This research report set out to investigate the relationship between remittance and
inflation Uganda (2002-2014). Its objectives were; to establish the trend of
remittance in Uganda (2002-2014), to establish the trend inflation in Uganda
(2004-2014), to investigate the relationship between Remittance and inflation
Workers’ remittance inflows have been rising significantly over the past decade for
Uganda. They have become one of the most stable sources of foreign exchange
earnings and emerged as a crucial issue for monetary and fiscal policy, hence
understanding the impact of Remittances on the macroeconomic variables such as
inflation is essential for the policy makers of the recipient economy.
Remittance is an important demand side variable of inflation and is expected to
affect inflation from the perspectives of exchange rates, money supply and balance
Workers’ remittance inflows have a spending effect in the recipient economies. At
the micro level remittances directly lead to an increase in household income which
in turn raises their demand for goods and services. This excess demand brings
inflationary pressure to the economy and triggers nontradable price level. In the
study there is a positive correlation betweenremittance and inflation as can be
seen from r_value correlation coefficient since it is a positive value (0J74)
The coefficient of determination (R2) shows that remittance can explain 65% of
the variation in inflation in Uganda which also emphasize that there is a strong
positive correlation between the two variables.
MOHAMED, A (2021). Remittances And Inflation In Uganda For The Period Between (2002_20 14). Afribary. Retrieved from https://afribary.com/works/remittances-and-inflation-in-uganda-for-the-period-between-2002-20-14
MOHAMED, ABDIRIZAK "Remittances And Inflation In Uganda For The Period Between (2002_20 14)" Afribary. Afribary, 10 Jun. 2021, https://afribary.com/works/remittances-and-inflation-in-uganda-for-the-period-between-2002-20-14. Accessed 25 Jul. 2021.
MOHAMED, ABDIRIZAK . "Remittances And Inflation In Uganda For The Period Between (2002_20 14)". Afribary, Afribary, 10 Jun. 2021. Web. 25 Jul. 2021. < https://afribary.com/works/remittances-and-inflation-in-uganda-for-the-period-between-2002-20-14 >.
MOHAMED, ABDIRIZAK . "Remittances And Inflation In Uganda For The Period Between (2002_20 14)" Afribary (2021). Accessed July 25, 2021. https://afribary.com/works/remittances-and-inflation-in-uganda-for-the-period-between-2002-20-14