• Login
    View Item 
    •   Mak IR Home
    • College of Business and Management Sciences (CoBAMS)
    • School of Economics (SE)
    • School of Economics (SE) Collections
    • View Item
    •   Mak IR Home
    • College of Business and Management Sciences (CoBAMS)
    • School of Economics (SE)
    • School of Economics (SE) Collections
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Bank Credit and Private Investments in Uganda

    Thumbnail
    View/Open
    Masters research report (1.241Mb)
    Date
    2019-11-28
    Author
    Natukunda, Grace
    Metadata
    Show full item record
    Abstract
    This study empirically establishes the impact of bank credit to the private sector on domestic private investment in Uganda. Specifically, the study investigates other factors that affect domestic private investment in Uganda which include Inflation (INF), Nominal Exchange Rate (NER), Gross Domestic Product Growth Rate (GDPg) and Government Investment (GI). The data used in this study was collected from both the International Monetary Fund IMF and the World Bank databases. The Augmented Dickey-Fuller (ADF) (1979) was employed to test for the time-series properties of the variables used in the study both in levels and in the first difference. The results showed that there was a combination of both I(0) and I(1) variables in the model. That is, GDP growth rate and nominal exchange rate were found to be stationary at a level while private investment, bank credit, government investment, and inflation were found to be non-stationary at levels but became stationary after the first difference. And therefore, the ARDL bounds testing methodology was adopted to test for both the long-run relationship and short-run dynamics of the model. The empirical results suggest that in the long run, bank credit to the private sector, Gross Domestic Product growth rate, and government investment have positive impacts on private investment, while nominal exchange rate and inflation have negative effects on private investment. The short-run results, on the other hand, show that bank credit to the private sector, government investment, nominal exchange rate, and inflation have a negative and statistically significant effect on private investment while GDP was found not to be statistically significant in the short run. Post- estimation diagnostic tests conducted revealed that the model was free from problems of serial correlation, heteroscedasticity, and multicollinearity. In addition, the errors of the model are normally distributed and the parameters are stable as shown by the CUSUM and CUSUMsq control charts. The study recommends increased access to bank credit by the private sector, increased infrastructural development through increased government investments and a stable and predictable economic environment in order to increase private investment in Uganda.
    URI
    http://hdl.handle.net/10570/7740
    Collections
    • School of Economics (SE) Collections

    DSpace 5.8 copyright © Makerere University 
    Contact Us | Send Feedback
    Theme by 
    Atmire NV
     

     

    Browse

    All of Mak IRCommunities & CollectionsTitlesAuthorsBy AdvisorBy Issue DateSubjectsBy TypeThis CollectionTitlesAuthorsBy AdvisorBy Issue DateSubjectsBy Type

    My Account

    LoginRegister

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    DSpace 5.8 copyright © Makerere University 
    Contact Us | Send Feedback
    Theme by 
    Atmire NV