Effect of Foreign Exchange Rate on Maritime Sector Performance in Enhancing Economic Growth in Kenya

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Sudi Amani Mwasinago
Sudi Amani Mwasinago
2
Richard Siele
Richard Siele
3
Thomas Agak
Thomas Agak

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GJHSS Volume 21 Issue E4

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Maritime transport remains backbone of globalized trade and manufacturing supply chain, as more than 80% of world merchandise trade by volume is carried by sea. Maritime transport in Kenya takes care of 90% of Kenya’s international trade by volume. The objective of this study was to establish effect of labor productivity on maritime sector performance in enhancing economic growth in Kenya. Target population was Kenya Ports Authority and Kenya Ferry Services while Kenya Maritime Authority coordinated implementation of policies relating to maritime affairs. The study was guided by the Solow growth model and the production theory. The study adopted explanatory research design employing panel data using data on annual basis over the period 2000-2019. Simple Linear Regression and GMM Models were utilized. Using STATA 13.0 and applying Simple Regression model, results indicated that coefficient of foreign exchange rate was 3.5694 which was positive and significant at 5% level, , implying every one percent increase in coefficient of foreign exchange rate, output increased by 3.5694%.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Sudi Amani Mwasinago. 2021. \u201cEffect of Foreign Exchange Rate on Maritime Sector Performance in Enhancing Economic Growth in Kenya\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 21 (GJHSS Volume 21 Issue E4): .

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Sea trade's influence on Kenya's economy and foreign exchange rates analyzed.
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GJHSS Volume 21 Issue E4
Pg. 25- 29
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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 910103
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August 24, 2021

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English

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Maritime transport remains backbone of globalized trade and manufacturing supply chain, as more than 80% of world merchandise trade by volume is carried by sea. Maritime transport in Kenya takes care of 90% of Kenya’s international trade by volume. The objective of this study was to establish effect of labor productivity on maritime sector performance in enhancing economic growth in Kenya. Target population was Kenya Ports Authority and Kenya Ferry Services while Kenya Maritime Authority coordinated implementation of policies relating to maritime affairs. The study was guided by the Solow growth model and the production theory. The study adopted explanatory research design employing panel data using data on annual basis over the period 2000-2019. Simple Linear Regression and GMM Models were utilized. Using STATA 13.0 and applying Simple Regression model, results indicated that coefficient of foreign exchange rate was 3.5694 which was positive and significant at 5% level, , implying every one percent increase in coefficient of foreign exchange rate, output increased by 3.5694%.

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Effect of Foreign Exchange Rate on Maritime Sector Performance in Enhancing Economic Growth in Kenya

Sudi Amani Mwasinago
Sudi Amani Mwasinago
Richard Siele
Richard Siele
Thomas Agak
Thomas Agak

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