Department of Economics and Energy

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Browsing Department of Economics and Energy by Author "Nalunkuma, Shamirah"

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    External Debt and Poverty Level in Uganda.
    (2023) Nalunkuma, Shamirah
    This study investigated the effect of External Debt (EXD) on Poverty level in Uganda. The specific objectives of the study included establishing the short run and long run effects of external debt, debt servicing and income percapita on poverty level. Employing the Vector Error Correction Model (VECM), the study used time series data that spanned a period of 28 years ranging from 1992 to 2019. The results of the study showed that, in the short run, external debt, percapita income and debt servicing do not influence the poverty level. In the long run, external debt and debt servicing were found to increase poverty level while percapita income had was found to reduce poverty level and statistically significant. The granger casualty test indicated a uni-directional causation running from poverty level to external debt in Ugandan. The study recommends that the Government needs to mobilize its domestic savings that are more reliable and less risky, and it should pursue vigorously policy initiatives that will alleviate poverty.