THE EFFECTS OF INFLATION ON THE PRODUCTIVITY OF WHOLESALE TRADERS IN LIRA MUNICIPALITY

TABLE OF CONTENTS

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENTS iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF FIGURES ix

LIST OF ABBREVIATIONS x

ABSTRACT

CHAPTER ONE 1

1.1 Background to the study 1

1.2 Statement of the problem 5

1.3 Purpose of the study 7

1.4 Objectives of the study 7

1.5 Research Question 7

1.6 Significance of the study 7

1.7 Scope of the study 8

1.8 Limitation of the study 8

1.9 Conceptual frame work showing the relationship between inflation and wholesale productivity in Lira Municipality 9

CHAPTER TWO 10

LITERATURE REVIEW 10

2.0 Introduction 10

2.1 Theoretical review 10

2.2 Actual review of related literature 12

2.2.1 Price of commodities and productivity 17

2.2.2 Scarcity ofresources and productivity 17

2.2.3 Devaluation and productivity 18

2.2.4 Competition and productivity 18

CHAPTER THREE .19

METHODOLOGY 19

3.0 Introduction 19

3.1 Research design 19

3.2 Sampling population 19

3.3 Sampling methods 19

3.4 Data collection 20

3.4.1 Interviewing 20

3.4.2 Questionnaires 20

3.4.3 Field observation 20

3.4.5 Documentation and recording 21

3.4.6 Focus group discussions 21

3.5.0 Data collection instruments 21

3.5.1 Library research / document study 21

3.5.2 Questionnaire 21

3.5.3 Structured interviews 21

3.6 Procedures for data collection 22

3.7 Data analysis 22

3.8 Reliability and validity 22

3.9 Ethical issues 22

CHAPTER FOUR 24

PRESENTATION, INTERPRETATION AND ANALYSIS 24

OF RESEARCH FINDINGS Error! Bookmark not defined.

4.0 Introduction 24

4.1.1 Findings on the gender ofrespondents 24

4.1.2 Findings on the age bracket of respondents 25

4.1.3 Findings on marital status 26

4.1.4 Findings on educational background 27

4.2 Findings on whether prices of commodities affect productivity of wholesale business in Lira Municipality 29

4.3 Findings on whether scarcity of resources affects productivity of wholesale business in Lira Municipality 31

4.4 Findings on effects of devaluation on the productivity of wholesale business in Lira Municipality 32

4.5 Findings on the influence of competition on wholesale business in Lira Municipality....34

CHAPTER FIVE 37

DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS 37

5.0 Introduction 37

5.1 Discussion 37

5.1.1 Prices of commodities and Productivity of Wholesale businesses 37

5.1.2 Scarcity of resources and productivity of wholesale business 37

5.1.3 Devaluation and Productivity of wholesale businesses 37

5.1.4 Competition and Productivity of wholesale business 38

5.2 Conclusion 38

5.3 Recommendations 38

APPENDIX I: REFERENCES 40

APPENDIX 2: QUESTIONNAIRE 43

APPENDIX 3: INTERVIEW GUIDES 46

ABSTRACT 

The purpose of this study is to assess the effect of inflation on productivity of wholesale traders in Lira Municipality. This research was done with the purpose of to assess the effect of inflation on productivity of wholesale traders in Lira Municipality. The definition of both the independent variable and the dependent variable were discussed. The following were the specific objectives; to examine how prices of commodities affect productivity of wholesale business in Lira Municipality, to find out the extent to which scarcity of resources affect productivity of wholesale business in Lira Municipality, to assess the effects of devaluation on the productivity of wholesale business in Lira Municipality and to examine the influence of competition on wholesale business in Lira Municipality. A combination of cross-sectional and descriptive research design was used applying both quantitative and qualitative techniques. Sample population of 108 individuals was selected by employing simple random and purposive sampling techniques. The findings revealed that, prices of commodities, scarcity of resources, devaluation and influence of competition on wholesale businesses in Lira Municipality. This therefore calls for central bank raises the Cash Reserve Ratio, sell securities and bonds to the public, take some protectionist measures and wholesalers in Lira Municipality needs to expand their storage capacity to help in the time of scarcity.