Examining coffee exports contribution to economic growth in Uganda: time series analysis of coffee exports from 1982/1983 to 2021/2022

Abstract

Coffee has long been a pivotal agricultural commodity in the country, contributing significantly to its economy. This research delves into the intricate relationship between coffee exports and Uganda's economic growth, focusing on the period from 1982 to 2021. Coffee exports have historically played a substantial role in the nation's Gross Domestic Product (GDP) and foreign exchange earnings. This study seeks to uncover the nuanced nature of this relationship, addressing pressing issues such as the quality and value addition of Ugandan coffee, income disparities among coffee farmers, and the impact of changing global market dynamics. It also considers the ramifications of Uganda's recent withdrawal from the International Coffee Organization (ICO) on coffee exports. The findings of this research are critical for shaping policy decisions, sustainable development planning, and enhancing the understanding of coffee's pivotal role in Uganda's economy. It provides evidence-based recommendations to promote equitable economic growth, poverty reduction, and the sustainable development of the coffee sector in Uganda. Understanding the contribution of coffee exports to economic growth is vital not only for Uganda's development but also for the global coffee market. This study bridges knowledge gaps and contributes valuable insights to academic discussions, policy formulation, and future research endeavors in the field of coffee economics