Browsing by Author "Kisaalita, Thomas"

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    International Oil Prices, Lending Interest Rate and Unemployment in Uganda.
    (Makerere University Business School, 2021-03-04) Kisaalita, Thomas
    This study analyses and investigates the impact of international oil prices and the lending interest rate on unemployment in Uganda. The study employs a bounds test cointegration technique based on autoregressive distributive lag to model unemployment against international oil prices, lending interest rates, real effective exchange rate and gross domestic product. Using annual data for the period 1987-2018, econometric results show that the first lagged difference of lending interest rate, the real effective exchange rate and GDP are the most important determinants of unemployment in the short run, while GDP is the most important determinant of unemployment in the long run. Results show that, in order to reduce unemployment in Uganda, there is need to pay attention to the lending interest rate, the real effective exchange rate and as well accelerate GDP growth especially in the short run. Unlike previous studies that have looked at unemployment, this study includes international oil prices in examining the unemployment problem in Uganda.