A Conceptual And An Empirical Study On The Determinants And The Possibility Of Sustained Growth In Kenya

This paper is a general empirical study on the determinants and the possib ility ofrnsustained growth for Kenya. Some determinants were regressed on investment, agriculturalrnoutput, growth in the service sector, net capital inflow, and growth in exports . Itrnconcludes that financial deepen ing, outward orientation, foreign capital inflow, humanrncap ital development and service sector growth have a strong positive link to betterrneconomic p erformance. Population size, political disruption and adverse terms of tradernare lethal to growth. The paper further reveals the substitution between economicrnprudence and donor funding, held responsible for current economic achievem ents. Thisrnis attributed to donor conditionality and competitive multi-party politics which forced therngovernment to clean up economic mismanagement and built a reputation. This can onlyrnbe maintained if policies are incessantly consistent without reversal

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