Volume 3, Issue 3, June 2015, Page: 325-329
Determinants of Financial Independence in Developing Countries (A Case Study of Kenya)
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
Received: May 14, 2015;       Accepted: May 29, 2015;       Published: Jun. 11, 2015
DOI: 10.11648/j.ijefm.20150303.30      View  3403      Downloads  80
Abstract
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.
Keywords
Gross Domestic Product, Multilateral Debts, Bilateral Debts, Debt Structure
To cite this article
Dennis Muturi Muthara, Jane Ndirangu-Muiruri, 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. doi: 10.11648/j.ijefm.20150303.30
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