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Determinants of Financial Independence in Developing Countries (A Case Study of Kenya)

Received: 14 May 2015     Accepted: 29 May 2015     Published: 11 June 2015
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Abstract

The main objective of this study was to examine the determinants of financial independence in developing countries, with focus on Kenya. Two theories were looked into, the Dependency Theory and the Classical Dependency Theory. The research was based on fourteen departments in the Kenyan government. The three variables examined in this study include corruption, financial planning and balance of payment. The researcher measured to what extent each of the three variables affected financial dependency of a country. Secondary data from Transparency International, IMF reports, World Bank reports, Government reports by the auditor general, Vision 2030 reports, Kenya Economic Reports and other reports and journals was used. This data was analyzed using SPSS. This research established that there is a relationship between financial independence and financial planning as well as balance of payment. There was a positive correlation between financial planning and financial dependence and balance of payment and financial dependence. The researcher recommended that the government adopts better financial planning strategies such as reduction of recurrent expenditure and tightening the noose on revenue collection methods used as well as to improve on the amount of exports by expanding the range of products produced by the by the country for export.

Published in International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 3)
DOI 10.11648/j.ijefm.20150303.30
Page(s) 325-329
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Gross Domestic Product, Multilateral Debts, Bilateral Debts, Debt Structure

References
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[2] Antiam, A. (2009). Exchange Rates and International Finance. New York: Prentice Hall.
[3] Bourguignon, F. & Sundberg, M. (2007). Aid Effectiveness – Opening the Black Box. American Economic Review, 97(2), 316-321.
[4] CIA. (2013). “Kenya” The World Fact book. Central Intelligence Agency (2012).
[5] Crabbe, O. (1996). International Financial Markets. New York: Prentice Hall.
[6] Craig, B. & Dollar, D. (2000). Aid, Policy and Growth. The American Economic View.
[7] Fujita, M., Fabrice., H., Joachim, K. & Guoyong, L. (2009). Assessing the impact of the current financial and economic crisis on global FDI flows. UNCTAD.
[8] Glossary. (2011). U4:Anti-Corruption Resource Centre. CHR.Michelsen Institute.
[9] GOK. (2005). Millennium Development Goals status report. Nairobi: Government of Kenya.
[10] GOK. (2013). Kenya Economic Report 2013. Nairobi: Kenya Institute for Public Policy Research and Analysis.
[11] IMF. (2013). World Economic Outlook. IMF.
[12] Jeffrey, D. (2002). millenium development goals report. UNDP.
[13] John, J. (2008). "Government Debt and Deficits". indianapolis: encyclopedia of economics.
[14] Khapoya, V. (2008). The African Experience. New york: Prentice Hall.
[15] Kwabena, G. (. (2001). Corruption, economic growth and income inequality in Africa. Economics of governance, 183-207.
[16] Lorena, A. & Raul, A. (2001). Diagnosis corruption. 135-136.
[17] Mathur, B & Raman, K. (2012). Wide Vision. International Trade and Finance.
[18] Rogelio, A. (2011). IMF Survey Magazine: Countries and Regions. IMF.
[19] Senior, I. (2006). Corruption-The World’s Big C. westminster: Institute of Economic Affairs.
[20] Sloman, J. (2004). Economics. Penguin, 555-559.
[21] T.I. (2013). Corruption Perception Index. T.I.
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  • APA Style

    Dennis Muturi Muthara, Jane Ndirangu-Muiruri, William Kazungu Kingi. (2015). Determinants of Financial Independence in Developing Countries (A Case Study of Kenya). International Journal of Economics, Finance and Management Sciences, 3(3), 325-329. https://doi.org/10.11648/j.ijefm.20150303.30

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    ACS Style

    Dennis Muturi Muthara; Jane Ndirangu-Muiruri; William Kazungu Kingi. Determinants of Financial Independence in Developing Countries (A Case Study of Kenya). Int. J. Econ. Finance Manag. Sci. 2015, 3(3), 325-329. doi: 10.11648/j.ijefm.20150303.30

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    AMA Style

    Dennis Muturi Muthara, Jane Ndirangu-Muiruri, William Kazungu Kingi. Determinants of Financial Independence in Developing Countries (A Case Study of Kenya). Int J Econ Finance Manag Sci. 2015;3(3):325-329. doi: 10.11648/j.ijefm.20150303.30

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  • @article{10.11648/j.ijefm.20150303.30,
      author = {Dennis Muturi Muthara and Jane Ndirangu-Muiruri and William Kazungu Kingi},
      title = {Determinants of Financial Independence in Developing Countries (A Case Study of Kenya)},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {3},
      number = {3},
      pages = {325-329},
      doi = {10.11648/j.ijefm.20150303.30},
      url = {https://doi.org/10.11648/j.ijefm.20150303.30},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20150303.30},
      abstract = {The main objective of this study was to examine the determinants of financial independence in developing countries, with focus on Kenya. Two theories were looked into, the Dependency Theory and the Classical Dependency Theory. The research was based on fourteen departments in the Kenyan government. The three variables examined in this study include corruption, financial planning and balance of payment. The researcher measured to what extent each of the three variables affected financial dependency of a country. Secondary data from Transparency International, IMF reports, World Bank reports, Government reports by the auditor general, Vision 2030 reports, Kenya Economic Reports and other reports and journals was used. This data was analyzed using SPSS. This research established that there is a relationship between financial independence and financial planning as well as balance of payment. There was a positive correlation between financial planning and financial dependence and balance of payment and financial dependence. The researcher recommended that the government adopts better financial planning strategies such as reduction of recurrent expenditure and tightening the noose on revenue collection methods used as well as to improve on the amount of exports by expanding the range of products produced by the by the country for export.},
     year = {2015}
    }
    

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    AB  - The main objective of this study was to examine the determinants of financial independence in developing countries, with focus on Kenya. Two theories were looked into, the Dependency Theory and the Classical Dependency Theory. The research was based on fourteen departments in the Kenyan government. The three variables examined in this study include corruption, financial planning and balance of payment. The researcher measured to what extent each of the three variables affected financial dependency of a country. Secondary data from Transparency International, IMF reports, World Bank reports, Government reports by the auditor general, Vision 2030 reports, Kenya Economic Reports and other reports and journals was used. This data was analyzed using SPSS. This research established that there is a relationship between financial independence and financial planning as well as balance of payment. There was a positive correlation between financial planning and financial dependence and balance of payment and financial dependence. The researcher recommended that the government adopts better financial planning strategies such as reduction of recurrent expenditure and tightening the noose on revenue collection methods used as well as to improve on the amount of exports by expanding the range of products produced by the by the country for export.
    VL  - 3
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Author Information
  • School of Business of Technical, University of Mombasa, Mombasa, Kenya

  • School of Business of Karatina University, Karatina, Kenya

  • School of Business of Technical, University of Mombasa, Mombasa, Kenya

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