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

References: Adekanye K.L (2005) public finance management in developing countries, first Edition, Longman publishers. Ahmed J.K, (2005) public expenditure policies; First Edition; roll publishers Baumo J.A (2003) Public expenditure management ; first Edition; Pearson Publishers. Borg, W., & Gall, M. D. (1989). Educational research: An introduction. (5th ed.). New York: Longman. Bryman, A and Bell, E (2003) Business Research Methods. Oxford University Press Doering et al (2001), Concepts and practices, 2nd edition, Pitman Publishers, USA Donald C. (2006) Synthesizing Research; A guide for Literature Reviews (3rd edn) Sage: Thousand Oaks Elhiraika J.R (1994) Business management; second Edition; Longman Publishes. Fin Access (2007) ,Financial institution and banking survey, Financial Sector Deepening, Nairobi Kenya Frances Roland (1997,) Training Needs Analysis, 8th edition, Prentice Hall, London. Government of Kenya (1939) Government financial regulations and procedures, Government printers, Nairobi. Government of Kenya (2001) “The procurement Bill 201”, Government printers, Nairobi. Gregory H. S, (1988), Ten Keys to Dynamic Customer Relations, Horizon Publishers & Distributors Inc, USA Hannagan Tim, (1998), Management Concepts and Practices, 2nd edition, Pitman Publishers, USA. Harwlow L.K (2002) Fiscal management; First Edition; British press. John Bellamy Foster (May 2008). "Sweezy in Perspective". Monthly Review. http://www.monthlyreview.org/080526foster.php. Kluwer et al,(2002), Knowledge Management – A Blueprint for Delivery, Elsevier Publishers, Amazon Kotler (1987), strategic Marketing for educational institutions,3rd edition ,prentice hall, Englewood cliffs. Lauden et all (2003) Management pf productivity, 3rd edition, John wiley and sons, USA. Marguerite S Robinson (2001), The microfinance revolution: sustainable finance for the poor, Irwin Mc Grawhill, Washington D.C Mugambi S.E, (2006) procurement Finance management; Frit Edition; Hull publishers. Mugenda M. O. and Mugenda A. (1999), Research Methods: Qualitative and Quantitative Approaches, African Centre for Technology Studies, Nairobi, Kenya Mugenda, O.M and Mugenda, A.G (2003) Research Methods, Quantitative & Qualitative Approaches, Acts Press, Nairobi Musgrave L.H (1987), public Finance management; first edition; Hull publishers. Ngechu. M. (2004), Understanding the research process and methods. An introduction toresearch methods Onserio et al ( 2001) Quality Management ,2nd edition, Prenctice Hall, New Delhi ,India Peter Drunker (1997) Human resource management, 6th edition, prentice hall publishers Richard Timberlake (August 2005). "Gold Standards and the Real Bills Doctrine in U.S. Monetary Policy". Econ Journal Watch. Richard, B C, et al (2001), Operations Management for Competitive Advantage, Schermerhorn, John R (1989), Management for Productivity, 3rd edition, , John Wiley and Sons, USA. Schumpeter, J.A. (1961) The theory of economic development : an inquiry into profits, capital, credit, interest, and the business cycle / translated from the German by Redvers Opie New York: OUP Stoner A F, et al , (1995) Management, 6th edition, Prentice Hall. New Jersey. Stoner C. R et al (1998), Business an Integrated Framework, Irwin Mc Grawhill, New York. William A.A., (2005), public expenditure management;, First Edition, Newline publisher. William B, (1991), Managing Quality Customer Service, Kogan Page Ltd, Great Britain. William, (1993) Quality Customer Service, 3rd edition, Crisp Publications, USA.