ABSTRACT
The study is focused on Foreign Direct Investment and economic growth (measured by
GDP) in Uganda (2002-2011), the study employed time series survey data since it
examined data for a short time
Its objectives were; to establish the trend of Foreign Direct Investment in Uganda
(2002-2011, to establish the trend of Economic growth of Uganda ((2002-2011), and to
investigate the relationship between Foreign Direct Investment and Economic growth in
Uganda (2002-2011).
The hypothesis of the study was there is no significant relationship between Foreign
Direct Investment and Economic growth in Uganda. Time Series analysis such
Correlation analysis, regression analysis mechanisms were used.
The trend of Foreign Direct Investment and Economic growth showed a general
increase. lJsing the correlation, regression approach, there was a strong positive
correlation between Foreign Direct Investment and Economic growth(r=0.8202) there
was also significant relationship between Foreign Direct Investment and Economic
growth at 0.05 level of significant.
In conclusion therefore both Foreign Direct Investment and Economic growth has a
general increase, there is a positive relationship between Foreign Direct Investment and
growth in Uganda which agreed with Njimah et a~ (2009),Makii et a~ (2004) and
Borezstein (1999) study on Foreign Direct Investment and Economic growth this has
implied that Foreign Direct Investment play a very Important role in economic growth
of Uganda.
The trend in Foreign Direct Investment implies that as the interest rate reduces,
foreigners will be encouraged to set up industries and the reverse is true. The study
was guided by the cost of capital theory (Forgha 2009), since developing country like
Uganda cannot foster economic growth without Investment. Finally Uganda should embark much on the industrial set up since this employs a large number of people.
SYLVIA, N (2021). Foreign Direct Investment And Economic Growth In Uganda (2002-2011). Afribary. Retrieved from https://afribary.com/works/foreign-direct-investment-and-economic-growth-in-uganda-2002-2011
SYLVIA, NAKAGGWA "Foreign Direct Investment And Economic Growth In Uganda (2002-2011)" Afribary. Afribary, 04 Jun. 2021, https://afribary.com/works/foreign-direct-investment-and-economic-growth-in-uganda-2002-2011. Accessed 10 Oct. 2024.
SYLVIA, NAKAGGWA . "Foreign Direct Investment And Economic Growth In Uganda (2002-2011)". Afribary, Afribary, 04 Jun. 2021. Web. 10 Oct. 2024. < https://afribary.com/works/foreign-direct-investment-and-economic-growth-in-uganda-2002-2011 >.
SYLVIA, NAKAGGWA . "Foreign Direct Investment And Economic Growth In Uganda (2002-2011)" Afribary (2021). Accessed October 10, 2024. https://afribary.com/works/foreign-direct-investment-and-economic-growth-in-uganda-2002-2011