December 2014
Fixed Income Market Efficiency: Evidence from Kenya’s 10-Year Local Currency Bond
This paper tests for long memory in the yield changes and volatility of Kenya’s benchmark 10-year government bond, in order to evaluate the informational efficiency of the local currency market. Using the ARFIMA-FIGARCH model the statistical properties of yield changes and volatility are simultaneously estimated. Evidence of long memory in both yield changes and volatility are conclusively demonstrated. This...
December 2014
Capital Account Liberalisation and Foreign Direct Investmentin Nigeria: A Bound-Testing Approach
This study focuses on the neoclassical counter-revolution framework to investigate the relationship between capital account liberalisation and foreign direct investment in Nigeria for the periods 1980-2011. The technique of analysis employed is the Bound-Testing Approach. This technique, which was later re-parameterized to investigate the short-run dynamics, is primarily used to ascertain the long-run equilibrium...
December 2014
Credit Demand Amongst Farmers in Mukono District, Uganda
The role of credit in promoting economic activity cannot be underestimated. Nevertheless, credit extension to the agricultural sector in Uganda is dismal compared to other sectors. This study uses cross sectional data collected from 127 farmers in Mukono District, Uganda to shed some light on access to, and the characteristics of demand for credit among the farming communities. We employ the binary logit model...
December 2014
Determinants of Informal Employment: A Case of Tanzania’s Construction Industry
This paper analyses the determinants of informal employment in Tanzania’s construction industry. A Logit regression model is employed in estimating factors that influence the choice of type of employment (formal versus informal) for micro and small entrepreneurs (MSEs). The results reveal that higher earnings in the informal compared to the formal settings – given the professional status of the micro and...
December 2014
The Impact of Bank and Stock Market Developments on Economic Growth in Zimbabwe: 1988 To 2012
The paper examines the short and long run impact of bank and stock market developments on growth in Zimbabwe using annual data from 1988-2012, inclusive. The study uses a financially-augmented production growth function and applies the Auto Regressive Distributed Lag (ARDL) approach and the error correction mechanism to simultaneously examine the short and long run relationships. Bank and stock market developments...
