Browsing by Author "Waweru, Jimnah"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Foreign aid and economic development in Kenya, 1980-1993
    (University of Dar es Salaam, 1995) Waweru, Jimnah
    The aim of this study was to examine empirically the impact of foreign aid inflows on savings, investment and economic growth it Kenya in the period 1980-1993. This study was important because to my knowledge no such study had been undertaken in the case of Kenya. The time span of this study (1980-1993) was important because of the growing donor disenchantment with foreign aid in promoting development in less developed countries and also due to the problem of aid stoppage to Kenya in 1991. After employing the use of simultaneous equations model and solving the same using two stage least squares estimation technique (2 SLS), the study came up with several findings of importance viz: i)There was a negative relationship between savings rate and foreign aid inflow to Kenya in the period 19801993. ii) There was a positive relationship between the rate of GDP growth and foreign aid inflow to Kenya in the period 1980-1993. iii) There was a positive relationship between the rate of investment and inflow of aid to Kenya in the period 1980-1993. Whereas the central problem of the study was to establish whether Kenya can do without foreign aid, this study recommends that at the present Kenya can hardly survive economically without foreign assistance. In this vein, Kenya has to wait until she has attained the stage of self sustainable growth before she can do without foreign aid. There is, however, need for the country to reduce her heavy reliance on external resources and to employ incoming foreign aid optimally and efficiently.