Title: Monetary policy and economic growth in Uganda: an empirical investigation

Authors: Enock Nyorekwa Twinoburyo; Nicholas M. Odhiambo

Addresses: Department of Economics, University of South Africa, P.O. Box 392, UNISA 0003, Pretoria, South Africa ' Department of Economics, University of South Africa, P.O. Box 392, UNISA 0003, Pretoria, South Africa

Abstract: This study examines the impact of monetary policy on economic growth in Uganda during the period from 1983 to 2014. Using the newly developed ARDL bounds testing approach, the empirical results of this study show that money supply has a positive significant impact on economic growth, both in the short run and in the long run. However, interest rates were found to have a positive impact on economic growth only in the short run. In the long run they were found to have no significant impact on economic growth. Overall, monetary policy matters for economic growth but there is a need for further reforms aimed at the development of the financial sector as well as improvement in monetary and fiscal policy coordination.

Keywords: Uganda; monetary policy; economic growth; money supply; interest rates.

DOI: 10.1504/IJSE.2017.085050

International Journal of Sustainable Economy, 2017 Vol.9 No.3, pp.199 - 212

Received: 09 Jun 2016
Accepted: 16 Sep 2016
Published online: 10 Jul 2017 *

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