Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

The export led growth hypothesis, advocates that export growth is key in enhancing economic growth yet no consensus has been reached on the causal relationship between the two. This paper examines the validity of the export led growth hypothesis in Kenya for the period 1980 to 2011 using time series data. The aim of the paper is to determine the direction of causality between export growth and economic growth. A seven variable (GDP, export, import, capital, labour, real exchange rate and terms of trade) model is estimated using the error correction model and granger causality techniques. The results indicate that export led growth hypothesis is valid for Kenya and there exist a unidirectional causality flowing from exports to economic growth. Export diversification, value addition on the export goods and currency stability are some of the recommended policies.

Counterfeiting is unauthorised imitative production of products or a service without authority from the owner’s which are protected by intellectual property rights in order to make profits. Counterfeit medicines are part of the broader phenomenon of substandard pharmaceuticals – medicines manufactured below established standards of quality and therefore dangerous to patients’ health and ineffective for the treatment of diseases. The difference is that counterfeits are deliberately and fraudulently mislabelled with respect to identity or source. The objectives of this study was to determine the effect of counterfeit on the pharmaceutical distribution and retailing in Mombasa County and the roles of pharmaceutical distributors and retailers in combating counterfeit. The findings from the study were that counterfeits had an effect in pharmaceutical distribution and retailing and it was noted that the least effect of counterfeit drugs was that they can lead to death of patients. The effects that counterfeit lead to loss of tax to the government and that they affected investors investments were rated above average. Counterfeits affect sales, causes loss of goodwill of the brand, innovation is affected and that the image of the pharmacy is affected were rated highly by most of the respondents. On average the pharmacist played the role of ensuring that the patients are aware of counterfeit drugs. They also made sure that the patients were aware of anti-counterfeiting strategies, the discussed the patient medication first before dispensing were highly rated. The respondents also indicated that they have continuous education, resources affect identification of counterfeit drugs and that technology is a challenge to branded products.

Premiums are payable to an insurance company for a cover against a certain risk. Credibility models are actuarial tools to distribute premiums fairly among a heterogeneous group of policyholders. The problem is usually to devise a way of combining the experience of the group with the experience of the individual risk the better to calculate the premium. Credibility theory gives the solution to this problem. Most papers and researches on this subject are difficult to follow through, especially without the basic knowledge of Credibility theory. They also involve fairly recondite mathematics. This study describes the basic concept of Credibility theory and the standard methods of finding the Credibility factor, which are the Limited Fluctuation, Greatest Accuracy, and Bayesian. This is basically giving the areas of study there are in credibility theory. Once we have the insurance claim experience with us, we need to fit mathematical regression models to it. Usually, the data is assumed to be normal, and so we are restricted. The solution to this problem is the use of Generalized Linear Models which is looked at herein in this study. The topics at hand are generally broad and therefore for deeper comprehensive study the reader is advised to look at the numerous original papers on the subject.

There has been an increased concern over high credit risk for micro and medium loans in financial institutions. High interest rates, collaterals for micro loans, credit rating, business experience and training, and loan recovery play an important role in managing credit risk for micro and medium loans. The objectives of this study was to establish the influence of interest rates on credit risk management of Micro and Medium loans in equity bank limited, to find out the influence collaterals play in credit risk management of Micro and medium enterprise loans in equity bank, to assess the influence of business knowledge and experience in credit risk management of Micro and Medium enterprise loans in equity bank, to find out the influence of credit rating in credit risk management of micro and medium loans and to find out the influence of recovery mechanism on credit risk management of micro and medium enterprise loans in equity bank limited. The study utilized descriptive research design and employed stratified random sampling to select a sample of 80 customers from a target population of 5200 customers of Equity bank in Thika town. Both primary and secondary data was collected through interviews, questionnaires and review of existing bank and central bank records. The data collected was analyzed using both quantitative and qualitative methods. Frequencies, graphs and proportions were used in presentation and interpretation of data. Use of Statistical Package for the Social Sciences simplified data analysis. The study found out that as interest rate went up, credit risk increased as the business profitability was reduced by high interest rate at times making it impossible to break even. Collateral was found to influence credit risk management. Where customers felt that security used for the loan was adequate, the rate of default was low. Similarly business knowledge and experience also influenced credit risk management. Most of the non performing loans were for those customers who had less business experience at the time of borrowing. Another factor influencing credit risk management is credit rating. It was found out that customers with a good credit history were less likely to default. Recovery mechanism is another factor influencing credit risk management. It was found out that many non performing customers paid after legal action was instituted against them. The research concluded that interest rate affects customers’ repayment ability and consequently default rate. Similarly when adequate security is used, risk of default reduces since in event of default, the pledged asset can be sold to recover the amount lent. The study also concluded that customers with more business experience are less risky to lend to compared to customers with little or no experience. Similarly customers with a good repayment history are less risky than customers with a poor credit history. The study further concluded that a good recovery mechanism reduced credit risks. The study recommended that, lending institution should carry out a comprehensive market survey to identify an interest rate commensurate with the prevailing business environment. Lending institutions should also ensure that the loans are adequately secured. The institutions should be cautious in lending to customers without business experience or without existing businesses. The institutions should also mitigate against lending to customers with a poor credit history. Recovery mechanism should be planned and instituted promptly in the event of default.