The Impact of Chinese Investment on the Kenyan Economy
Conference Year
January 2020
Abstract
This paper considers the impact on the Kenyan economy of China’s $3.2 billion investment (as a part of their global Belt and Road Initiative) in a new railway in Kenya. This investment is the largest investment in infrastructure that Kenya has seen since it gained independence, as such this is a large investment in physical capital, a factor of economic growth. This paper applies to the impact of an external government’s (China’s) investment on the Kenyan economy. This investment was made in the summer of 2017, as such this paper will examine the Kenyan economy starting in 2017 and continue to predict future impacts on the Kenyan economy. The data used in this research has been sourced from the World Bank and TheGlobalEconomy.com. The Solow Growth model and Mankiw Romer Weil model will be used and their predictions for the Kenyan economy compared. These models will be used to study the effect of an increase in physical capital investment, sk, on the Kenyan economy.
Primary Faculty Mentor Name
Professor Nathalie Mathieu-Bolh
Status
Undergraduate
Student College
College of Arts and Sciences
Program/Major
Economics
Primary Research Category
Social Sciences
The Impact of Chinese Investment on the Kenyan Economy
This paper considers the impact on the Kenyan economy of China’s $3.2 billion investment (as a part of their global Belt and Road Initiative) in a new railway in Kenya. This investment is the largest investment in infrastructure that Kenya has seen since it gained independence, as such this is a large investment in physical capital, a factor of economic growth. This paper applies to the impact of an external government’s (China’s) investment on the Kenyan economy. This investment was made in the summer of 2017, as such this paper will examine the Kenyan economy starting in 2017 and continue to predict future impacts on the Kenyan economy. The data used in this research has been sourced from the World Bank and TheGlobalEconomy.com. The Solow Growth model and Mankiw Romer Weil model will be used and their predictions for the Kenyan economy compared. These models will be used to study the effect of an increase in physical capital investment, sk, on the Kenyan economy.