.issn 978-9966-023-08-7
dc.identifier.uri http://ir.jooust.ac.ke:8080/xmlui/handle/123456789/2903
dc.description.abstract This paper examines the relationship between public investment and its financing on private investment in Kenya for the period 1964-2006. Using an error correction framework and time series data for the fiscal years 1964-2006, the study shows that investment in agriculture has a significant positive effect on private investment, while domestic debt has a significant negative effect. Political risk, real exchange rate, external debt, and tax though negatively related are insignificant. Investment in infrastructure has an insignificant positive effect. These findings have important policy implications that investment in agriculture crowds-in private investment. To encourage private investment, the government should channel increased resources to the agricultural sector. Domestic debt crowds-out private investment, thus the government should reduce its dependence on domestic borrowing to finance budget deficit. JEL classification: en_US
dc.language.iso en en_US
dc.publisher The African Economic Research Consortium en_US
dc.subject Public expenditure en_US
dc.subject tax and debt financing en_US
dc.subject private investment en_US
dc.subject error correction en_US
dc.title Government capital spending and financing and its impact on private investment in Kenya: 1964-2006 en_US
dc.type Article en_US


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