Imports And Economic Growth In Uganda (1995-2011)

ABSTRACT

This research report set out to investigate the relationship between imports and economic

growth (measured by GDP) in Uganda (1995-20 1 1), the study employed time series survey data

since examined data for a short time ,its objectives were; to establish the trend of import in

Uganda(1995-201 1, to establish the trend of GDP growth of Uganda(1995-201 1) ,to investigate

the relationship between import and GDP growth in Uganda (1995-2011), the hypothesis of the

study was there is no significant relationship between imports and GDP growth in Uganda time

series analysis such Correlation analysis, regression analysis mechanisms were used. The trend

of imports and GDP growth showed a general increase with percentages change of 80.65and 66. 1

percent respectively. Using the correlation, regression approach, there was a strong positive

correlation between imports and GDP growth(r0.994 ),there was also significant relationship

between imports and GDP growth at 0.05. level of significance,) stationary was tested and found

that both imports and GDP has trend by using ACF and PACF. In conclusion therefore. both

import and GDP growth has a general increase, there is a positive relationship between import

and growth in Uganda which agreed with Khan(1997), Grima(1982),Connolly(1998) study on

imports and GDP growth this has implied that the importation of goods and services play a very

important role in economic growth of Uganda. The trend in import implies that as people iiicome

increases the demand ~or foreign goods and services increases. The study has also supported the

theory of comparative advantages since developing country like Uganda cannot foster without

importation of goods and services. Finally Uganda should embark much on the exportation of good to increase on the country level of growth.