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Title: Remittances and inflation in Uganda for the period between (2002_2014)
Authors: Abdirizak, Osman Mohamed
Keywords: Remittances
Issue Date: Aug-2016
Publisher: Kampala International University, College of Economics and Management
Abstract: This research report set out to investigate the relationship between remittance and inflation Uganda (2002-2014). Its objectives were; to establish the trend of remittance in Uganda (2002-2014), to establish the trend inflation in Uganda (2004-2014), to investigate the relationship between Remittance and inflation Workers’ remittance inflows have been rising significantly over the past decade for Uganda. They have become one of the most stable sources of foreign exchange earnings and emerged as a crucial issue for monetary and fiscal policy, hence understanding the impact of Remittances on the macroeconomic variables such as inflation is essential for the policy makers of the recipient economy. Remittance is an important demand side variable of inflation and is expected to affect inflation from the perspectives of exchange rates, money supply and balance of payments. Workers’ remittance inflows have a spending effect in the recipient economies. At the micro level remittances directly lead to an increase in household income which in turn raises their demand for goods and services. This excess demand brings inflationary pressure to the economy and triggers non tradable price level. In the study there is a positive correlation between remittance and inflation as can be seen from revalue correlation coefficient since it is a positive value (0J74) The coefficient of determination (R2) shows that remittance can explain 65% of the variation in inflation in Uganda which also emphasize that there is a strong positive correlation between the two variables.
Description: A Research Report Submitted to the College of Economics and Management in Partial Fulfillment for the Requirements of the Award of Bachelor Degree in Arts in Economics of Kampala International University
Appears in Collections:Bachelors Degree in Economics

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