Determinants of foreign direct investments inflows in Uganda 1998-2017

Abstract

This study assessed the determinants of foreign direct invest inflows in Uganda during the period of 1988 to 2017. Secondary data from bank of Uganda tables, Uganda national bureau of statistics, united national statistics division common database was used in this study to assess the various determinants of foreign direct investment inflows in Uganda.

The secondary data was analyzed using STATA 15 statistical software package to provide findings. Analysis was done at three levels, that is, descriptive statistics (frequencies) at the univariate level, test for normality, test for stationarity, and test for cointegration. The labor force and consumer price index were not statistically significant in this study.

Gross domestic product per capita and population growth rate were statistically significant (p < 0.05) level were considered to influence the determinants of foreign direct investment inflows in Uganda. However, Policy makers need to re-examine the investment policy to provide a limited grace period within which investment should be made after which if no investment is made, the license is revoked, Policy makers should focus on the competitive advantages Uganda has in terms of being located centrally in the East African market, Policy makers should advocate for infrastructure improvement like the rail network, the road network, communication infrastructure, and improved financial sector.