Factors affecting economic growth in Uganda (1994-2016)

Abstract

This study was designed to investigate the factors that affect economic growth of Uganda and the data used was used beginning from 1994 to 2016. Emphasis was put to examine the relationship between natural resource use, inflation rate and technological growth with economic growth, ToT’s influence on economic growth and population growth's effect on economic growth. The study employed a linear regression to establish a relationship between the independent variables (inflation rate, population growth rate, technologic growth, ToT and natural resource use) with the dependent variable (economic growth). This formed the basis of the detailed analysis, conclusions and recommendations. The findings revealed that all the independent factors listed above do not have any significant relationship with GDP since all their p-values were greater than 0.05. But it was also found out that population rate had the highest positive correlation relationship with GDP. Inflation rate, technological growth and natural resource use all had positive correlations with GDP meanwhile ToT index had a negative weak correlation with GDP. On the basis of the conclusions made, the researcher recommended that; Uganda should continue empowering the population so that they continue being productive since there is a very high positive relationship between population growth rate with GDP.