The Determinants of Household Expenditures in Uganda
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The main objective of this study was to investigate the determinants of household expenditure in Uganda. The study further had two specific objectives which included; finding out the influence of the highest level of education of the head of the household on the households’ expenditure and ascertaining a relationship between food expenditure and the size of the household in Uganda. The study applied a non-experimental design called descriptive survey research design. The design involves primary research methods for the collection of primary data. The justification for using this design is that it clearly explores the existing status of two or more variables at a given time. This study only employed secondary data, and it was collected the Uganda Bureau of Statistics (UBOS). This data covered the Uganda National Household Survey of 2016/17. To obtain the sample size, Fisher’s method of sampling was used to select a sample of 500 households. A simple random selection was used because it is convenient, time saving and does not create room for bias. After data was collected, it was analyzed to examine the fundamental determinants of household expenditure using STATA and Microsoft excel. The dependent variable being the total household expenditure which was considered as the sum of all the consumption expenditure in the last one month and the non-consumption expenditure per household. Study results showed that the majority (95.6%) of the respondents who took part in this study were females with an average age of 35.49 years. Additionally, study results also showed that most (48.6%) of the respondents had acquired primary education as the highest level of education. Chi-square results showed that the p-value of highest level of education of women is 0.045 which is less than 0.05. This therefore implies that there is a significant relationship between the highest level of education of the household head and households’ expenditure at 95% significance level. Variance of Analysis (ANOVA) was run to find out the relationship between food expenditure and the size of the household. The regression results in showed a statistically significant positive relationship at (at 5 percent level of significance) between the age, sex, income level, occupation and household expenditure in this study since its P-value is less than 0.05. The study further recommends that even though almost all respondents need support, those in the northern and eastern must be targeted for urgent support by both Government Organizations (Gos) and Non-Governmental Organizations (NGOs).