Determinants of Financial Independence in Developing Countries (A Case Study of Kenya)
International Journal of Economics, Finance and Management Sciences
Volume 3, Issue 3, June 2015, Pages: 325-329
Received: May 14, 2015;
Accepted: May 29, 2015;
Published: Jun. 11, 2015
Views 4792 Downloads 144
Dennis Muturi Muthara, School of Business of Technical, University of Mombasa, Mombasa, Kenya
Jane Ndirangu-Muiruri, School of Business of Karatina University, Karatina, Kenya
William Kazungu Kingi, School of Business of Technical, University of Mombasa, Mombasa, Kenya
Follow on us
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.
Gross Domestic Product, Multilateral Debts, Bilateral Debts, Debt Structure
To cite this article
Dennis Muturi Muthara,
William Kazungu Kingi,
Determinants of Financial Independence in Developing Countries (A Case Study of Kenya), International Journal of Economics, Finance and Management Sciences.
Vol. 3, No. 3,
2015, pp. 325-329.
Adil, M. (2007). Capital formation, Globalization, Imperialism and monopoly capitalism. International Journal of Business Research, 277-345.
Antiam, A. (2009). Exchange Rates and International Finance. New York: Prentice Hall.
Bourguignon, F. & Sundberg, M. (2007). Aid Effectiveness – Opening the Black Box. American Economic Review, 97(2), 316-321.
CIA. (2013). “Kenya” The World Fact book. Central Intelligence Agency (2012).
Crabbe, O. (1996). International Financial Markets. New York: Prentice Hall.
Craig, B. & Dollar, D. (2000). Aid, Policy and Growth. The American Economic View.
Fujita, M., Fabrice., H., Joachim, K. & Guoyong, L. (2009). Assessing the impact of the current financial and economic crisis on global FDI flows. UNCTAD.
Glossary. (2011). U4:Anti-Corruption Resource Centre. CHR.Michelsen Institute.
GOK. (2005). Millennium Development Goals status report. Nairobi: Government of Kenya.
GOK. (2013). Kenya Economic Report 2013. Nairobi: Kenya Institute for Public Policy Research and Analysis.
IMF. (2013). World Economic Outlook. IMF.
Jeffrey, D. (2002). millenium development goals report. UNDP.
John, J. (2008). "Government Debt and Deficits". indianapolis: encyclopedia of economics.
Khapoya, V. (2008). The African Experience. New york: Prentice Hall.
Kwabena, G. (. (2001). Corruption, economic growth and income inequality in Africa. Economics of governance, 183-207.
Lorena, A. & Raul, A. (2001). Diagnosis corruption. 135-136.
Mathur, B & Raman, K. (2012). Wide Vision. International Trade and Finance.
Rogelio, A. (2011). IMF Survey Magazine: Countries and Regions. IMF.
Senior, I. (2006). Corruption-The World’s Big C. westminster: Institute of Economic Affairs.
Sloman, J. (2004). Economics. Penguin, 555-559.
T.I. (2013). Corruption Perception Index. T.I.