Authors :
Don Ouma Okello; John Byaruhanga
Volume/Issue :
Volume 9 - 2024, Issue 1 - January
Google Scholar :
https://tinyurl.com/49stxfun
Scribd :
https://tinyurl.com/bdzdd9h9
DOI :
https://doi.org/10.5281/zenodo.10795942
Abstract :
Foreign direct investment's effect on Kenya's
poverty as examined in this article. Across the world,
people are becoming increasingly concerned about
poverty. The wealth disparity widens annually, and
conditions have gotten worse in many nations. Less than
10% of Kenyans hold more wealth than the poorest 90%
of the population, indicating a significant wealth gap in
the country. By 2030, Kenya, a developing nation, hopes
to become industrialized. Government agencies need to
comprehend the causes, trends, and impacts of poverty
in order to develop policies that would guarantee good
living standards and an equal distribution of income by
2030. To achieve the 2030 goal, it is expected that
economic development would improve. Finding out how
poverty and foreign direct investment were related in
Kenya was the study's main objective. The years 2010
through 2020 were covered by the time series data
utilized in this investigation. The study established a
link between poverty and foreign aid using a causal-
effect research technique. Although the variables in
question are stationary on the initial disparity, the
existence of the unit root at levels was established by the
Argumenta Dickey Fuller test for unit root. Multi-
collinearity was absent, having a variance inflation
factor (VIF) test result of 1.06<10. A Durbin test result
of 1.931<2.5 indicated the absence of serial association.
Descriptive statistics, which include the measure of
dispersion, were utilized to illustrate the general
characteristics of the sample. However, correlation
analysis revealed a somewhat negative relationship (-
0.5331) between foreign direct investment and poverty.
Three cointegrating equations were found via the
Johansen test for cointegration. The estimated model
regression was (-0.522707, p<0.0500). According to the
report, in order to expand the number of jobs accessible
to the unskilled and semi-skilled labor force, the
government should promote projects that need a large
labor force and foster an atmosphere that is supportive
to investors. To draw in more foreign investors across a
range of industries, the government should also provide
free trade agreements.
Keywords :
Poverty, Foreign Direct Investment.
Foreign direct investment's effect on Kenya's
poverty as examined in this article. Across the world,
people are becoming increasingly concerned about
poverty. The wealth disparity widens annually, and
conditions have gotten worse in many nations. Less than
10% of Kenyans hold more wealth than the poorest 90%
of the population, indicating a significant wealth gap in
the country. By 2030, Kenya, a developing nation, hopes
to become industrialized. Government agencies need to
comprehend the causes, trends, and impacts of poverty
in order to develop policies that would guarantee good
living standards and an equal distribution of income by
2030. To achieve the 2030 goal, it is expected that
economic development would improve. Finding out how
poverty and foreign direct investment were related in
Kenya was the study's main objective. The years 2010
through 2020 were covered by the time series data
utilized in this investigation. The study established a
link between poverty and foreign aid using a causal-
effect research technique. Although the variables in
question are stationary on the initial disparity, the
existence of the unit root at levels was established by the
Argumenta Dickey Fuller test for unit root. Multi-
collinearity was absent, having a variance inflation
factor (VIF) test result of 1.06<10. A Durbin test result
of 1.931<2.5 indicated the absence of serial association.
Descriptive statistics, which include the measure of
dispersion, were utilized to illustrate the general
characteristics of the sample. However, correlation
analysis revealed a somewhat negative relationship (-
0.5331) between foreign direct investment and poverty.
Three cointegrating equations were found via the
Johansen test for cointegration. The estimated model
regression was (-0.522707, p<0.0500). According to the
report, in order to expand the number of jobs accessible
to the unskilled and semi-skilled labor force, the
government should promote projects that need a large
labor force and foster an atmosphere that is supportive
to investors. To draw in more foreign investors across a
range of industries, the government should also provide
free trade agreements.
Keywords :
Poverty, Foreign Direct Investment.
