Trade liberalization policies and the competitiveness of export firms in Uganda

Abstract

Uganda has implemented trade liberalization policies since 1987. Deregulation, market opening and privatisation are expected to spur productivity, foster export competitiveness and improve resource allocation. Export firms are expected to take full advantage of the special measures and more favorable provisions to improve their competitiveness. Despite the efforts to establish conditions that will facilitate exporting activities, the response of export firms to the opportunities to improve their competitiveness is not adequately assessed. The study was intended to establish whether trade liberalization policies stimulated export firms to adjust allocation and utilisation of resources in order to improve their competitiveness. A cross sectional survey was done across firms in Wakiso, Kampala and Mukono districts. Measurement of variables was done using correlation and regression analyses. Results showed that trade liberalization increased output, domestic competitiveness but has not been effective in fostering export competitiveness and improving resource allocation.