Foreign Aid and Youth Employment in Uganda.
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Date
2025-10-25
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Makerere University Business School
Abstract
This research dissertation explores the relationship between foreign aid and youth employment in Uganda. The study investigated the effect of different types of aid, such as education, health, agroindustry, and transport infrastructure aid, on youth employment. The research employs a quantitative approach and uses secondary data from the OECD (2023) and World Development Indicators (2023) databases. The data was analyzed using the Vector Error Correction Model (VECM). The findings suggest that education aid has a negative effect on youth employment in the short run but a positive effect in the long run. Health aid has a positive effect in the short run but a negative effect in the long run. Agroindustry aid has a positive effect both in the short run and the long run. On the other hand, transport infrastructure aid has a positive and significant effect on youth employment in the long run. These findings underscore the importance of targeted and effective aid allocation to address the specific employment challenges faced by young people in Uganda. The study recommends for policymakers to consider increasing and optimizing infrastructure investments to enhance economic opportunities. Need for complementary policies that directly link these sectors to employment generation, such as vocational training, health related job programs, and agro-industry development initiatives.
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This is a master's thesis.
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Citation
Lutalo, A. S. (2025). Foreign Aid and Youth Employment in Uganda. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.