Tax Revenue and Economic Growth in Uganda from 2002 To 2011:
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Date
2014-02
Authors
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The purpose of the study was to establish relationship between tax
revenue and economic growth in Uganda from 2002 to 2011. The specific
objectives of the study were to determine the level of tax revenue in
Uganda, find out the level of economic growth in Uganda and the last
was to establish the relationship between tax revenue and economic
growth in Uganda from 2002 to 2011. The study found out that the level
of tax revenue in Uganda has been increasing over time since the
coefficient on tax revenue was positive with Beta =10.23933, this
significant increase is attributed to the several government policies that
have made it possible to attract all forms of tax collections in Uganda.
The results however indicated that the level of economic growth has been
decreasing over time since the gradient of the linear regression model
was negative with Beta = -0.099697, thus; the relationship was found to
be insignificant. Based on the results, tax revenue was negatively
correlated with real GDP growth rate (r = -0.0246) and the null
hypothesis was accepted leading to a conclusion that there is no
significant relationship between tax revenue and economic growth. The
same results are supported by the linear regression results which also
indicate that tax revenue has no significant relationship with economic
growth. (F = 0.00 < than F critical 0.05, 1, 8 = 5.32 and P value = 0.946> sig =
0.05). We accept the null hypothesis at 95 percent level of confidence
that there is no relationship between tax revenue and economic growth.
The study recommends future research on the role of tax revenue in
attracting investment in Uganda, and on the impact of Uganda Revenue
Authority towards economic development.
Description
a research dissertation presented to the college of economics and management science in partial fulfillment of the requirement for the award of bachelor’s degree in economics and applied statistics of Kampala international university.
Keywords
Tax Revenue, Economic, Growth