Investment And Economic Growth in Uganda

ABSTRACT This paper set out to investigate the relationship between Investment and Economic growth in Uganda from 1980 to 2010. The study employed the expost facto research design since it basically examined secondary data; it was also a descriptive-correlation since it was interested in examining the relationship between the independent variables and the dependent variable. The Population of this study were the published reports on the variables of the study from 1980 to 2010. The study targeted annual reports by the Uganda Bureau of Statistics (UBOS), Bank of Uganda (BOU), Ministry of Finance Planning and Economic development and Uganda Investment Authority. The objectives of this study were; to examine the level of investment in Uganda, determine the level of economic growth in Uganda, and finally it was set to find the relationship between investment and economic growth in the following forms; Public investment and economic growth; Private investment and economic growth, FDI and economic growth from 1980 to 2010. The study found out that the level investment has been increasing since 1980 to 2010 with some seasonal variations. The study also found out that Uganda’s level of economic growth has continuously increased with a positive slope. It found out that Public investment does not have a significant effect on the growth of Uganda’s economy whereas results show that FDI and private investment have had a significant effect on the growth of Uganda’s economy. The above relationships between Public and FDI were compiled using linear regression models and the relationship between Private investment and economic growth was computed using a nonlinear exponential model.

TABLE OF CONTENTS

Chapter Page

One THE PROBLEM AND ITSSCOPE 1

Introduction/Background Information 1

Statement of the Problem 8

Purpose of the Study 9

Research Objectives 9

Research Questions 10

Hypotheses 10

Scope 10

Significance of the Study 12

Operational Definitions of Key Terms 13

Two LITERATURE REVIEW 14

Introduction 14

Review of Related Literature 14

Theoretical Perspectives 19

Three METHODOLOGY 31

Research Design 31

Research Population 32

Sample Size 33

Sampling Procedure 33

Research Instrument 33

Data Gathering Procedures 34

Data Analysis 34

Ethical Considerations 35

Limitations of the Study 36

Four PRESENTATION, ANALYSIS AND INTERPRETATION

OF RESULTS 37

Five FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 58

Findings 58

Conclusions 61

Recommendations 64

References 66

Appendices 70

Appendix I - Transmittal Letter 70

Appendix II - Clearance from Ethics Committee 71

Appendix III - Introductory Letter 73

Appendix III - Informed Consent 74

Appendix IV - Research Instrument 75

Researcher’s Curriculum Vitae 77

Data analysis results 78