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High Population Growth

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focus on labor, capital accumulation, liquid liabilities and exports as some of the main determinants of economic growth in Kenya as a developing Country.
2.3.1 Labor
A high population growth is a growing concern throughout the world and a challenge to Countries’ economies. Economists are torn between three theories; one that state’s that population growth helps a Nation’s economy by stimulating economic growth and development and another that bases its theory on Robert Malthus’ findings. Malthus (1798) stated that population increase is detrimental to a nation’s economy due to a variety of problems caused by the growth. For instance, overpopulation and population growth place a tremendous amount of pressure on resources, which result in a …show more content…

Capital stock can be measured as the monetary value of investments, the amount of income that is reinvested, or as the change in the value of assets owned (the increase in the value of the capital stock). In general, the public 's choice as to the division of income between consumption and net investment is the fundamental factor determining how fast income will accelerate within a given period of time. When we have the aggregate consumption lower than the aggregate income and net investment is, therefore, positive, the capital stock and income will grow through time. Further when the aggregate consumption is greater than the aggregate income, the income generated and the capital stock will decrease over time. There has been some substantial growth in output and income over the past 150 years and this has been witnessed in some if not most of the industrial Countries and this could not have been the case if there was no growth in the capital stock during that time and the growth in the capital stock could not have occurred unless consumption was consistently lower …show more content…

They consist of the value of royalties, merchandise, freight and transportation, insurance, travelling, license fees, and other services like communication, construction, business, personal, government services and financials. However, the exports do not include transfer payments and the compensation of employees and investment income. The Economic Recovery Strategy (ERS) 2003-2007 identifies trade and more so the expansion of export as one of the ways that will help in the economic growth and recovery. For this reason, the National Export Strategy (NES) 2003-2007 aimed at stimulating and expanding export trade, was approved by the Cabinet in 2004. The NES identifies trade facilitation as one of the cross-cutting issues that require attention to stimulate the growth of exports. It emphasizes the need to ensure that government regulations and processes on the movement of goods are efficient, particularly at the borders, so that the business community can carry out trade transactions at the least cost and time. International trade plays a key role in Kenya’s economic and social development. Kenya is renowned for the exportation of quality products which include vegetables, meat products, leather, coffee, tea, cut flowers and nuts vegetables hence it is very important that these products gain access to the world markets as they are branded as Kenyan

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