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dc.contributor.authorMuli, James M.
dc.contributor.authorOcharo, Kennedy N.
dc.date.accessioned2018-07-18T09:05:03Z
dc.date.available2018-07-18T09:05:03Z
dc.date.issued2018-07
dc.identifier.citationInternational Journal of Development and Sustainability Volume 7 Number 5 (2018): Pages 1688-1710en_US
dc.identifier.issn2186-8662
dc.identifier.urihttp://hdl.handle.net/123456789/1940
dc.description.abstractKenya has experienced persistent current account deficits that have remained underneath the threshold that economists would consider sustainable. At the point when a nation runs steady current account deficit for a long period, it raises worries about the sustainability of this deficit. The persevering current account deficit has led to increase of liabilities to the rest of the world that are financed by the capital account surplus. These should be paid back in the long run. There is no consensus as regards the relationship between external debt servicing and the current account balance in Kenya. The main objective of this study was to analyze the relationship between external debt servicing and current account balance in Kenya. Vector error correction model (VECM) was utilized because there was insufficient theory that connects these variables. The study found that external debt service granger causes current account balance in Kenya. Policies on external debt management should be carefully designed not to weaken macroeconomic fundamentals because they take long time before fizzing out.en_US
dc.language.isoenen_US
dc.subjectCurrent Account Balanceen_US
dc.subjectDebt Servicingen_US
dc.subjectBalance of Paymentsen_US
dc.subjectKenyaen_US
dc.titleExternal debt servicing and Current account balance in Kenyaen_US
dc.typeArticleen_US


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