The Contribution Of Labour Force On Economic Growth Rate In Uganda (1997 -2012)

ABSTRACT

Contribution of Labour Force Economic growth rate in Uganda (1996-2011).

Its objectives were; to establish the trend of Labor Force Participation Rate in Uganda

(1996-2011), to establish the trend of GDP growth rate in Uganda (1996-2011), to

investigate the relationship between Labor Force Participation Rate and GDP growth rate in

Uganda (1996-2011).

The hypothesis of the study was, Ho: there is no relationship between Labor Force

Participation Rate and GDP growth rate in Uganda.

Analysis such as correlation and regression analysis mechanism was used to establish

relationship and stationarity was tested using Autocorrelation and Partial autocorrelation

Function.

The trend of Labor Force Participation Rate showed a general increase mean while GDP

growth rate had a cyclical fluctuation for the period under studied (1996-20 11) in Uganda.

Using the correlation, regression approach, there was a weak negative correlation between

Labor Force Participation Rate and GDP growth rate(r = -0.256) and the strength of

relationship (R2 = 0.0655), there was no relationship between Labor Force Participation Rate

and GDP growth rate at 0.05 level of significance,) stationary was tested and found that both

Labor Force Participation Rate and GDP has trend by using ACF and PACF.

In conclusion therefore Labor Force Participation Rate has a general increase and GDP

growth rate has shown a cyclical fluctuation; there is no relationship between Labor Force

Participation Rate and Economic growth in Uganda as compared to other studies which

showed positive and negative relationship and the both variables were found to be having

trend. I would recommend the government to embark on birth rate control through family planning methods to slow down the level of population growth.