Impact of factors of production on private investment in Kitui county, Kenya

Abstract

Private investment is a powerful tool for maintaining and expanding an economy. Many developed and developing countries have for several decades relied greatly on private investment to solve their economic problems related to growth and development. This research focused on establishing the impact of factors of production on private investment in Kitui County. The Tobin Q theory, acceleration theory and neoclassical theory are just but a few theories that illustrate the different factors that influence private investment. This report has six chapters; the introduction chapter that basically gives the background of the study in a broader perspective, the second chapter gives a clear theoretical and empirical review of the topic including the conceptual frame work, the third chapter gives details of the research methodology, the fourth chapter presents the results, the fifth chapter is basically the discussion of the results while the sixth chapter entails the conclusion and recommendation. The target population of the study was the 2000 people who attended the first Kitui County Investors Conference Forum in 2015.Out of the target population, questionnaires were administered to a sample of 200 respondents which was 10% of the target population. Collected data was analyzed mathematically by use of inferential statistics and multiple regression through the assistance of SPSS Version 20 (statistical package for social scientists). The study found out that access to land, availability of labor, access to capital and availability of entrepreneurship had a positive correlation with private investment. Therefore, the study recommends the enhancement of the four factors of production since they all contribute immensely on private investment.