- Title
- The determinants of manufacturing sector growth among East African Community countries
- Creator
- Musiita, Benjamin
- Subject
- Economic development
- Subject
- Industrial productivity -- East African Community
- Subject
- Supply and demand
- Date Issued
- 2023-12
- Date
- 2023-12
- Type
- Doctoral theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/65874
- Identifier
- vital:74280
- Description
- Given the concern of the meagre contribution of the manufacturing sector output in total GDP within the East African Community (EAC) member states, the purpose of this study was to in-vestigate whether growth rates in the manufacturing sector output of the five East African Com-munity member states can be explained by variations in the factors of input, productivity and governance. The study benchmarks the growth frameworks of neoclassical growth and its exten-sions, as well as the institutionalist growth theory, which guided the formulation of empirical growth models. Estimation is achieved by implementing first difference generalised method of moments (D-GMM) on a linear dynamic panel model through the specific-to-general modelling technique. Among the factors motivated by the neoclassical growth paradigm and its extensions, estimates from this study indicate that human capital and the gross capital formation input factors can help in predicting variations in manufacturing sector output growth in EAC member countries. Among the productivity factors, estimates show that higher lending rates and increased openness had a significant negative effect on the growth of the manufacturing sector among EAC member states. The productivity variables of foreign direct investment, inflation, domestic credit and financial deepening showed no ability to influence manufacturing sector growth in the EAC member states. Estimates further indicate that among the governance factors, control of corrupt-ion could help boost manufacturing sector output growth among EAC member states. Results from this study show that the governance variables of voice and accountability, and of regulatory quality, had an insignificant effect on the growth of manufacturing sector output among EAC member states. So the study shows that manufacturing sector output variations in EAC member states can partially be explained by the neoclassical and endogenous growth models, with little efficacy in the institutional growth model, suggesting the incompleteness of the growth frame-works adopted in assessing the sources of growth in manufacturing sector output in EAC mem-ber states. The study results suggest that the EAC member states can boost their manufacturing sector output growth by implementing policies and programmes that create incentives for more additions to capital stocks and improving the quality of human resources while equipping people with skills, establishng financial instituitions which offer access to cheap capital, like the East African Development Bank, and adopting import substitution growth strategies which could re-duce the quantity of imports and limit outflows of foreign exchange.
- Description
- Thesis (PhD) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2023
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (xiv, 212 pages)
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Musiita, B.pdf | 2 MB | Adobe Acrobat PDF | View Details Download |