Title: A Casual Link between Gross Domestic Capital Formation and Economic Growth in Uganda: 1991 - 2022
Authors: Ssentamu Ismail
Mutasa Felician
Lyanga Timothy
Volume: 8
Issue: 7
Pages: 18-22
Publication Date: 2024/07/28
Abstract:
For the years 1991 to 2022, the investigation examines the connection between Uganda's GDP and Domestic Capital Formation (DCF). The study's goal was to evaluate the causal connection of DCF and GDP. The study put forth the hypothesis that DCF and GDP are significantly correlated. In order to assess the stationarity of variables, researcher used ADF Approach. Also Error Correction Model (ECM) to check the short- and long-term impacts of one time series on another. The ECM's outcome indicated that GDP and DCF are significantly related in the short and long terms. Therefore the null hypothesis is rejected because the expected relationship is achieved. From the above results, different policy implications and recommendations were suggested; the government should encourage domestic savings amongst the citizens and thus investment which inturn improves the DCF in the country.