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May 16, 2026Discover SustainabilityOpen Access

The influence of governance quality in the relationship between foreign aid and economic growth in Uganda

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Authors

EMEmmanuel MenyaJNJohn Bosco NnyanziIMIbrahim Mukisa

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Overview

Randomized trial explores the relationship between foreign aid and economic growth in Uganda, suggesting that governance quality is crucial.

Key Points

  • The study examines how governance quality affects the relationship between foreign aid and economic growth in Uganda.
  • Used autoregressive distributed lag model to analyze data from 1991 to 2023.
  • Evaluated short-run and long-run dynamics of foreign aid and economic growth.
  • Assessed the moderation effect of institutional quality on the impact of aid.
  • A 1% increase in foreign aid leads to a 0.71% decrease in economic growth with low institutional quality.
  • Economic growth increases by 0.049% with a similar increase in foreign aid at high levels of institutional quality.
  • Increased investment and broad money growth positively influence economic growth, while population growth has a short-term adverse effect.

Cite This Study

Menya et al. (2026) studied this question.

synapsesocial.com/papers/6a080a9fa487c87a6a40c8echttps://doi.org/10.1007/s43621-026-03308-4
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