Impact of Public Sector Investments on Economic Growth of Uganda (1985 - 2016)

ABSTRACT The study aimed at investigating the impact of public sector investment on economic growth of Uganda from 1985 to 2016. The specific objectives were to examine the effect of investment education in health investment and transport investment on economic growth the study was carried out using secondary data collected from 1985 to 2016. And was conducted based on expost facto research design focusing on time series data. Augmented Dickey- Fuller (ADF), tests result indicate that all the variables are not stationary at level when constant or trend is included in the ADF and PP tests. Since the series are not stationary at level, the variableswere 8 diffrence and once before they became integrated of order one I(1) when constant or constant and trend is included in the ADF and PP tests. The study utilized the Johansen co-integration analysis and the fully-modified Ordinary Least Square regression to ascertain the long-run effect of public sector investments and economic growth