Imports And Gross Domestic Product Of Uganda (2003-2013)

ABSTRACT

This research report was set out to investigate the relationship between Imports and

economic growth (measured by GDP) In Uganda (2003-2013), the study employed time

series survey data since examined data for a short time, its objectives were; to

establish the trend of Import in Uganda(2003-2013, to establish the trend of GDP

growth of Uganda(2003-2013) ,to investigate the relationship between Import and GDP

growth In Uganda (2003-2013), the hypothesis of the study was there Is no significant

relationship between Imports and GDP growth In Uganda time series analysis such

Correlation analysis, regression analysis mechanisms were used.

The trend of imports and GDP growth showed a general Increase with percentages

change of 80.65 and 66.1 percent respectively. Using the correlation, regression

approach, there was a strong positive correlation between Imports and GDP

growth(r=0.9770), there was also significant relationship between imports and GDP

growth at 0.05 level of significance) stationary was tested and found that both imports

and GDP has trend by using ACE and PACF. In conclusion therefore both Import and

GDP growth has a general increase, there is a positive relationship between Import and

growth in Uganda which agreed with Khan(1997), Grima (1982),Connoliy(i998) study

on Imports and GDP growth •thls has implied that the importation of goods and services

play a very important role In economic growth of Uganda.

The trend in Import ImplIes that as people Income Increases the demand for foreign

goods and services Increases. The study has also supported the theory of comparative

advantages since developing country like Uganda cannot foster without Importation &

goods and services. Finally Uganda should embark much on the exportation of good to increase on the country level of growth.