MJAMR

Determinants of Economic Growth in Uganda.

Abolian Deborah Melody, Dr Ariyo Gracious Kazaara, Dr Arinaitwe Julius, Kamugisha Nelson


Abstract

This study set out to provide evidence on the determinants of economic growth in Uganda while using gross fixed capital formation, general government final consumption expenditure and population growth as proxy variables. Time series data for the period of 1982-2020 obtained from the World Development Indicators (2020) was used. With the aid of unit root tests and a multiple linear regression model, the findings showed that population growth was stationary at level while economic growth, gross fixed capital formation and general government final consumption expenditure were non stationary at level hence differenced to achieve stationary. It was empirically confirmed that gross fixed capital formation had a positive and significant effect on economic growth, government final consumption expenditure had a positive and non-significant effect on economic growth while population growth had a negative but significant effect on economic growth. For purposes of policy recommendation, reduction of interest rates, improvement in technological developments should be done to encourage investments. Furthermore, in order to reduce the everincreasing population, government should provide affordable education in order to keep the girl child in school thus reducing early marriages and child births.

Keywords

population growth rate gross fixed capital information and government final
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Abolian Deborah Melody, Dr Ariyo Gracious Kazaara, Dr Arinaitwe Julius & Kamugisha Nelson (2023). Determinants of Economic Growth in Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 2(4). https://journals.miu.ac.ug/pages/article.php?article_id=830

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