Effects of Political Process on the Economic Performance of a Country: A Case of Kenya General Elections

Abstract

This research paper addresses the effects of political processes on the economic performance in Kenya. The research forms a framework for understanding the policy and individual decisions that investors and leaders have to consider when making sound investment decisions. These have been based on the identification of concrete financial and economic issues from the results of comprehensive and in depth research carried out through secondary research, and also study of related finance and banking journals.

Purpose: The core intent of this research was to understand how key economic variables such as the stock market performance, foreign direct investment, interest rates and inflation rates are affected by political processes.

Methodology: The paper employed a secondary research design. The sample size of this research was estimated at 12 years. The data was analyzed using standard software. The variables were measured using correlation analysis.

Findings: A major finding of the research showed that election trends have a strong impact on the performance and stability of an economy.

Conclusion: This study is focused on the effects of political processes on the economic performance of a country with a case of a Kenyan scenario. Taken as a whole, our findings suggest that, there are some strong impacts associated with processes on the economic variables.

Keywords: Political Business cycle, Political electioneering, Economic barometers