Does Investment Climate Matter for Firm Performance? Evidence from Kenyan Manufacturing Firms

The productivity of Kenyan manufacturing firms is way lower than that of many developed economies and has generally exhibited a consistent decline over the last decade. While this productivity trend has largely been attributed to the presence of a high distortionary institutional and business regulatory environment, existing studies on the role of the investment climate in determining firm performance are ostensibly scanty. This study, thus, employed the World Bank panel enterprise data for the period 2007-2013-2018 in assessing whether investment climate mattered for firm performance in Kenyan manufacturing firms. More particularly, the study sort to establish the role of the court system and property rights ownership in determining firm performance; a feat that remains unexplored in the Kenyan context. The random effects model was estimated while controlling for the year, industry, and firm-specific control variables. The findings revealed that while court inefficiencies significantly impeded labor productivity, property rights ownership significantly increased productivity. Further, human capital positively determined labor productivity. Concerning governance and institutional factors, ISO Certified firms were found to be significantly more productive. Conversely, business licenses and permits constrained firm productivity. Therefore, to ensure unrelenting firm productivity, speedy and just delivery of court rulings on firm-related matters is critical. Secondly, the acquisition of patents relating to product or process innovation by firms enhances product competitiveness. Thirdly, manufacturing firms should invest more in human capital. Finally, the imposition of favorable business licenses and permits by the governments globally coupled with the ISO Certification requirement by firms is integral in optimizing labor productivity

Does Investment Climate Matter for Firm Performance? Evidence from Kenyan Manufacturing Firms

The productivity of Kenyan manufacturing firms is way lower than that of many developed economies and has generally exhibited a consistent decline over the last decade. While this productivity trend has largely been attributed to the presence of a high distortionary institutional and business regulatory environment, existing studies on the role of the investment climate in determining firm performance are ostensibly scanty. This study, thus, employed the World Bank panel enterprise data for the period 2007-2013- 2018 in assessing whether investment climate mattered for firm performance in Kenyan manufacturing firms. More particularly, the study sought to establish the role of the court system and property rights ownership in determining firm performance; a feat that remains unexplored in the Kenyan context. The random effects model was estimated while controlling for the year, industry, and firm-specific control variables. The findings revealed that while court inefficiencies significantly impeded labor productivity, property rights ownership significantly increased productivity. Further, human capital positively determines labor productivity. Concerning governance and institutional factors, ISO-certified firms were found to be significantly more productive. Conversely, business licenses and permits constrain firm productivity. Therefore, to ensure unrelenting firm productivity, speedy and just delivery of court rulings on firm-related matters is critical. Secondly, the acquisition of patents relating to product or process innovation by firms enhances product competitiveness. Thirdly, manufacturing firms should invest more in human capital. Finally, the imposition of favorable business licenses and permits by the governments globally coupled with the ISO Certification requirement by firms is integral in optimizing labor productivity

Reflections of Gender Mainstreaming Policies on Sectoral Development in Kenya: A Retrospection Review Since 2010.

Abstract Efforts to mainstream a gender perspective in global public policy have been prompted by the proliferation of transnational networking among women's movements. The government of Kenya on her part has expressed her intention to attain gender equality through gender mainstreaming policies as enshrined in the 2010 Constitution. The aim of this paper is to examine how gender policies have worked since 2010 in both government and non-government sectors in light of devolution. The study objectives include: (i) explore how gender policies are working in both government and non government sectors, (ii) establish how gender policies have achieved equity and egalitarianism, and, (iii) examine how the three arms of government have allowed gender policies to flourish. The paper will use both primary and secondary data sources to investigate the operations of gender equity policies. Respondents will be selected using both random and purposive sampling techniques; particularly those in policy positions. In analyzing data, descriptive and inferential statistics will be employed and the results obtained will inform policy makers. The study will use gender and feminist theories to examine the tensions in government in the process of empowering women and vulnerable groups. The research results will indicate if gender mainstreaming is a theoretical issue or it is an inclusive reality from a cross-cultural and national perspective. The paper will create opportunities for the way forwar

Designing capacity-building in e-learning expertise: Challenges and strategies

This research study looks at how organizations in developing countries perceive the challenge of building capacity in e-learning expertise. Data was collected on six such organizations, and a range of perceived rationales and constraints were identified. The paper hypothesizes a four-part framework to define the e-learning capacity gaps that these circumstances appear to represent: the 'instructional design capacity gap', the 'production capacity gap', the 'tutorial capacity gap' and the 'community building gap'. The framework is used to re-examine the data to explore the ways in which the organizations' e-learning activities might constitute strategic responses to the hypothesized capacity gaps

Does Investment Climate Matter for Firm Performance? Evidence from Kenyan Manufacturing Firms

The productivity of Kenyan manufacturing firms is way lower than that of many developed economies and has generally exhibited a consistent decline over the last decade. While this productivity trend has largely been attributed to the presence of a high distortionary institutional and business regulatory environment, existing studies on the role of the investment climate in determining firm performance are ostensibly scanty. This study, thus, employed the World Bank panel enterprise data for the period 2007-2013-2018 in assessing whether investment climate mattered for firm performance in Kenyan manufacturing firms. More particularly, the study sort to establish the role of the court system and property rights ownership in determining firm performance; a feat that remains unexplored in the Kenyan context. The random effects model was estimated while controlling for the year, industry, and firm-specific control variables. The findings revealed that while court inefficiencies significantly impeded labor productivity, property rights ownership significantly increased productivity. Further, human capital positively determined labor productivity. Concerning governance and institutional factors, ISO Certified firms were found to be significantly more productive. Conversely, business licenses and permits constrained firm productivity. Therefore, to ensure unrelenting firm productivity, speedy and just delivery of court rulings on firm-related matters is critical. Secondly, the acquisition of patents relating to product or process innovation by firms enhances product competitiveness. Thirdly, manufacturing firms should invest more in human capital. Finally, the imposition of favorable business licenses and permits by the governments globally coupled with the ISO Certification requirement by firms is integral in optimizing labor productivity

Domestic Resource Mobilization for Economic Development in Africa: Challenges, Policy Options, and Prospects in the New Horizon

This paper reviews the literature on the challenges, policy options, and prospects for Domestic Resource Mobilization (DRM) in Africa. Despite efforts made by African countries to enhance their resource mobilization capacity for the realization of both Agenda 2030 and Agenda 2063; notable challenges still exist and continue to hamper optimal revenue collection. Indeed, the prevailing global shocks namely the COVID-19 pandemic, the Russia-Ukraine conflict, and the climate change crises have generated colossal financing gaps which now portray mixed visions for the continent. Nonetheless, the new horizon presents a vast array of prospects in which DRM endeavors within the continent can blossom. First, African countries should expedite their respective ratification processes for entry into force and operationalization of the African Continental Free Trade Area (AfCFTA) agreement to harness the trade opportunities embedded therein. Secondly, unlocking the idle resources entrenched in sovereign wealth and pension funds is paramount. Thirdly, harnessing the digital technology potential especially, mobile technology is pivotal. Four, capital market deepening promotes financial asset diversification. Five, to reap optimal benefits from their rich resource endowments, African countries need to invest in sophisticated skills and technology. Six, the Base Erosion and Profit Shifting (BEPS) project provides many African countries with the opportunity to seal any tax evasion or avoidance loopholes employed by Multinational Corporations (MNCs). BEPS addresses the transfer pricing challenge and is also instrumental in taming illicit capital flight. Finally, mitigating the effects of the climate change crisis requires the transfer of environmentally sound technologies from developed to developing countries

Drivers of Public Health Expenditure in Kenya: Do Structural Breaks Matter?

Health forms the basic foundation of the quality of human life, which is an ultimate ingredient towards the productivity and efficiency of an economy. The rapid growth of health expenditure has emerged as an enormous concern for many households and governments globally. This study used timeseries data for the period 1985–2018 in unearthing the drivers of healthcare expenditure in Kenya, with a central focus on the role of health shocks. The study also sought to assess whether structural breaks mattered in a healthcare expenditure model. A public healthcare expenditure model was estimated using the Autoregressive Distributed Lag (ARDL) model. The findings revealed the presence of a long-run relationship between public health expenditure and its determinants in Kenya. Population growth rate and CO2 emissions (proxy to respiratory illnesses) were found to significantly and positively determine public health expenditure in the short run. This impact was insignificant in the long run. Similarly, GDP per capita and the number of HIV/AIDs infections positively and significantly determined public health expenditure in the long run. A key finding of this study highlighted the importance of testing for structural breaks in analyzing a time-series healthcare expenditure model. Previously, this is something that has been largely omitted in the Kenyan healthcare context. The structural break dummy variables significantly determined public health expenditure and, therefore, their incorporation in the model yielded a more accurate forecast with better econometric estimates. The findings will be useful in informing the government’s health budgetary allocation as well as the design of appropriate shock mitigation policies. This is paramount for the country in achieving not only Universal Health Coverage but also high-quality medical care to its citizens as envisioned in the ‘Big Four Agenda’ government priorities

The Impact of COVID-19 Pandemic on Social Welfare and the Health System Capacity of East African Economies: A Comparative Analysis

This study analyzed the degree of impact of COVID-19 on social welfare and health system capacity across some selected EAC countries using monthly series data for the period March 2020-May 2021. The potential Intensive Care Unit (ICU) bed and ventilator surge capacity were estimated based on the confirmed COVID-19 cases & the actual number of ICU beds and oxygen ventilators while the degree of variation of the pandemic’s impact on social welfare was analyzed using the Pooled Mean Group (PMG) estimator. The findings revealed the existence of significant gaps across hospitals in the EAC region in accommodating any potential surge in the caseload emanating from COVID-19. This was evidenced by a continuously rising number of confirmed COVID-19 cases against a backdrop of a limited number of ICU beds and ventilators needed to provide critical care. The PMG results revealed that COVID-19 significantly decreased the Consumer Price Index (CPI) in the long run. In the short run, the impact was negative and significant for Kenya but insignificant for Rwanda, South Sudan, and Uganda. Conversely, COVID-19 significantly increased oil prices in the long run. In the short run, the impact was positive and significant for South Sudan but negative and insignificant for Uganda. This study, thus, recommended adequate investment in the health sector targeted at a substantial increase in the number of ICU beds and ventilators. Further, governments within the region need to employ a coordinated approach in addressing welfare effects stemming from increased oil prices. There is a need to promote regional market integration & cooperation within the EAC region regarding oil. A robust & vibrant EAC oil market will enable countries within the region to harness optimal benefits from their oil reserves as well as withstand any global price shock dynamics that emanate from a pandemic of this nature

The Role of Indigenous Knowledge in Environmental Conservation in Africa: The Case of the Abaluyia of Western Kenya

No abstract available