Determinants Of Manufacturing Sector Growth in the East African Community.
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Date
2023-12-04
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Makerere University Business School
Abstract
This study examines the factors influencing manufacturing sector growth in East African Community (EAC) member states from 2001 to 2021, focusing on inflation, Foreign Direct Investment (FDI), lending rates, and Domestic Credit. Panel data was utilized and the Feasible Generalized Least Squares (FGLS) estimator was applied to address heteroskedasticity and autocorrelation. Results indicate that inflation and lending rates significantly impact manufacturing sector growth, while Domestic Credit and FDI do not show significant effects. The study highlights the importance of maintaining macroeconomic stability through effective inflation control measures and sound monetary policies to facilitate manufacturing sector growth. The report also stresses the necessity of steady and affordable loan rates for manufacturers, which can be attained through focused interventions and rewards for financial institutions. Attracting FDI to the manufacturing sector remains crucial, and governments should actively pursue such opportunities. Continued research is recommended to deepen our understanding of the complexities surrounding manufacturing sector growth. These actions collectively aim to bolster industrialization and economic growth in EAC member states, ultimately promoting prosperity throughout the region.
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This is a master's thesis.
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Citation
Wako, I K. (2023). Determinants Of Manufacturing Sector Growth in the East African Community. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.