The effect of government expenditure in agricultural output in Uganda. a case study at Uganda coffee development authority (U C D A)
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Date
2019-08
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Kampala International University, College of Economics and Management.
Abstract
This study examined the effect of Government expenditure on coffee output and productivity in
Uganda over the period 2005-2015 with time series data collected from Uganda Coffee
Development Authority (UCDA), Uganda Bureau of Statistics (UBOS) and Bank of Uganda
(BOU). The present study applied ADF Ordinary Least Square (OLS) technique as an analytical
tool to analyze the data. The results of significance testing showed that there exists a long-run
relationship among Government expenditure on coffee output, agricultural output and economic
growth in Uganda. On the other hand, the empirical results of regression analysis revealed that
Government expdnditure has an insignificant effect on coffee output of Uganda. It was also
found out that the coffee sector is still confronting some challenges like; inadequate funding,
underdeveloped infrastructure, poor agriculture marketing. and shortage of irrigation etc. In
conclusion, variables such as the tax revenue, grants & donations, public debt and external
reserves account not for the variations in coffee output. due to lack of comprehensive time series
data, other variables that are likely to influence coffee production were not incorporated in the
models for statistical analysis.
Therefore the Government of Uganda should increase its expenditure in the development of the
coffee sector since it would enhance coffee productivity
Description
a research report submitted in partial fulfillment of the requirement of the award of a bachelor’s degree of science in statistics of Kampala international university.
Keywords
government expenditure, agricultural output, Uganda coffee development authority (U C D A)