Influence of Exchange Rate on Economic Growth in Kenya
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 6
Abstract
Economic growth is determined by macroeconomic variables among which include exchange rate. Policy makers seek the of effect of various decisions made regarding macroeconomic variables. The objective of this publicationwas to explain the influence of exchange rate in the Kenyan economic growth. The empirical literature reviewed findings of other scholars on the influence of exchange rate on economic growth in Kenya.This study used descriptive research design which involved observing and describing facts about the impact of exchange rate on economic growth, as it is popularly done in business and social science research.Secondary data from publications of Kenya National Bureau of Statistics (KNBS) and the Central Bank of Kenya (CBK) was used for the time period between 2001 and 2017. The study focused on the ratio of Ksh to USD and Kenyan GDP for the period between 2001 and 2017 which constituted the target population. Data analysis was done using statistical package for social sciences 16.0which was used to conduct correlation analysis between GDP and exchange rate and to produce regression equation between the two variables. The findings in the publication will be used to inform policy-makers on the effect(and theextent)of exchange rate on economic growth in Kenya. This will help in predicting the growth that can be realized in manipulatingexchange rate. The study forms a basis for more research regarding macroeconomic situation in Kenya and adds to the existing macroeconomic literature.
Authors and Affiliations
Elijah Ndetei King’ola
Keywords
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- EP ID EP430878
- DOI 10.9790/5933-0906043438.
- Views 155
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