Browsing by Author "Gumisiriza, Moses"

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    Effect Of Exchange Rate Volatility on Uganda's Economic Growth.
    (Makerere University Business School, 2024-11-11) Gumisiriza, Moses
    This study investigated the effect of exchange rate volatility on economic growth in Uganda. The specific objectives of the study included investigating the determinants of economic growth in Uganda and examining the causal relationship between exchange rate volatility on economic growth. Employing the Vector Error Correction Model (VECM), the study used annual time series data that spanned from 1990 to 2021. The results of the study showed that, exchange rate volatility has a positive effect on economic growth in the short run but negative in the long-run. Though the long run effect was not significant. Government expenditure was established to have a negative effect on economic growth in short run but a positive effect in the long-run but only significant in the long run. The results indicate a positive effect of trade openness on economic growth both in the short and long run, but only significant in the short run. The Granger causality test confirmed a uni-directional causation running from exchange rate volatility to economic growth. The study recommends for maintaining an exchange rate policy that principally seeks to stabilize exchange rates. It also recommends for minimization of recurrent government expenditures by blocking all leakages and wastages in public financing.