Infrastructure investment and economic growth in Uganda (1985-2016)
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Date
2018-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The study aimed at investigating the effect of infrastructure investment on economic growth of Uganda from 1985 to 2016. The specific objectives were to examine the effect of health infrastructure investment on economic growth. To examine the effect of road infrastructure investment on economic growth and to establish the effect of educational infrastructure investment on economic growth. The study was carried out using secondary data collected from 1985 to 2016. And was conducted based on expost facto research design focusing on longitudinal design. Augmented Dickey- Fuller (ADF), tests The result indicate that the all the variables are not stationary at level when constant or trend Is Included in the ADF and PP tests. Since the series are not stationary at level, the variables were difference once before they became integrated of order one 1(1) when constant or constant and trend is included in the ADF and PP tests. The study utilized the Johansen co- integration analysis and the fully-modified Ordinary Least Square regression to aScertain the long-run effect & infrastructural investments on economic growth. The findings of the study reveal that health, road and education
expenditures had a significant effect on economic growth of Uganda. This implies that a unit increase in ir!frastructural investments in health road and education would increase economic growth. The study therefore recommend that government need to refocus on investing more on the road networks in order to increase its productivity and makes it user friendly to generate economic growth and improve development in the country.
Furthermore, government should also increase investments in health and education infrastructure in order to sustain and consolidate on the impact these investments’ had on economic growth. There is also the need to streamline the policy on education to make it more practical and skill oriented so as to encourage job creators for economic development
Description
A research dissertation submitted to the college of higher degrees and research in partial fulfillment of the requirements for the award of the Master Degree of Arts in Economics of Kampala International University
Keywords
Infrastructure, Investment, Economic growth, Uganda