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Journal for Development and Leadership

Volume 5, Number 2


 

Growth rates, revenues and the performance of the export sector inuganda
B. Nakalanzi and R. Kyagulanyi

This study explores the relationship between factors affecting export growth rates, revenues and the performance of the export sector in Uganda. It considered a time scope of 17 years i.e. 19962012. A series of t-statistic tests, correlation and regression analyses were conducted to test for the relationship as well as the factors. The following export model(Ln X= ko + k1 ln PXt + k2 ln REER t+ k3 ln OPNt + k4 ln Qt +k5 ln TOTt) was run and it was found out that the explanatory variables explained only 73 per cent of the dependent variable though there was a high positive correlation between exports and openness and a high negative correlation between exports and their prices as well as with real exchange rates. Furthermore, the study showed that though the factors in the model are relevant: there was a need for the government of Uganda to invest more in research (using primary data) so as to obtainthe other factors that may have led to low export growth rates, revenues and hence the poor performance of the export sector

Keywords: Foreign direct investment; non-traditional exports; gross domestic product; macroeconomic environment