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An asssessment of the contribution of export processing zones to the Kenyan economy

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dc.contributor.author Zimam, Amanuel
dc.date.accessioned 2020-02-21T13:58:56Z
dc.date.available 2020-02-21T13:58:56Z
dc.date.issued 2008
dc.identifier.uri http://erepo.usiu.ac.ke/11732/5389
dc.description A Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Degree of Master of Science in International Business Administration en_US
dc.description.abstract The purpose of this study was to assess the contribution of the EPZ firms to the Kenyan economy. Specifically, the research sought to determine: 1. What is the significance of EPZs with respect to economic development in Kenya? 2. How did the regime change at the end of 2002 affect the performance of EPZs in Kenya? 3. What strategic decisions must the government make with respect to EPZs? This study employed a descriptive research design. The total population was seventy. Due to the size of the population a census method was used to collect data rather than a sample. Hence, the sample size constituted all the elements of the population. An attitudinal perception self-administered mail-questionnaire was sent to the respondents through e-mail. In situations where the e-mail was not the best method and respondents delayed, the researcher dropped and picked questionnaires. The respondents in this research were the marketing managers and public relations managers or their designated representatives. The research used descriptive statistics method specifically frequency distribution tables and simple charts for data analysis. Excel and SPSS were used to generate the frequency distribution tables and charts from the raw data. The findings showed that the contribution of EPZs to the Kenyan economy was limited. There was evidence of increase in FDI due to AGOA but not due to efficiency or low costs of production in EPZ firms. Therefore, end of AGOA is expected to result in the closure of some firms that initially set business to take advantage of the AGOA Act and will significantly undermine FDI inflow. The post-election violence also significantly hampered the firms' functions. Most respondents believed that their firms would have either closed business in Kenya or relocated activities to other countries. Hence, stability of political environment is essential to EPZ firms' performance. This study found that the nature of tasks in EPZ firms do not require sophisticated skills and the tasks are generally repetitious. This limits significant technology transfer. Lack of investment in advanced equipment also enabled firms to exit the market easily. Therefore, EPZ contribution to the growth of the Kenyan economy was limited. Export processing zones made considerable contribution in employment creation but were less successful in technology transfer and linkages. The increase in FDI was also linked directly to the AGOA enactment. The strategies that the government used in relation to EPZs did not vary significantly from the approaches taken by other countries. We recommend that necessary steps be taken and incentives provided to diversify EPZ investment away from AGOA related manufacturing. The government should also encourage capacity building in EPZ firms. The firms could be provided with incentives to invest in heavy equipment and value adding activities. This would also act as an exit barrier because of the substantial investment and make EPZ firms' products competitive because of the value added component. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Contribution of export processing zones en_US
dc.title An asssessment of the contribution of export processing zones to the Kenyan economy en_US
dc.type Thesis en_US


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