Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
International Trade and Economic Growth Nexus. Empirical Evidence from Uganda.
Dr Emmanuel Erem, Kato S.B. Patrick, Kadhiri Rwambale, Robert Kisembo
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 2, No. 7 |
| Published | 31 July 2023 |
| ISSN | 3006-4384 |
Abstract
Exports, imports, and foreign direct investment were used as proxies in this study to examine the relationship between global trade and economic growth in Uganda from 1988 to 2018. Exports, imports, and foreign direct investment all strongly positively and significantly correlated with economic growth, according to empirical evidence. Unit root tests were performed using the Augmented Dickey Fuller test, and the results showed that all variables started out non-stationary but subsequently became constant. Due of the long-term correlations between the variables, cointegration was established using the Engle Granger Cointegration test. The variables' rate of adaptation to the long run within a one-year lag was 57%. Collectively, foreign investment, imports, and exports contribute for 77% of changes in the country's GDP. 23% of the variations in the growing size of the economy were caused by extra factors in the error term that were not included in the model. Because the F statistic was considered statistically significant, exports, imports, and foreign direct investment all have a significant impact on economic growth in the short run. For the sake of making policy suggestions, it is encouraged to use export marketing strategies to grow Uganda's exports and to give domestic businesses tax breaks to improve the way they perform. A welcoming investment atmosphere must also be provided for Uganda to attract foreign direct investment.
Keywords
exports
imports and foreign direct investment
Cite This Article
Dr Emmanuel Erem, Kato S.B. Patrick, Kadhiri Rwambale & Robert Kisembo (2023). International Trade and Economic Growth Nexus. Empirical Evidence from Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 2(7). https://journals.miu.ac.ug/pages/article.php?article_id=965
More in This Issue
View full issue →
56
The Effect of Plastic Waste on the Environment in Uganda, a Case Study of Jinja District
plastic waste and environment
57
The Effects of Memorial Sites on Growth and Development of Tourism in Uganda a Case Study of Namugongo Martyrs Shrines
memorial sites
growth
development and tourism
58
The Government Policies and Poverty Eradication Among Women in Uganda: A Case Study of Kawempe Division, Kampala
government policies and poverty eradication
59
The Impact of Climate Patterns on the Farming Activities in Uganda. A Case of Kibibi Town Council
climate patterns and farming activities
60
The Impact of Industrialisation on the Socio-Economic Development in Uganda: A Case Study of Katikamu Division Luwero District
industrialization
GDP and socio-economic development