Master of Economic Policy and Planning - Main Campus
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Browsing Master of Economic Policy and Planning - Main Campus by Subject "Economic Growth"
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- ItemEconomic Growth and Unemployment in Uganda (1991 — 2014)(Kampala International University, College of Economics and Management., 2016-04) Ahmed, Mohamed ElmiThis post-graduate thesis presents a regression analysis of the accumulated empirical evidence on the relationship between economic growth and unemployment in Uganda. Okun’s law emphasis the relationship between economic growth and unemployment stating that there is inverse relationship among economic growth and unemployment. Even so, sometimes both variables move towards same direction meaning an increase of economic growth leads to a rise of unemployment. The researcher employed correlation design with line regression analysis using Statistical Package for Social Science (SPSS) to analyse the empirical impacts of economic growth on unemployment in Uganda. The data of these both variables were confidential and were taken from the Ugandan Bureau Of Statistics and World Bank as this thesis concerned in Uganda. The result of findings showed that there is weak negative correlation between economic growth and unemployment in Uganda from 1991 to 2014. The analysis displayed that 1% increase of economic growth reduces 2.3% of the unemployment in Uganda which is acceptable according the Okun’s law, saying “ to reduce unemployment in 1% point during a year, the economic growth must grow nearly 2% points faster than the rate of growth of potential economic growth over that period. The regression analysis further showed that the null hypotheses was rejected as critical value of F (0.159) is greater than 0.05 of significant level. The researcher recommended according to the findings that Uganda should not emphasize the economic growth more to reduce the unemployment in the country but the other variables (investment, inflation, government policies etc) that affect the unemployment after when research being done.
- ItemForeign direct investment and economic growth in Uganda (1990-2016)(Kampala International University, 2016-12) William Wol, Wieu WolThis study examined the impact of the Foreign Direct Investment (FDl) on economic growth in Uganda using time series data from 1990-2016.The specific objectives of the study were: to examine the effect of FDI on Agricultural sector growth, Manufacturing sector growth, Industrial sector growth and Service sector growth in Uganda using Seemingly Unrelated Regression analysis (SUR). This method of analysis allows modeling of the sector growth rates on same set of FDI, Human capital, labour force trade openness and financial sector development. The study tested for stationary variables using augmented dickey fuller tests and corrected for stationary by differencing using one period. The results showed that there is a significantly negative effect of FDI on economic growth in Uganda. Trade openness and Human capital are some of the channels through which FDI inflows impacts on Uganda’s economic growth. Trade openness and financial sector development impact on economic growth positively. It was observed that FDI has a positively significant effect on Industrial sector growth implying that FDI inflow into the economy increases the growth rate of the industrial sector but it does not have a significant effect on Agricultural sector growth, manufacturing sector growth, and service sector growth. Other variables like domestic capital, labour force trade openness do not impact on the growth of agricultural sector, trade openness and inflation impacts positively on the growth of the manufacturing sector. In addition only financial sector development was observed to positively impact on the service sector growth, all other factors were insignificant. FDI channeled through trade openness, labour force and financial sector development impacts negatively on the economy. Therefore Uganda should encourage and attract FDI directed to the Industrial sector FDI channeled through human capital and improve on the domestic investments to enable the sector drive the economy. Uganda should focus on transfer of skill, knowledge from the FDI inflows to boost domestic investments, value addition and growth.
- ItemInflation and economic growth in Uganda from 1976 to 2016(Kampala International University , College Of Economics And Management, 2018-09) Farah, Abdikani OmarThe existence and nature of a link between inflation and Economic growth has been the subject of considerable interest and debate. High and sustainable Economic growth and low inflation are two of the main objectives of macroeconomic policy. Hence, if high inflation is harmful for an economy and low inflation is beneficial, then it is reasonable to ask, what is the optimal level of inflation for an economy? In general, is there any link between inflation and Economic growth? In this thesis, we estimate the relationship between inflation and Economic growth by studying their co-integrated relationship using the error correction model. After estimating this link, we turn to estimate the threshold level of inflation. The results indicate that there exist a positive long-run relationship between inflation and Economic growth in Uganda.
- ItemInterest rate, private sector investments, exchange rate and economic growth in Uganda (1984-2015)(Kampala International University , College Of Economics And Management, 2017-08) Ali, Abdirizak IbrahimThe overall objective of the study was to investigate the relationship between exchange rate and economic growth of Uganda (1984 -2015). The objectives included to determine the relationship between interest rate and economic growth of Uganda, to establish the relationship between private sector investments and economic growth of Uganda and to establish if there is a significant relationship between exchange rate and economic growth in Uganda in the years (1984-2015). The study was conducted based on the correlation design and the use of quantitative techniques to analyze secondary data scientifically to critically conclude the research objectives, secondary data was collected from World Bank reports, international monetary fund data sheets among others. The data was attained for the period of time of 1984-2015. The study on the first objective reveal that interest rates had a low percentage change in the dependent variable (i.e economic growth rate) is caused by interest rates. The second objective reveal the regression coefficient reveal that Private sector investments had a low change in the dependent variable (i.e economic growth rate). The exchange rate had a significant effect on the economic growth of Uganda. The study conclude that interest rate changes have had a positive change in economic growth of Uganda implying that the interest rates improvements will enhance the growth of the economy. The second research objective reveal that Private sector investments in Uganda had some effect on the economic growth of Uganda, meaning that because Private sector is the engine for the country economic growth, the effect on growth was high, therefore the study conclude that private sector investments need improvements. On the third research objective, the study concludes that exchange rate had an effect on the economic growth of Uganda. The study findings therefore imply that there is need to strengthen the exchange rate to attain economic growth in the country. The study recommends the policy makers ought to adopt strategic and systematic ways of controlling and adjusting the interest rate since their impact on the overall level of economic growth can easily be felt. However, these should be adjusted with an informed perspective since they can crowd out domestic growth. The researcher recommend for the establishment of a strong finance mechanism that will improve the state of functional of interest rates through establishing a strong policy framework that can guide the execution of the duties of financial system controls in Uganda. There recommend that fiscal and monetary strategies for stimulating private investment like offering tax holidays to prospective investors would be a better option for encouraging private sector investments in the country. Exchange rate seem to be significant to economic growth of Uganda and the need for creation of a strong export base that can generate more foreign exchange to attain the economic growth of the country.