Global Journal of Human Social Science, E: Economics, Volume 21 Issue 4

From the findings, the results showed that the coefficient of foreign exchange rate was positive and significant at 5 percent level of significance, 05.0 000 .0 < = p . This implied that for every increase in one percent of foreign exchange rate ( ), output production increased by 3.2744 percent in the maritime sector in Kenya. IV. C onclusion In achieving the objective of this study, which was to establish the effect of foreign exchange rate on maritime sector performance in enhancing economic growth in Kenya, Simple Linear regression and GMM models were utilized. Simple Regression and GMM Models indicated that coefficient of labor productivity was 3.5694 and 3.2744 respectively and were positive and significant at 5% level of significance, 05.0 000 .0 < = p . This implies that using simple regression every 1 percent increase in coefficient of foreign exchange rate, output increased by 3.5694%. Applying GMM, the results implies that every increase in 1% of foreign exchange rate, output production increased by 3.2744%. The study thus revealed that foreign exchange rate is a critical determinant in the performance of the maritime sector because foreign exchange rate had a direct bearing on the performance of the maritime sector. The results established that foreign exchange rate significantly and positively influenced maritime performance and thus a vital component in enhancing economic growth. The study concluded that foreign exchange rate has a very strong effect on performance of maritime sector in Kenya thus a critical driver of economic growth. R eferences R éférences R eferencias 1. Kenya Maritime Authority Newsletter (2019) 2. Marete, G. (2018, May 15). Unlocking maritime sector potential. Business Daily. Retrieved March 28, 2020 from https://www.businessdailyafrica.com/ corporate/shipping/Unlocking-maritime-sector-pote ntial/4003122-4563412-fbmued/index.html 3. OECD (2011). Competition in Ports and Port Services 2011. OECD, Paris. 4. PMAESA secretariat (2017). Consultative workshop on port congestion in the PMAESA Region Nyali Beach hotel, accessed on 25-26 September, 2008, Mombasa Kenya. 5. Song. D. and Panayide, P.M. (2015). Maritime Logistics A guide to contemporary shipping and port management. Kogan Page Limited. London EC1V 3RS, United Kingdom. 6. Solow R.M (1956). "A Note on Price Level and Interest Rate in a Growth Model," Review of Economic Studies, No. 54 (1953-54). 7. UNCTAD (2017). Review of maritime transport 2017 United Nations, New York, USA. 8. UNCTAD (2019). Review of maritime transport 2019. United Nations, New York, 9. World Bank, (2019). Transport Services: Reducing Barriers to Trade. Retrieved, March 25, 2020, from http://siteresources.worldbank.org/INTGEP/Resourc es/335315-1257200370513/04--Ch4--96-127.pdf Volume XXI Issue IV Version I 29 ( E ) Global Journal of Human Social Science - Year 2021 © 2021 Global Journals Effect of Foreign Exchange Rate on Maritime Sector Performance in Enhancing Economic Growth in Kenya