Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
International Trade and Economic Growth Nexus in Uganda. Empirical Evidence from Kampala District.
Turyahikayo Innocent
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 2, No. 9 |
| Published | 30 September 2023 |
| ISSN | 3006-4384 |
Abstract
This study set out to provide evidence for the international trade economic growth nexus in Uganda while using exports, imports and foreign direct investment as proxy variables for the period 1988-2018. It was empirically confirmed that exports imports and foreign direct investment had a strong positive significant relationship with economic growth. Unit root tests were carried out using Augmented Dickey Fuller test and findings showed that all variables were nonstationary at level but were differenced to achieve stationarity. Cointegration was established using Engle Granger Cointegration test citing existence of a long run relationship amongst the variables. The speed of adjustment of the variables to long run was 57 percent within a one-year lag period.77percent of the variations in economic growth were jointly explained by exports, imports and foreign direct investment.23 percent of the variations in economic growth were explained by other variables contained in the error term thus not included in the model. The F statistic was statistically significant hence exports, imports and foreign direct investment have a significant effect on economic growth in the short run. For purposes of policy recommendation, export promotion strategy to boost Uganda's exports is encouraged and provision of tax incentives to domestic firms to boost their productivity. Furthermore, a good investment climate ought to be provided to attract foreign direct investment inflows in Uganda.
Keywords
foreign direct investment
imports and exports
Cite This Article
Turyahikayo Innocent (2023). International Trade and Economic Growth Nexus in Uganda. Empirical Evidence from Kampala District. Metropolitan Journal of Academic Multidisciplinary Research, 2(9). https://journals.miu.ac.ug/pages/article.php?article_id=1563
More in This Issue
View full issue →
46
The Effect of Taxation Policy on the Performance of Small Business Enterprises. A Case of Nakawa Division Central Market
taxation policy
performance and small business enterprises
47
The Effect of Unemployment on Economic Growth of Communities in Uganda. A Case of Kiryandongo Town Council
unemployment
economic growth and communities
48
The Impact of Commercialisation of Fishing on Gender Roles, Among Lake Victoria Shore Fishing Communities of Uganda. A Case Study of Katosi Fishing Village
commercialisation
fishing
gender roles
lake-Victoria shore fishing and communities
49
The Impact of Different Types of Education Services Provided by Current Education Actors and Humanitarian Education Agencies to the Refugees Settling in West Nile Region from 2010-2023
Education in emergencies
disability
gender equality
integrated education in emergencies
50
The Impact of Employee Training and Customer Satisfaction in Uganda. A Case Study of Hotel Africana
employee training and customer satisfaction