Estimates of sectoral capital/output ratios for Kenya
Abstract
Estimates of capital/output ratios for fourteen sectors of the
Kenyan economy are reported. For each sector, five alternative estimates
were calculated, each contingent on a different assumption about the rate
of depreciation. Although the resulting estimates of capital/output ratios
differ widely, it is shown that projections of gross investment requirements
are quite insensitive to the choice of assumption. Related estimates
of rates of profit on capital, and of the capital costs of providing jobs,
are also discussed.