Analysis of the contribution of fisheries sub sector to the economic growth of Uganda

Abstract

The main objective of this study was to analyze the contribution of the fisheries sector to the GDP of Uganda’s economy using quarterly data for the period 2000-2013. Specifically, the study analyzed: (i) the trend of the fish catches (fish volume) and portray clearly the inconsistencies in its contribution to the Gross Domestic Product; (ii) illustrate the long run relationship between fish catches and the Uganda’s Gross Domestic Product; (iii) assess the influence of fisheries sector to the country’s GDP and its influence on the economic growth of Uganda. To operationalize these objectives, the study employed univariate, bivariate and multiple linear regression to investigate the contribution of the fisheries sector to the Gross Domestic Product of Uganda. The study utilized quantitative approach as a design together with hypothesis testing as a purpose of the study in order to establish the relationship between the variables. The study revealed a very strong positive statistically significant relationship between the quantity of fish catches and its contribution to the country’s GDP (r=0.7951,p<0.0000) implying that the higher the quantity of fish catches results in higher GDP. Similarly, regression equation showed that economic growth is predicted to increase by Ugshs 58.9 billion when the quantity of fish catches goes up by one, decrease by Ugshs 70.1 billion when the contribution to the GDP goes up by one unit and is predicted to be 4442.8 when both the fish quantity and the contribution to GDP are zero. Although agriculture (fishing, coffee, cotton, tea and others) is the backbone and foundation of economic growth, the linkages agriculture has with other sectors are too weak and its innovative structures inadequate for promoting economic growth which is due to inadequate government funding in the agricultural sector yet it supports more than half of the country’s working and active population.