Title: Public Expenditure On Education, Health, And Its Effect On Economic Growth In Uganda (1990-2024)
Authors: Wabomba Kadili, & Ssekabira Godfrey
Volume: 10
Issue: 1
Pages: 28-35
Publication Date: 2026/01/28
Abstract:
This study investigates the effect of public expenditure on education and health on economic growth in Uganda over the period 1990-2024. Using a longitudinal research design and ARDL modeling, the study examines both short- and long-run relationships between sectoral investment and GDP growth. Descriptive statistics reveal moderate variability in economic growth, while education and health spending show sustained investment patterns. Unit root and cointegration tests confirm stationarity and a long-run relationship among variables. Empirical evidence indicates that investments in education and health positively influence growth by enhancing human capital, labor productivity, and private sector development. Diagnostic tests confirm model reliability, with no heteroskedasticity or multicollinearity. The findings underscore that while public investment positively influences economic performance, the magnitude of its impact depends on efficiency, governance, project execution, and alignment with national policies. The study contributes to the literature by providing evidence on the short- and long-term effects of sectoral investment in Uganda and offers policy guidance for optimizing resource allocation to achieve sustainable economic growth.