Effect of Corruption on Kenyas Economoc Growth
UNIVERSITY OF NAIROBI
SCHOOL OF ECONOMICS
THE RELATIONSHIP BETWEEN CORRUPTION AND ECONOMIC GROWTH IN KENYA
MULEMBO ENOKA X75/3844/2008
GERALD NGILAI MUEMA X74/3741/2008 GITHINJI JOSEPH MULWA X74/3726/2008 WANGARI ELIJAH GACHOHI X75/3777/2008 KIRU JOSEPH KAMAU X74/ 3599 /2008
TABLE OF CONTENTS
INTRODUCTION 1
1.1 Background to the study 1
1.1.1 Ministry of Finance Kenya………………………………………………………... 2
1.2 Research Problem Statement 3
1.3 Research objectives 3
1.3.1 General Objective………………………………………………………………….. 3
1.3.2 Specific Objectives…………………………………………………………………..3
1.4 Research Questions 4
1.5 Significance of the Study 4
1.6 Research Limitations 5
1.7 Scope of the Study 5
1.8 Definition of Key Terms 6
CHAPTER TWO: LITERATURE REVIEW 7
2.1 Introduction 7
2.2 Theoretical Review 7
2.2.1 Theory of public choice……………………………………………….……………. 7
2.2.2 Theory of Revenue Extraction………………………………………………….… 8
2.2.3 Theory of externalities………………………………………………………….… 9
2.2.4 Theory of public goods………………………………………………………….… 9
2.2.5 Theoretical Framework……………………………………………………..…….. 10
2.3 Empirical Review 10
2.3.1 Foreign aid……………………………………………………...…………… 11
2.3.2 Government Policy……………………………………………………………..… 13
2.4 Conceptual Framework 13
Figure 1.2 Conceptual Framework 13
CHAPTER THREE: METHODOLOGY 14
3.1 Introduction 14
3.2 Research design 14
3.3 Data Type and Sources 14
3.4 Model Specification
3.5Assumptions of our Model 15
3.6 Validity and reliability 15
3.7 Data analysis and presentation 16
REFERENCES 17
CHAPTER ONE INTRODUCTION 1.1 Background to the study
Public Expenditure Management (PEM) in Kenya is weak as indicated by a big gap between the original printed budget and outturn, and a huge stock of expenditure arrears. As a result, the budget is an ineffective instrument for strategic
SCHOOL OF ECONOMICS
THE RELATIONSHIP BETWEEN CORRUPTION AND ECONOMIC GROWTH IN KENYA
MULEMBO ENOKA X75/3844/2008
GERALD NGILAI MUEMA X74/3741/2008 GITHINJI JOSEPH MULWA X74/3726/2008 WANGARI ELIJAH GACHOHI X75/3777/2008 KIRU JOSEPH KAMAU X74/ 3599 /2008
TABLE OF CONTENTS
INTRODUCTION 1
1.1 Background to the study 1
1.1.1 Ministry of Finance Kenya………………………………………………………... 2
1.2 Research Problem Statement 3
1.3 Research objectives 3
1.3.1 General Objective………………………………………………………………….. 3
1.3.2 Specific Objectives…………………………………………………………………..3
1.4 Research Questions 4
1.5 Significance of the Study 4
1.6 Research Limitations 5
1.7 Scope of the Study 5
1.8 Definition of Key Terms 6
CHAPTER TWO: LITERATURE REVIEW 7
2.1 Introduction 7
2.2 Theoretical Review 7
2.2.1 Theory of public choice……………………………………………….……………. 7
2.2.2 Theory of Revenue Extraction………………………………………………….… 8
2.2.3 Theory of externalities………………………………………………………….… 9
2.2.4 Theory of public goods………………………………………………………….… 9
2.2.5 Theoretical Framework……………………………………………………..…….. 10
2.3 Empirical Review 10
2.3.1 Foreign aid……………………………………………………...…………… 11
2.3.2 Government Policy……………………………………………………………..… 13
2.4 Conceptual Framework 13
Figure 1.2 Conceptual Framework 13
CHAPTER THREE: METHODOLOGY 14
3.1 Introduction 14
3.2 Research design 14
3.3 Data Type and Sources 14
3.4 Model Specification
3.5Assumptions of our Model 15
3.6 Validity and reliability 15
3.7 Data analysis and presentation 16
REFERENCES 17
CHAPTER ONE INTRODUCTION 1.1 Background to the study
Public Expenditure Management (PEM) in Kenya is weak as indicated by a big gap between the original printed budget and outturn, and a huge stock of expenditure arrears. As a result, the budget is an ineffective instrument for strategic
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