What question did this study set out to answer?

To investigate the short- and long-run relationships between economic growth rates and the expansion of the informal economy in Uganda.

January 1, 2021Development Studies ResearchOpen Access

Is informality a barrier to economic growth in Uganda? Empirical analysis

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Authors

SEStephen EsakuKyambogo University

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Implication

Time series analysis reveals that increasing economic informality reduces short- and long-run economic growth in Uganda, suggesting shadow markets constrain public service funding.

Key Points

To investigate the short- and long-run relationships between economic growth rates and the expansion of the informal economy in Uganda.
Analyzed macroeconomic annual time series data spanning from 1991 to 2017.
Employed an autoregressive distributed lag (ARDL) modeling framework to evaluate dynamic short- and long-run relationships.
Demonstrated that increases in informality significantly decrease the rate of economic growth in both the short- and long-run.
Identified that widespread informality reduces government tax collection, directly impairing the public funding of essential social services.

Cite This Study

Stephen Esaku (2021) studied this question.

synapsesocial.com/papers/6a7045b9febe604dd7090dcd https://doi.org/10.1080/21665095.2021.1919167

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Implication

Time series analysis reveals that increasing economic informality reduces short- and long-run economic growth in Uganda, suggesting shadow markets constrain public service funding.

Is informality a barrier to economic growth in Uganda? Empirical analysis

Discussion

Member takes

Implication

Key Points

Cite This Study

Is informality a barrier to economic growth in Uganda? Empirical analysis

Discussion

Member takes

Implication

Key Points

Cite This Study

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