Household income and expenditure in Uganda (1993-2015)
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Date
2017-07
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
The main purpose of this study was to ascertain the relationship between Household Income and Expenditure in Uganda. The specific objectives of this sturdy were to establish the Household Income Trend, establish the Household Expenditure Pattern. The study made use of time series data from statistical abstracts - Uganda Bureau of Statistics (1993-2015).
In line with Expenditure, figure 2 revealed that Household Expenditure on Food, Drinks, Rent, Fuel and energy was the highest among other Household Expenditure Patterns with about
5 1.8196% of the Household per capita Expenditure on Food, Drinks, Rent, Fuel and energy. This was closely followed by Household Expenditure on clothing and footwear by 6.37826 %. Apart from these two Expenditure Patterns that showed a major Expenditure for the Households, other Expenditure Patterns were averagely within 5 %.
In line with Household Income, figure 3 revealed that over a number of years there have been variations in income among Households in Uganda. On aggregate income was highest among other households with about 11.523% in 1995. This was closely followed by income in 2006 by 11 .49%. Apart from these two income levels that showed high income for the Households, other
Household Income levels were averagely low.
In line with the relationship between Household Income and Expenditure, the results provided evidence that Household Income induces Household Expenditure positively and significantly by 65.8% in Uganda. The results of the study also revealed that there was causality flowing from
Income to Expenditure and no causality flowing from Expenditure to income. Basing on the findings of the study its recommended that government should encourage Households to save part of their income earned in order to cater for the unforeseen circumstances which may lower down their standards of living.
Description
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirement for the Award of a Bachelors Degree of Science in Statistics of Kampala International University
Keywords
Household income, Expenditure, Uganda