Open Access Original Research Article

The Theoretical Strategic Approach in the Feasibility Study

Ali Hadi Jebrin

Journal of Economics, Management and Trade, Page 1-14
DOI: 10.9734/JEMT/2017/36268

The paper aims to find the relationship between strategic approach and feasibility studies
This importance is emphasis from the important role of organizations in making strategic decisions in filed project management.

The contents of this effort aimed at establishing a new understanding of the meaning regarding the principles of fit feasibility study to the approach of strategic in performance and competitiveness in project management according to the concept of the (Espoused Theory).

Based on the above we can determine the objectives of the feasibility study from through environmental analysis of the project in both internal and external environment so they need know the technical feasibility organizational structure and business plan and project costing and financial analysis.

Open Access Original Research Article

Growth Effects of Public Recurrent Expenditure in Kenya

Alex Oguso

Journal of Economics, Management and Trade, Page 1-20
DOI: 10.9734/JEMT/2017/36172

Aims: There is a growing consensus that economic growth is a key enabler for successful and sustainable fiscal consolidation. In view of this, this paper examines the growth effects of the high budgetary allocation for public recurrent costs in Kenya. Additionally, the paper compares the growth effects of the public recurrent spending and public investment spending in Kenya at sector level.

Methodology: The study makes use of sector level macro panel data from fiscal year 1999/2000 to 2014/2015, with a cross-sectional unit of seven sectors. The Hausman test and Random effects results, the presence of panel cointegration in addition to the fact that the variables included in the model are integrated of different orders led to use of a panel ARDL (Autoregresessive Distributed Lag) model. Specifically, the Pooled Mean Group (PMG) estimator is employed in the analysis.

Results: The findings show that an increase in share of public recurrent costs in sectoral GDP has an insignificant negative effect on sectoral growth in the short run but a significant negative effect in the long run. The results also show that an increase in share of sectoral development expenditure has a positive but insignificant effect in the short run but a significant growth effect in the long run.

Conclusion: The results confirm that the persistent rise in public recurrent costs in Kenya is actually growth retarding whereas development spending is growth enhancing in the long run.

Open Access Original Research Article

Current Account Deficit Dynamics in Kenya: Evidence from Time-series Data (1980-2014)

Stephen Benard Mbithi, Cyrus Mutuku

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/JEMT/2017/31334

As a rule of thumb, current account deficit should not exceed 5% of GDP. If it exceeds, it must raise concerns about its sustainability. In Kenya, current account balance deficit increased to 10.5% of the GDP by 2014 and 8.3% in 2015. Empirical evidence shows that there is an unsustainable current account deficit in Kenya. Unsustainable current account deficits are a potential recipe for a currency crisis and current account reversal which have negative implications on macroeconomic stability of a country. This study sought to determine the drivers of current account balance and policies that should be put into place to revert the balance to sustainable levels. It used time series data spanning 1980-2014 and employed VAR and VECM models. The estimated long run co-integrating model revealed that financial deepening in Kenya has no effect on the current account balance at 5%, 10% and 1% statistical significance levels. However, trade openness, oil prices, fiscal deficit, output gap, real effective exchange rate, GDP per-capita, dependency ratio and net financial assets significantly affect current account balance.

Open Access Original Research Article

Constraints to Fiscal Consolidation Efforts in Kenya: Analysis of the Persistent Growth in Public Recurrent Costs

Alex Oguso

Journal of Economics, Management and Trade, Page 1-20
DOI: 10.9734/JEMT/2017/36002

Aims: Kenya faces substantial fiscal consolidation needs in order to create fiscal space for financing its Vision 2030 development projects, sustainable development goals and the current government’s election pledges. To achieve these, the country needs to allocate resources optimally. However, the government has found it a challenge to control the persistent growth in public recurrent costs, which has further led to challenges in carrying out sustainable fiscal consolidation. This paper looks into the factors behind the persistent rise in public recurrent costs in Kenya that have also acted as constraints to fiscal consolidation efforts in the country.

Methodology: The study employs four ARDL error correction models in the analysis using 2000 Quarter 1 to 2015 Quarter 4 time series data.

Results: The study shows that persistent rise in public recurrent costs is influenced by the real minimum wage adjustments and the devotion of real tax revenue towards recurrent spending at the expense of development expenditures. Inflation was found to erode the real value of non-wage public spending leading to upward adjustment of their nominal values. Real effective exchange rates was found to be significant in explaining the increases in real development expenditure. Surprisingly, an occurrence of a general election was found to lead to a decline in real public recurrent costs and compensation of government employees implying that the government tend to focus more on fiscal discipline during the election periods.

Conclusion: The study concludes that the persistent growth in public recurrent costs and the growth in public investment spending are not influenced significantly by the same factors and that frequent public wage adjustments and the devotion of domestic taxes to financing public recurrent costs are the main constraints to sustainable fiscal consolidation efforts in Kenya.

Open Access Original Research Article

Impact of Consumer Multidimensional Online Trust-Risk in Adopting Togolese Mobile Money Transfer Services. Structural Equation Modelling Approach

Komlan Gbongli, Tamas Csordas, Kingsford Kissi Mireku

Journal of Economics, Management and Trade, Page 1-17
DOI: 10.9734/JEMT/2017/36745

Mobile money transfer (MMT) services could generate an extra revenue source for both banks and telecom services providers. Hitherto, this expectation is sluggish to emerge in Togo obviously. The determinants of MMT acceptance seem unrevealed because of consumer trust and perceived risk from the online platform. The research broadens this issue by concurrently groping multidimensional trust and multifaceted perceived risk. A sample was collected from the populace of Lomé –Togo which yielded 538 valid questionnaires. Directed by the conceptual framework, twelve hypotheses were proposed and tested employing structural equation modelling (SEM) techniques. Results revealed all trust antecedents (dispositional, technology, and vendor) trust to have a strong positive influence on trust. It is disclosed that perceived privacy risk is not only an utmost dominant factor for perceived risk but also the overall result. However, no statistical significance was shown validating perceived time risk on aggregate perceived risk, similar to the cost perception towards trust construct. While Trust negatively influences perceived risk, both factors with their antecedents found to explain the acceptance of MMT among Togolese consumers efficaciously. It enlightens further on the direction of the trust-risk relationship. The findings were discussed along with various implications and future research.