Foreign Direct Investment Inflows, Volatility and Economic Growth in Uganda.
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Date
2023
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Abstract
This study aimed at examining the effect of FDI inflows and FDI-inflow volatility on economic growth in Uganda. Although Uganda has targeted annual growth of about 8% per year over a thirty year period to become a modern state, GDP growth has annually remained below target. This is despite the liberalised investment climate. The study thus set out to establish how FDI inflows and FDI-inflow volatility affected growth in the country. Time series data for the period 1991-2020 are used in the analysis. The empirical model is estimated by the method of Auto Regressive Distributed Lag (ARDL). Results show that FDI inflows have a positive and significant effect on Uganda’s GDP both in the short run and in the long run whereas volatility positively affected GDP in the short run but with a negative long run effect. The study thus recommends broadening of FDI inflows as well as streamlining of the investment code to reduce FDI volatilities.
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A Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Arts in Economic Policy and Management of Makerere University. (PLAN A).
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Lillian, N (2023) Foreign Direct Investment Inflows, Volatility and Economic Growth in Uganda. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.