Kenya’s Development Path and Factor Prices 1964-2000
Abstract
This study analyses how changes in factor abundance and trade policy have affected factor prices in Kenya since 1964. First there was a period of capital deepening, but this was reversed from 1982. As a result, there has been a shift of production towards the labour-intensive informal sector. The econometric analysis shows that in the long run factor proportions determined relative factor returns; for instance, an increase in the capital-labour ratio raised the wage-capital rental ratio. We did not find any significant impact of changes in goods prices, due to among other things changes in trade policy, on factor returns.Download Info
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 142.Length: 41 pages
Date of creation: 16 Aug 2004
Date of revision:
Handle: RePEc:hhs:gunwpe:0142
Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Factor abundance; trade policy; globalisation; factor prices; Kenya;Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-09-05 (All new papers)
- NEP-DEV-2004-09-05 (Development)
- NEP-HIS-2004-09-05 (Business, Economic & Financial History)
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