School of Business

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Trade Liberalization, Export and Import Growth: Evidence from Uganda
(2009) Kilimani, Nicholas; Sebaggala, Richard
The study explores the impact of trade liberalization on export and import growth in Uganda. A number of developing countries have opened up their own economies to take full advantage of the resultant opportunities for economic development through trade. Proponents of trade liberalization envisage positive results emanating from the increased competition in the sector. For instance, liberalization aids competition in the market, by increasing the basket of goods and services with better quality and lower prices. However, trade liberalization in developing countries has been criticized for increasing import penetration on the pretext of opening up the sector to more competition. The reason is that trade policy reforms tend to have a more immediate effect on the imports than on the exports. This concern has motivated researchers to investigate whether or not the impact of trade liberalization has been greater on export growth than on import growth. This is because Uganda is one of the countries to have implemented significant economic reforms, including the liberalization of the trade regime, over the last two decades and a half. These reforms have been both external and domestic. Substantial progress has been made to reduce tariff and non-tariff barriers through the EAC. The study investigated the issue using macro and micro analysis of the Ugandan economy. The macro analysis was employed by estimating the export and import models estimated using Vector Error-Correction modeling (VECM) using time series macroeconomic data for the period 1981-2009. The results of the study suggest that trade liberalization has led more to growth in imports than exports. The macro study findings are in line with previous observations made by Morrissey, et al., (2003); Santos-Paulino (2003); Santos-Paulino & Thirlwall (2004) and Hye & Mashkoor (2010). With regard to the micro analysis several, issues under the trade sector were highlighted that could be linked to the macro evidence which were; larger growth in imports than exports. Such critical issues included the adverse effect of the dismantling of the marketing boards, the inadequacy of the trade sector infrastructure, the low value addition and limited research and dissemination of the ever-changing trends in international trade regarding the products on high demand, the standards required to access such markets as well as the absence of value chains in the tradeables sectors. These have served to inhibit export growth. These issues were manifested at a macro level analysis for instance in the weak significance of the coefficient of the foreign income as well in that of the reel exchange rate in the export growth model. This specifically is in terms of the inability for exports to substantially respond to changes in foreign income as well as prices. The findings point to a number of policy implications that require attention. The need for vigorous marketing campaigns for Uganda’s exports and improvements in the physical infrastructure in terms of road, rail and port as well as the trade mechanism specifically, the need to streamline production and marketing in order to boost the country’s export potential. This strictly calls for the development of value chains in the entire tradable sectors. A very good case of best practice that would potentially increase Uganda’s exports is that of Good African coffee which is operational in one sub region in the coffee sector. This needs to be replicated across all tradeable sectors in a scrupulous manner. This in addition also involves expansion and harnessing the production and export of new dynamic products such as fish, vegetables and cut–flowers away from the traditional commodity exports. Such interventions according to the authors are among the means to close the gap between export and import growth following trade liberalization. Any interventions short of these may not in any way help to close the ever increasing trade deficit which has been discussed at length in the background to the economy section of the study.
Environmental factors and graduate start up in Uganda
(2010) Katono, Isaac Wasswa; Heintze, Anna
Purpose: A major concern in many countries is the failure to see high levels of apparent intent to start up amongst graduates. This study investigates the relationship between social and closer valuation and intention to start a business by graduates in Uganda.
Ill-health and labour market outcomes in Uganda: evidence from 2005/06 national household survey
(2012) Matovu, Fred; Birungi, Patrick; Sebaggala, Richard
This study set out to examine the impact of ill-health on labour market outcomes in Uganda using UNHS 2005/06. Specifically, the study examined the potential economic loss of ill-health and the effects of ill-health on labour market participation, productivity and labour supply across gender and residence. We estimated three models: labour market participation, labour productivity and labour supply models. Ordinary Least Squares and two-stage Instrumental variable estimation methods were used to estimate the impact of ill-health on productivity and labour supply. The study results show that the cost of absenteeism due to ill-health was estimated to be equivalent to USD 1. 8m per year, about 0.02% of GDP in 2005. The annual average number of days worked falls as health state deteriorates and that poor health significantly lowers the number of days worked in year compared to good health. Malaria was found to be a major cause of illness among workers despite the existing cost-effective and efficacious interventions to combat malaria. The study recommends increased support to the health sector to enhance performance of the existing health interventions and improve access to healthcare services particularly to the poor. The study revealed that ill-health negatively impacts economic growth through reduced economic output due to work absenteeism. This is implies that investment in health programs has economic value by averting GDP loss due to poor health of workers. In addition, ill-health of workers affects labour market outcomes through labour supply and labour force participation but not labour productivity. The results therefore calls for health improving interventions in countries were funding to the health sector as remained low and stagnant. The improvement in labour participation and supply as result of improved health generates economic benefits to worker, the household, employer and overall economy and therefore a feasible poverty-reducing strategy.
Information Communication Technology (ICT) utilization in Uganda local governments; why low uptake?
(2012-12-08) Kyakulumbye, Stephen; Muhenda, Mary Basaasa; Namanya, Anaclet
The study was conducted in Local Governments’ in Uganda where a total of 65 respondents out of a total of 69 representing 94.2% response rate was realised after administering the study instruments over a period of six (6) months. Those Local Governments that had benefited greatly from the Uganda Governments’ ICT Infrastructure Development Project were purposively selected. Data was analysed using different statistical techniques which included descriptive statistics mainly mean and standard deviation, Pearson Product Moment Correlation Coefficient to establish the relationships between variables and Multiple Regression analysis to establish the effect of factors on ICT utilization. At bivariate level, organizational support systems, ICT infrastructure and users’ perceptions had a strong relationship with ICT utilization. Multiple regression analysis revealed that only user perceptions and organisational support had a significant positive effect on ICT utilization. Recommendations are that the Government should formulate and disseminate policies to Local Governments to regulate ICT digital divides, address strategies to change users’ negative perception towards ICT utilization and offer support to Local Government administrators to enhance ICT utilization. Further research may consider areas such as taking a comparative study to assess views from at least one or two Local Governments in Sub-Saharan Africa preferably in the East African region.
The management practices of ICT integration in the curriculum of the primary schools in Uganda
(The 8th International Conference on e-learning Capetown University of Capapeninsular university of Technology, 2013) Kyakulumbye, Stephen; Katono, Isaac Wasswa
The study investigates how ICT integration in the primary school curriculum is managed in Uganda. School management practices were conceptualized as planning, organization and coordination. The dependent variable is ICT integration. The study is a cross sectional survey using mainly quantitative data. The population comprised teachers and school head teachers in Mukono District in Uganda. Data was collected using self administered questionnaires using a likert scale. The response rate of 94.2% was sufficient to rely on the results of this study. Data was analyzed using descriptive statistical analysis, correlation analysis (Pearson Product Moment Correlation Coefficient) and multiple regression analysis to establish the causal influence of management practices on ICT integration. The major finding of this study was that planning, coordination and organization significantly impacts ICT integration. A multiple regression analysis revealed that all the management practices had a casual effect on ICT integration. Recommendations are made that the state should formulate and implement policies to schools to regulate ICT implementation and prescribe strategies to influence teachers’ attitude to ICT integration, and offer support to school management to enhance their management practices in order to manage the ICT integration process into the curriculum. In addition, based on the research, we propose that more software and hardware should be made available to schools. Further research may measure the management styles and change management strategies that may be adopted in order to successfully integrate ICT into the primary school curriculum. Such a study may be triangulated with the qualitative views from the respondents.
Employee factors, rather not customer factors drive corporate strategies for agribusiness investment in Uganda
(2014-08) Kalimunjaye, Samuel; Olobo, Maurice; Kyakulumbye, Stephen; Kisenyi, Vincent; Awio, Godwin
This paper presents evidence that corporate strategies provide the basis for agribusiness development and managing risk and uncertainty. These strategies are driven by, among others, employee factors, which are, however, usually given less attention. This study assessed corporate carbon financing strategies and competitiveness of small and medium enterprises with different management practices in Uganda. We used multiple regression analysis to assess the number one predicator for corporate carbon financing strategies. The study indicated Pearson correlation (r = 0.602**) significance at p<0.001, the result of r=0.602** were found higher than person-product correlation coefficient critical values of 0.36. This implies that as employee factors are improved there is a likelihood that corporate strategies become more innovative and they will target more opportunities and they were found to be the number one predictor of competiveness (p < 0.05).
Resource mobilization for Universities
(The Uganda Vice Chancellors’ Forum Kampala, 2015) Senyonyi, John
Higher education, the world over, is dogged with the challenge of inadequate resources. Public universities, which receive Government subventions, have over the years experienced declining public funding both in actual amount and value. All private universities in Uganda suffer an inordinate dependence on student tuition, with its attendant uncertainties.
The effects of Agricultural Extension Services on farm yields in Uganda: evidence from Agriculture Census Data
(2015) Sebaggala, Richard; Matovu, Fred
The present study investigates the productivity effects of agricultural extension services in Uganda drawing upon Uganda Agriculture Census (UCA) data (2008/2009). The descriptive show that 21% of farming households had accessed extension services from public and other providers. The proportion of household who initiated contact extension were only 3% compared to 8% through predetermined visits by extension agents and 10% through both routine and on demand. However, it was revealed that popular information sources among farmers were radio (88%) and fellow farmers (72%). We estimated treatment effect of extension contact using counterfactual framework. Results of the treatment effect model show a significant effect of access to extension services on yield. On average, farming households who had extension contact were more productive than farming households with no extension contact Implementing the ivtreatreg stata command that take care of the selection into homogeneous and heterogeneous treatment, we estimated the average treatment effect (ATE), average treatment effects on the treated (ATET) and average treatment effects on the non-treated (ATENT). The ATE had a negative sign meaning that farming households who had extension contact would have been less productive if they had not got access to extension services. The negative average value of ATET (x) implies that farming households who had extension contact would on average produce less than one tonne per acreage if they get more access to extension services, demonstrating diminishing returns associated with more and more extension contacts. The mean value of the ATENT(x) predict that on average farming households who had no extension contact would have been more productive if they had extension access. Crop productivity OLS and 2SLS estimates show that extension contact matters for farmer productivity more so if extension contact is initiated by farmer. The study recommends that extension contact has favouarble effect on farmer productivity and therefore efforts should be geared at reforming the extension system to reach the majority of unreached farmers and focus more on empowering farmers to demand extension services themselves.
Financial literacy and household investment choices in Uganda.
(2016-10) Kasalirwe, Fred; Lokina, Razack
This study aims at establishing the levels of financial literacy among households in Uganda and then investigates whether financial literacy is associated with household investment choices. Financial literacy is measured using three questions that capture an understanding of the basic financial concepts of interest rate, discounting and borrowing. Specifically, the study establishes whether households with high financial literacy levels are more likely to choose to invest; through a bank investment account, with an informal group, in a personal business or invest in Agriculture. We use both univariate and multivariate analysis techniques and a Probit model to tease out the levels of financial literacy, its determinants and its impact on household investment choices. The study results reveal low levels of financial literacy in Uganda. Also, the study reveals that financial literacy is significantly associated with household socio-demographic factors. The study finds that, financial literacy is positively and significantly associated with household investment choices. These results contribute to the government’s National Financial Literacy Strategy by establishing the population segments that is most/least financially literate hence such initiatives should be directed towards such population groups with low financial literacy levels. The study also establishes a key investment venture of Agriculture which requires to be revamped since it is neglected yet it is still very essential to the country’s economy.

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