Inflationary Effects, Exchange Rate and Economic Growth Rate in Kenya
نویسندگان
چکیده
Human civilization has always been centred on economic growth. Economic growth difficulties are the main focus of government policy and study in modern, globalized world. Kenya's overarching goal is to become a middle-income nation that both globally competitive wealthy provides its residents with high quality life. The Kenya Vision 2030 country's development strategy. Different perspectives relationship between inflation, exchange rate have shown diverging results. This study's particular goals were determine effect inflation using Keynesian theory. used explanatory research design adopted positivism philosophy. Annual data from 1980 2019 giving 40 observations was used. Vector Error Correction (VECM) Model customized analyzing long run short-run contribution macroeconomic variables gross domestic product Kenya. From VECM model, R-square value 58.62, Chi-square 26.913 (p > Chi2 = 0.0494) showing fit for parameter estimation. coefficient -0.828 p-value 0.001 while 0.055,p value=0.020.The findings this will provide good fiscal monetary recommendations as well guidance how solve issue weak Because predicted slow down when exceeds threshold, must control inflation. should support policies strengthen stability versus major world trading currencies aiming an ideal level because foreign currency rates detrimental impact
منابع مشابه
Effects of Financial Liberalization on Macroeconomic Volatilities: Applications to Economic Growth, Exchange Rate and Exchange Rate Pass-Through
متن کامل
The impact of exchange rate on economic growth under different exchange rate regimes (in selected countries developed and developing)
This paper examines the role of different exchange rate regimes on relationship between exchange rate volatility and economic growth. To investigate this relationship, information of 53 countries with floating and fixed exchange rate regimes in the period of 1987-2016 are considered. GARCH technique is used to estimate exchange rate volatility and Difference GMM technique for estimating the mo...
متن کاملEconomic Growth, Tourism Receipts And Exchange Rate In MENA Zone: Using Panel Causality Technique
متن کامل
Exchange rate pass-through in Iran: Exchange rate effects on the consumer price index
The purpose of this study is to find an accurate estimate of the exchange rate-CPI relationship in Iran over the past three decades. The results of the Granger causality test in the frequency domain demonstrate a strong causation from the exchange rate to CPI especially in the long run. The results of the wavelet analysis show that in the currency crisis periods, the exchange rate-CPI correlati...
متن کاملInvestigating the Relationship between Unemployment Rate and Economic Growth Rate in Iran and Selected Countries
Abstract. According to a rule known as the Okan Law, for one percent decrease (increase) in the unemployment rate, the economic growth rate will increase (decrease) by approximately 0.3 percent. In other words, there is a negative relationship between the unemployment rate and the economic growth rate. This study examines the establishment of this relationship. Contrary to expectations, the rel...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of economics, finance and management studies
سال: 2022
ISSN: ['2644-0490', '2644-0504']
DOI: https://doi.org/10.47191/jefms/v5-i12-03