Moderating Effect of Political Instability on ICT and Economic Growth Nexus in Kenya: ARDL Bound - Co-Integration Approach
Journal Title: Journal of Economics, Finance and Management Studies - Year 2021, Vol 4, Issue 10
Abstract
The government has attempted to target specific macroeconomic factors in order to stimulate economic growth in Kenya through monetary and fiscal policies. Despite these efforts, Kenya's GDP growth is hampered by high interest rates and high interest rate volatility. Kenya's ability to address macroeconomic instability hinges on its ability to increase economic growth. Auxiliary evidence shows that perspectives on the relationship between ICT and economic growth are segmented. The goal of this study was to determine the impact of ICT on economic growth in Kenya, as well as the moderating effect of political instability on the relationship. The research was based on Solow's theory of growth. An explanatory research design was used, with data spanning from 1990-2020 obtained from Kenya Bureau of Statistics. In the empirical analysis, the study used the bound test to test for a long-run relationship and the Autoregressive Distributed Lag model (ARDL) to evaluate the relationship between the variables. The data was subjected to an Augmented Dickey Fuller (ADF) test to determine stationarity.The long run ARDL results indicated that the coefficients of; ICT rate were insignificant . However with the introduction of political instability as the moderator ICT was significant and positively affected economic growth. Political instability moderated the relationship between ICT ( and economic growth. As a result, promoting effective governance should help to improve political stability. The findings of this study will help the government figure out how to address the problem of low economic growth. According to the study, the government should invest in the ICT sector to improve its accessibility and affordability. Additionally, the government should work to improve political stability and good governance by gradually establishing institutions that uphold the rule of law and provide security.
Authors and Affiliations
Matundura Erickson, Dr. Elvis Kiano, Dr. Alfred Serem
Keywords
Related Articles
- EP ID EP706048
- DOI 10.47191/jefms/v4-i10-08
- Views 59
- Downloads 0
Analysis of Market Structure and Behavior for the Resilience of Msmes Agro-Food Industry in Malang City
Common and chronic problems of Indonesian MSMEs, including food agro-industry MSMEs, are limited capital, entrepreneur or labor skills, product appearance and quality, and access to product sales and/or marketing managem...
Academics' Work Life Balance During Pandemic
Some problems occur regarding work-life balance during the pandemic. This study tries to understand how lecturers face stressful situations related to job changes from traditional working in the office (before the pandem...
The Potential Role Of Sukuk In Promoting Economic Growth: Evidence From Malaysia And Bahrein
Due to fixed interest and fixed income, bonds are considered excluded in the Islamic financial system. The sukuk were designed as an alternative to these bonds, meeting the needs of all investors seeking instruments that...
The Effect Of Work Life Balance And Self Efficacy On Employee Performance With Employee Engagement As Intervening Variable
This study aims to determine and analyze whether work life balance and self-efficacy affect employee performance with employee engagement as an intervening variable at the Department of Cooperatives and Micro Enterprises...
Digital Transformation in Mses: A Story from Indonesia
The emergence of digital technology (DT) or information and communication technology (ICT) has created a drastic change in business practices which presents a serious challenge to the success of the implementation of the...