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2011 (Vol. 3, Issue: 3)
Article Information:

Firm Level Determinants of Investment in the Kenyan Manufacturing Firm

Augustus S. Muluvi
Corresponding Author:  Augustus S. Muluvi 

Key words:  Competitiveness and business environment factors, investment behavior, investment intensity, propensity to invest, , ,
Vol. 3 , (3): 93-98
Submitted Accepted Published
2011 April, 16 2011 June, 02 2011 September, 15
Abstract:

This study uses firm level data to investigate the investment behavior in the Kenyan manufacturing firms. Using Probit and Tobit regression models the results shows that factors determining the decision to invest are different from those determining the share invested. Overall the results shows low levels of investment by Kenyan manufacturing firms and the importance of firm level data in explaining the investment behavior. On the policy front the paper observes the role of government in the provision of stable macroeconomic policies, affordable credit and basic infrastructure in order to attract investment in this sector.
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  Cite this Reference:
Augustus S. Muluvi, 2011. Firm Level Determinants of Investment in the Kenyan Manufacturing Firm.  Current Research Journal of Economic Theory, 3(3): 93-98.
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ISSN (Online):  2042-485X
ISSN (Print):   2042-4841
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