The contribution of labour force on economic growth rate in Uganda (1997 -2012)
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Date
2014-06
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
Contribution of Labour Force Economic growth rate in Uganda (1996-2011). Its objectives were; to establish the trend of Labor Force Participation Rate in Uganda (1996-2011), to establish the trend of GDP growth rate in Uganda (1996-2011), to investigate the relationship between Labor Force Participation Rate and GDP growth rate in Uganda (1996-2011). The hypothesis of the study was, Ho: there is no relationship between Labor Force
Participation Rate and GDP growth rate in Uganda. Analysis such as correlation and regression analysis mechanism was used to establish relationship and stationary was tested using Auto correlation and Partial auto correlation Function. The trend of Labor Force Participation Rate showed a general increase mean while GDP
growth rate had a cyclical fluctuation for the period under studied (1996-20 11) in Uganda. Using the correlation, regression approach, there was a weak negative correlation between Labor Force Participation Rate and GDP growth rate(r = -0.256) and the strength of relationship (R2 = 0.0655), there was no relationship between Labor Force Participation Rate and GDP growth rate at 0.05 level of significance,) stationary was tested and found that both Labor Force Participation Rate and GDP has trend by using ACF and PACF. In conclusion therefore Labor Force Participation Rate has a general increase and GDP growth rate has shown a cyclical fluctuation; there is no relationship between Labor Force Participation Rate and Economic growth in Uganda as compared to other studies which showed positive and negative relationship and the both variables were found to be having trend. I would recommend the government to embark on birth rate control through family planning methods to slow down the level of population growth.
Description
A research report submitted to the college of economics and management science in partial fulfillment of the
requirement for the award of bachelor’s Degree of Economics and Applied Statistics of Kampala International
University
Keywords
labour force, economic growth rate, Uganda (1997 -2012)