Public investment and its impact on economic growth in Uganda

Abstract

The study examined the impact of Public investment on economic growth in Uganda using annual time series data from 1982-2016. The findings showed that Public investment on Infrastructure (Roads) is highly significant and is a positive determinant of economic growth. In the same way, government investment in the social sectors of Health and Education were also found to have a significant positive impact on economic growth in Uganda. This study stresses that public expenditure is important for economic growth, and therefore recommended that government needs to increase budgetary allocations to the sectors which support economic growth to move the country forward whilst encouraging private sector led growth. Excessive efforts should be exerted by the government of Uganda to improve on transport infrastructure and the health and education sector. Also the study has not exhausted all the public expenditure components including productive investment like in Agriculture and Industries thus creating areas for further research.