Nimrod Agasha

Export Performance of Uganda: Determinants of Export Growth Nimrod Agasha

Uganda's exports mainly comprise agricultural products such as coffee,cotton,flowers and sim sim. By 1962,traditional exports constituted agricultural products and unprocessed minerals with coffee accounting for approximately 51 percent of the foreign exchange earnings. This study sought to identify the plausible determinants of export growth in Uganda following a series of contradictions on the subject. Export growth rate was regressed on Gross Domestic Product, Terms of Trade,foreign price level, Real exchange rate and Foreign Direct Investment and findings revealed that Terms of Trade and foreign price level significantly affect Export growth. It is recommended that the motive of Foreign Direct Investment be changed from capturing the domestic market to production for export. There is need to diversify exports preferably to include manufactured goods but emphasis should be put on utilizing the newly discovered oil which if exported would attract higher prices than the current blend of exports. This work provides literature on what drives export growth in developing countries and also the role of foreign direct investment in determining export structure.