The Egg or the Chick First; Saving or GDP Growth: Case for Kenya
dc.contributor.author | Waithima, Abraham K. | |
dc.date.accessioned | 2021-06-10T13:08:54Z | |
dc.date.available | 2021-06-10T13:08:54Z | |
dc.date.issued | 2008 | |
dc.description.abstract | This paper adopts the Hendry Model with a two-step method to model a saving function for Kenya. The Model uses a complex dynamic specification that includes lagged dependent and the independent variables. The paper finds that a 1% increase in GDP growth rate leads to a 0.5% increase in private saving in the long run which is consistent with the life cycle hypothesis. A striking result in the saving function is the positive effect that population growth rate seems to have on private savings which puts into question the notion of a smaller population as a mobilization tool for private saving. Even though consumption seems to have a significant negative effect on private savings in the short run, in the long run, it does not seem to have any significant effect. Causality tests support a uni-directional causality from per capita GDP to private saving and a bi-directional causality between Gross Domestic Saving and Investment. | en_US |
dc.identifier.citation | Waithima, A. (2008) Egg or the Chick first; Saving or GDP Growth: Case for Kenya. KCA Journal of Business Management. 1(1) https://www.ajol.info/index.php/kjbm/article/view/43817 | en_US |
dc.identifier.issn | 2071-2162 | |
dc.identifier.uri | https://repository.daystar.ac.ke/handle/123456789/3567 | |
dc.language.iso | en | en_US |
dc.publisher | KCA Journal of Business Management. | en_US |
dc.subject | Hendry Model | en_US |
dc.subject | GDP growth | en_US |
dc.subject | Kenya | en_US |
dc.subject | Saving function | en_US |
dc.subject | Gross Domestic Saving | en_US |
dc.subject | Investment | en_US |
dc.title | The Egg or the Chick First; Saving or GDP Growth: Case for Kenya | en_US |
dc.type | Article | en_US |
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