EFFECT OF TRADE OPENNESS ON ECONOMIC GROWTH IN KENYA

Abstract: Kenya has enacted a number of comprehensive trade policies with the goal of improving the nation's overall economic performance. Despite these efforts and other underlying initiatives focused on increasing trade levels of Kenya via Structural Adjustments Programs (SAPs) and Vision 2030, the levels of trade openness have been characterized by a fluctuating trend. The paper seeks to establish the effect on trade openness on economic growth in Kenya. The theoretical framework on the study will be based on Theory of comparative advantage and export-led-growth theory. Ex-post facto research approach was utilized in the paper. Time series methodology will be applied, co-integration tests and diagnostic tests such as stationarity, normality, heteroskedasticity, and autocorrelation tests will be conducted. Various control variables including inflation, interest rate, and exchange rate will be included to guarantee that a sound statistical model is established. Hypothesis testing will be guided by the threshold of 0.05 significance level. The Autoregressive distributed lag (ARDL) models regression results revealed that in the long run the effect of trade openness on economic growth was positive but insignificant, while in the short run it was positive and significant. In conclusion, while economic growth is enhanced by trade liberalisation in the short run, its long-run effect is yet to be fully realised. The study recommended that the relevant government authorities should enhance export diversification and value addition policies, manufacturing policies and trade infrastructure. Keywords: Economic Growth, Exports, Imports and Trade Openness. Title: EFFECT OF TRADE OPENNESS ON ECONOMIC GROWTH IN KENYA Author: Samuel Omboke Nyabute, Peris Njeri Kiarie, Lucy Wamugo Mwangi International Journal of Management and Commerce Innovations  ISSN 2348-7585 (Online) Vol. 14, Issue 1, April 2026 - September 2026 Page No: 724-733 Research Publish Journals Website: www.researchpublish.com Published Date: 05-August-2026 DOI: doi.org Paper Download Link (Source) researchpublish.com