Inflation and economic growth in Uganda (1995~2015)
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Date
2016-11
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Publisher
Kampala International University, College of Economics and Management
Abstract
This study set out to investigate the relationship between inflation rate and economic growth rate (% annual GDP) in Uganda (1995-2015), the study employed time series survey data since examined data for a short time ,its objectives were; to establish the trend of import in Tanzania (1995-2015), to establish the trend of GDP growth of Uganda (1995-2015), to investigate the relationship between Inflation rate and GDP growth rate in Uganda (1995-2015), the hypothesis of the study was there is no significant relationship between inflation rate and GDP growth rate in Uganda time series analysis such Correlation analysis, regression analysis mechanisms were used.
The trend of inflation rate has shown a general decrease over the period under study and GDP growth rate has shown a general increase for the period under study. Using the correlation, regression approach, there was a strong negative correlation between inflation rate and GDP growth(r=-0.805), there was a relationship between inflation rate and GDP growth at 0.05 level of significance, stationarity was tested and found that both inflation rate and GDP has trend by using ACF and PACF. There is relationship between Inflation Rate and growth Rate in Uganda which agreed with Khan (1992), Tobi (1994), Cooley (1990) study on inflation rate and GDP growth rate. The study has also supported the theory of aggregate demand stated by Keynes (1883-1946) which that there is a negative relationship between Inflation and Economic growth.
Description
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Award of a Bachelor’s Degree in Economics and Applied Statistics of Kampala International University
Keywords
Inflation, Economic growth, Uganda