Table of contents
Declaration ............••..•.......•..•.............••....••.......................•...•........... ... ii
Approval. ............•••••.......•••••...........•••.••............•.••••........•••.•.•............. iii
Dedication ........................................................................................ .... iv
Acknowledgement .................................................................................. v
Table of contents ................................................................................... vi
Abstract .............................................................................................. ix
List of figures and tables ............................................................................ x
Abbreviations ........................................................................................ xi
CHAPTER ONE ............................................................... ...................... 1
INTRODUCTION ..................................................................... !
I.I Background ofthe study ........................................................................ l
I .2 Statement of the problem ........................................................................ 2
1.3 Objective of the study ........................................................................... 2
1.4 Purpose of the study .............................................................................. 2
1.5 Significance of the study ........................................................................ 2
1.6 Scope of the study ................................................................................ 3
I. 7 Research questions ............................................................................... 3
CHAPTER TWO .....•...••.....•..••..........••.••......••........•••......•••.•......••..••••. .. .4
LITERATURE REVIEW ............................................................ 4
2. I Introduction ................................................................................. .••.• .4
2.2 Balance of payment ........................................................................... ... 5
2.2.1 Balance of payment deficit ................................................................... 5
2.2.2 Diagrammatic exposition of bop statement ................................................ 6
2.2.3 Economic growth .............................................................................. 7
2.3 UGANDA'S ECONOMIC STATUS ......................................................... 7
2.4 UGANDA'S EXTERNAL SECTOR DEVELOPMENTS ................................. S
vi
2.4.1 Imports ....••..........•.•..............••••............••••...........•••............•......•.•. 8
2.4.2 Official and private transfers .•.•.............•.•.•................•........•..•....•.•....... 9
2.4.3 Foreign direct investments •............••••.•................••.......•••••................... 9
2.4.4 External debt payments •.•.........•..•..........................•...............••....•...•.•. 9
CHAPTER THREE .....•.•••.....••.••.•••..........•••••.•..........•.••..........•.••... ......... 10
METHODOLOGY .................................................................. 10
3.1 Introduction •........••••••.•......••••••...........••••••.•....•..••••........•••••...... ........ 10
3.2 Sources of data ......•........•..•.••..........••..•..........••..•.. ........•...............•... 10
3.2.1 Primary sources ...•.•.••......•.••••.•............•..........•.•..........•......... .......•.• 10
3.2.2 Secondary sources ...........••............•.•...........••................................... ll
3.3 Population study ••••.....••.••••.......••••••...........••.........•.•........••................ 11
3.4 Sampling design •......•...........••..............••..........•............••.......••...•....•. 12
3.5 Measurement scales •••........•.•••........•••••••......•.••.........•.••......•.•••••.•••..... 12
3.5.1 Trust ............................................................................................ 12
3.5.2 Commitment .................................................................................. 12
3.5.3 Attitudinalloyalty ........................................................................... l2
3.6 Data processing and analysis ................................................... .............. 12
3.7 Limitations met in research and other general constraints ............................... l3
3.8 Questionnaire design on effect of bop deficit on economic growth (case study
Uganda) .............................................................................................. 13
CHAPTER FOUR ........................................................................... ....... 14
PRESENTATION AND ANALYSIS OF THE FINDINGS .................. 14
4.1 1NTRODUCT10N .............................................................................. 14
4.1.1 The purpose of the study ................................................................... .. 14
4.1.2 Areas of emphasis under study ............................................................. 14
4.2 NATURE AND QUALITY OF UGANDA'S OUTPUT (EXPORTS) .................. lS
4.3 NATURE OF UGANDA'S IMPORTS ...................................................... 17
4.4 DIRECTION OF UGANDA'S TRADE ..................................................... 17
4.5 TRADE BALANCE ........................................................................... 20
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4.6 COMPOSITION AND LEVEL OF UGANDA'S SA VINGS ........................... 20
4.7 UGANDA'S ECONOMIC GROWTH LEVEL ............................................ 21
4. 7 .I Level of capital, financial and debt indicators in Uganda 2003/4. ; ................... 24
4.7.2 Domestic debt ................................................................................. 24
4.7.3 External debt indicators ..................................................................... 25
4. 7.4 Relationship between economic growth indicators ...................................... 27
4.8 OVER ALL BALANCE OF PAYMENT POSITION OF UGANDA .................. 27
4.9 DISCUSSION OF FINDINGS ............................................................... 29
CHAPTER FIVE .................................................................................... 30
SUMMARY, RECOMMENDATIONS, CONCLUSION AND
REFERENCES ................................................................................... 30
5.1 INTRODUCTION .............................................................................. 30
5.2 SUMMARY ..................................................................................... 30
5.3 RECOMMENDA TION ........................................................................ 31
5.4 OTHER AREAS FOR FURTHER RESEARCH .......................................... 31
5.5 CONCLUSION ................................................................................. 32
REFERENCE ........................................................................................ 33
APPENDICES ....................................................................................... 34
Abstract The study was carried out to determine the effect of balance of payments deficit on the economic growth of Uganda. It was clearly discovered that there was a problem in the balance of payment statement as a result of poor exports, high expenditure level on imports that are greater than what is earned from exports. It is due to this that the objective of the study was carried out to; • To establish and analyze the balance of payment records and their effects on economic growth. • Composition of Uganda's outputs and inputs. • Relationship between the economic growth indicators. • To find out what level does Uganda depend on the external sources of funds. The study used primary and secondary data as collection methods. The collected findings established that there was varying expenditure, income patterns which led to the balancer of payment deficit thus affecting economic growth. From the findings the following were recommended; • Gover5ment should adopt best expenditure patterns. • Improve on the quality of exports. • Proper implementation and book keeping of records With the above recommendation and more to be looked at it is hoped that this will solve the balance of payment deficit leading to reduced over dependence on external sources of funds hence increasing the economic growth of Uganda.
