College of Business and Management Sciences (CoBAMS)

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Browsing College of Business and Management Sciences (CoBAMS) by Subject "1990 – 2020"
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    The effect of trade openness on tax revenue mobilization in Uganda (1990 – 2020).
    (Makerere University, 2022-11) Muhwezi, Godson
    This study sought to establish the effects of Trade openness on Tax revenue in Uganda International trade tax revenue represents an important share of a country’s total public revenue hence, one underlying reason for the adoption of restrictive trade policy measures by policymakers in developing countries is the fear of losing this revenue because of greater trade openness or the liberalization of trade regimes. Despite implementing trade openness reforms, Uganda is experiencing lower revenue performance the recent being a revenue collection of UGX 19.2 trillion for the financial year 2020/2021 as compared to the revenue target of UGX 21.6 trillion for financial year 2020/2021 as given to Uganda Revenue Authority by Ministry of Finance, Planning and Economic Development. A time series data co-integration technique that uses the Autoregressive Distributed Lag (ARDL) Model was employed using tax revenue collections data covering the period 1990-2020. The data was obtained from the Ministry of Finance Planning and Economic Development (MoFPED) and the World Bank’s World Development Indicators. The study involved the use of the unit root test of Augmented Dickey Fuller (ADF) and Philips Perron (PP). The co-integration analysis is indicated by the bounds test. The results revealed that Trade openness has a negative and significant effect on Tax revenue performance in Uganda. However, Gross Domestic Product, Inflation, Government Expenditure and Foreign direct investment have a positive influence on Tax revenue in the long run. The policy implication is that in order for the government to improve revenue productivity, it should implement policies that reduce Trade openness like increased import tariffs and tariff-funded subsidies to local producers
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    An empirical analysis of the twin deficit hypothesis: Evidence from Uganda (1990 – 2020)
    (Makerere University, 2022-12) Ntege, Samuel. Ssebaggala
    This study intended to extend the discussion of the twin deficit hypothesis – an assertion that there is a positive long run relationship between the budget and current account deficits. This follows not only the perpetual surge in both deficits that has hampered inclusive growth in the previous decades in Uganda, but also the inconclusiveness, and mixed findings, which characterise the available scholarly evidence regarding the twin deficit hypothesis. Annual time series data from 1990 to 2020 from the WDI database of the World Bank, and Bank of Uganda was used to test for the validity of the twin deficit hypothesis. Utilizing the ARDL modelling techniques coupled with its associated ARDL bounds test for cointegration, this study’s key finding was that Uganda experiences a twin divergence in the long run. Based on the key findings, this study recommends that government and development partners should enhance Uganda’s trade global competitiveness, more support to indigenous investors, pursuing low and stable interest rates to attain macroeconomic stability.
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    Impact of public expenditure on economic growth in Uganda for the period of 1990 – 2020
    (Makerere University, 2022-03) Nambiro Nangobi, Racheal
    This study investigates the impact of public expenditure (disaggregated into capital and recurrent) on economic growth in Uganda using time series data for the period 1990-2020. The paper employs the Autoregressive Distributed Lag (ARDL) model. The study employs the unit root test, Philips Perron and the co-integration analysis. The key findings of the study are that development expenditure has negative and significant impact on economic growth both in the long run while recurrent expenditure has a positive significant impact on economic growth both in the long run. Further in the long run, growth of capital stock and trade openness are positively significant while inflation is negatively significant to economic growth. The study recommends that government should reduce development expenditure and increase recurrent expenditure. Further the share of the development expenditure should focus on meaningful projects that have a direct bearing on the citizen’s welfare. Government should also increase the spending patterns of recurrent expenditure through careful reallocation of resources toward productive activities that would enhance human development in the country.