The Moderating Effect Of Inflation On The Relationship Between Foreign Direct Investment, Financial Market Development And Economic Growth In Kenya

ABSTRACT A great deal of literature from a number of studies established that stable financial system offers risk diversification and efficient capital allocation that leads to economic growth of a country and also the economic expansions caused by harnessing FDI as a source of external financing equally leads to economic growth. However, finance literature records that moderate and low rate of inflation positively affects growth of the economy but high and accelerating rate of inflation jeopardize growth within the economy. This study therefore seeks to determine the moderation effect of inf…