Journal of Economics, Management and Trade <p><strong>Journal of Economics, Management and Trade (ISSN:&nbsp;2456-9216)</strong> publishes manuscripts with valuable insight to research, ideas and strategies of economics, management and trade. The journal also encourages the submission of useful reports of negative results. This is a quality controlled, OPEN peer reviewed, open access INTERNATIONAL journal. This journal aims to publish high quality papers (<a href="/index.php/JEMT/general-guideline-for-authors">Click here for Types of paper</a>) in all below mentioned areas.</p> Journal of Economics, Management and Trade en-US Journal of Economics, Management and Trade 2456-9216 Effect of Tax and Debt Financed Government Expenditure on Economic Growth in Kenya <p>This study aims at analyzing the effect of tax and debt-financed government expenditure on economic growth in Kenya using time series data from 1980-2014. Vector Error Correction Model (VECM) was used to analyze the data. The empirical findings showed that public investment expenditure financed by issuing debt has positive effect on economic growth. The results also indicated that financing government consumption expenditure using debt has negative effect on economic growth. With regards to tax revenue, the results indicated that tax financed public consumption spending affects economic growth negatively. Moreover, the results showed financing government investment expenditure using tax revenue promotes economic growth. Based on the findings, this study therefore recommends fiscal authorities in to use borrowing to finance investment expenditure as opposed financing consumption spending. Additionally, given the adverse effects of debt-accumulation on growth performance, policy makers should focus more on domestic revenue mobilization to finance government expenditures.</p> Gideon Mukui Joseph Onjala Japheth Awiti ##submission.copyrightStatement## 2020-02-20 2020-02-20 1 13 10.9734/jemt/2020/v26i130215 Services Sector FDI-Growth Nexus in Nigeria: Does Liberalization Policy Matters? <p>Since it is the need of developing countries to step up own industrialization process and growth and calls for more technology spill-over through foreign investments. This made it a necessity that efforts are made by these countries to attract foreign direct investment (FDI) because of its acknowledged advantages as a tool of economic development. Nigeria, in particular, joined the rest of the world in the quest for increased FDI inflows arising from the notion that FDI leads to economic benefits within the host country. This study analyzed the role of liberalization policy on the nexus between services sector FDI and economic growth in Nigeria under scenarios with and without a structural break for the period 1981-2018. Time-series properties were examined using both conventional and unit root tests with structural breaks to account for shift dummy in the series. Their results indicate that the series is stationary at I(1) and this prompt the use of vector error correction model (VECM). The statistical results show the existence of the long-run relationship between services FDI and economic growth though services FDI spurs growth when policy shift is not included but retards growth when it is included. In the short-run, the estimate under a scenario without break reveals significant positive relationship with growth but negative and statistically insignificant under the scenario with the break. The overall analyses show that services FDI could only play a significant role in Nigeria's growth when there is no change in government policy or intervention. Based on these findings, the policy implications include the expansion of more service-oriented firms to increase sectoral share in the total GDP. The potential benefits from such expansion include creation of jobs, more inclusive growth and development, and the higher plant survival tends to increase social prosperity.</p> Bashir Adelowo Wahab ##submission.copyrightStatement## 2020-02-20 2020-02-20 14 31 10.9734/jemt/2020/v26i130216