High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach

Paul Wabiga; Sawuya Nakijoba

doi:doi:10.11648/j.ijber.20180706.13

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High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach

Paul Wabiga, Sawuya Nakijoba

Published in International Journal of Business and Economics Research (Volume 7, Issue 6)

Received: 5 September 2018 Accepted: 26 September 2018 Published: 1 November 2018

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Abstract

This study examines the relationship between high technology exports, gross capital formation and economic growth in Uganda with the ultimate aim of establishing whether exportation of high-tech goods and gross capital formation have a significant effect on economic growth. Motivated by the continued policy shift in Sub-Saharan Africa and generally in the developing world, towards outward looking strategies, this study seeks to provide a validation test to this trend from a small open developing country perspective. The study utilizes data from the World Bank Development Indicators. This study estimates a basic Vector Autoregressive model to establish the likely effects of high-tech exports and gross capital formation on growth. The authors later provide in-depth analysis of our results using impulse response functions (IRF). Our Vector Auto Regression (VAR) results indicate that in the short run, high-tech exports do not have a significant effect on economic growth in Uganda and gross capital formation has a negative and significant effect. However, IRF reveals gross capital formation having a positive and significant effect on growth and the effect of high-tech exports improving significantly over a long horizon. Our findings do not contradict previous studies but support the belief that once economic fundamentals are put in place, high-tech exportation can spur growth more than mere export volumes.

Published in	International Journal of Business and Economics Research (Volume 7, Issue 6)
DOI	10.11648/j.ijber.20180706.13
Page(s)	191-202
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

High Technology Exports, Gross Capital Formation, Economic Growth, VAR, IRFs, Uganda

References

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APA Style

Paul Wabiga, Sawuya Nakijoba. (2018). High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach. International Journal of Business and Economics Research, 7(6), 191-202. https://doi.org/10.11648/j.ijber.20180706.13

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ACS Style

Paul Wabiga; Sawuya Nakijoba. High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach. Int. J. Bus. Econ. Res. 2018, 7(6), 191-202. doi: 10.11648/j.ijber.20180706.13

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AMA Style

Paul Wabiga, Sawuya Nakijoba. High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach. Int J Bus Econ Res. 2018;7(6):191-202. doi: 10.11648/j.ijber.20180706.13

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@article{10.11648/j.ijber.20180706.13,
  author = {Paul Wabiga and Sawuya Nakijoba},
  title = {High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach},
  journal = {International Journal of Business and Economics Research},
  volume = {7},
  number = {6},
  pages = {191-202},
  doi = {10.11648/j.ijber.20180706.13},
  url = {https://doi.org/10.11648/j.ijber.20180706.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20180706.13},
  abstract = {This study examines the relationship between high technology exports, gross capital formation and economic growth in Uganda with the ultimate aim of establishing whether exportation of high-tech goods and gross capital formation have a significant effect on economic growth. Motivated by the continued policy shift in Sub-Saharan Africa and generally in the developing world, towards outward looking strategies, this study seeks to provide a validation test to this trend from a small open developing country perspective. The study utilizes data from the World Bank Development Indicators. This study estimates a basic Vector Autoregressive model to establish the likely effects of high-tech exports and gross capital formation on growth. The authors later provide in-depth analysis of our results using impulse response functions (IRF). Our Vector Auto Regression (VAR) results indicate that in the short run, high-tech exports do not have a significant effect on economic growth in Uganda and gross capital formation has a negative and significant effect. However, IRF reveals gross capital formation having a positive and significant effect on growth and the effect of high-tech exports improving significantly over a long horizon. Our findings do not contradict previous studies but support the belief that once economic fundamentals are put in place, high-tech exportation can spur growth more than mere export volumes.},
 year = {2018}
}

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TY  - JOUR
T1  - High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach
AU  - Paul Wabiga
AU  - Sawuya Nakijoba
Y1  - 2018/11/01
PY  - 2018
N1  - https://doi.org/10.11648/j.ijber.20180706.13
DO  - 10.11648/j.ijber.20180706.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 191
EP  - 202
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20180706.13
AB  - This study examines the relationship between high technology exports, gross capital formation and economic growth in Uganda with the ultimate aim of establishing whether exportation of high-tech goods and gross capital formation have a significant effect on economic growth. Motivated by the continued policy shift in Sub-Saharan Africa and generally in the developing world, towards outward looking strategies, this study seeks to provide a validation test to this trend from a small open developing country perspective. The study utilizes data from the World Bank Development Indicators. This study estimates a basic Vector Autoregressive model to establish the likely effects of high-tech exports and gross capital formation on growth. The authors later provide in-depth analysis of our results using impulse response functions (IRF). Our Vector Auto Regression (VAR) results indicate that in the short run, high-tech exports do not have a significant effect on economic growth in Uganda and gross capital formation has a negative and significant effect. However, IRF reveals gross capital formation having a positive and significant effect on growth and the effect of high-tech exports improving significantly over a long horizon. Our findings do not contradict previous studies but support the belief that once economic fundamentals are put in place, high-tech exportation can spur growth more than mere export volumes.
VL  - 7
IS  - 6
ER  -

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Author Information

Paul Wabiga

Graduate School of Economic and Management Sciences (GEM), Stellenbosch University, Stellenbosch, South Africa
Sawuya Nakijoba

Capacity Development Division, United Nations Economic Commission for Africa (UNECA), Addis Ababa, Ethiopia

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Plain Text BibTeX RIS

APA Style

Paul Wabiga, Sawuya Nakijoba. (2018). High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach. International Journal of Business and Economics Research, 7(6), 191-202. https://doi.org/10.11648/j.ijber.20180706.13

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ACS Style

Paul Wabiga; Sawuya Nakijoba. High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach. Int. J. Bus. Econ. Res. 2018, 7(6), 191-202. doi: 10.11648/j.ijber.20180706.13

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AMA Style

Paul Wabiga, Sawuya Nakijoba. High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach. Int J Bus Econ Res. 2018;7(6):191-202. doi: 10.11648/j.ijber.20180706.13

Copy | Download

@article{10.11648/j.ijber.20180706.13,
  author = {Paul Wabiga and Sawuya Nakijoba},
  title = {High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach},
  journal = {International Journal of Business and Economics Research},
  volume = {7},
  number = {6},
  pages = {191-202},
  doi = {10.11648/j.ijber.20180706.13},
  url = {https://doi.org/10.11648/j.ijber.20180706.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20180706.13},
  abstract = {This study examines the relationship between high technology exports, gross capital formation and economic growth in Uganda with the ultimate aim of establishing whether exportation of high-tech goods and gross capital formation have a significant effect on economic growth. Motivated by the continued policy shift in Sub-Saharan Africa and generally in the developing world, towards outward looking strategies, this study seeks to provide a validation test to this trend from a small open developing country perspective. The study utilizes data from the World Bank Development Indicators. This study estimates a basic Vector Autoregressive model to establish the likely effects of high-tech exports and gross capital formation on growth. The authors later provide in-depth analysis of our results using impulse response functions (IRF). Our Vector Auto Regression (VAR) results indicate that in the short run, high-tech exports do not have a significant effect on economic growth in Uganda and gross capital formation has a negative and significant effect. However, IRF reveals gross capital formation having a positive and significant effect on growth and the effect of high-tech exports improving significantly over a long horizon. Our findings do not contradict previous studies but support the belief that once economic fundamentals are put in place, high-tech exportation can spur growth more than mere export volumes.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - High Technology Exports, Gross Capital Formation and Economic Growth in Uganda: A Vector Auto Regressive Approach
AU  - Paul Wabiga
AU  - Sawuya Nakijoba
Y1  - 2018/11/01
PY  - 2018
N1  - https://doi.org/10.11648/j.ijber.20180706.13
DO  - 10.11648/j.ijber.20180706.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 191
EP  - 202
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20180706.13
AB  - This study examines the relationship between high technology exports, gross capital formation and economic growth in Uganda with the ultimate aim of establishing whether exportation of high-tech goods and gross capital formation have a significant effect on economic growth. Motivated by the continued policy shift in Sub-Saharan Africa and generally in the developing world, towards outward looking strategies, this study seeks to provide a validation test to this trend from a small open developing country perspective. The study utilizes data from the World Bank Development Indicators. This study estimates a basic Vector Autoregressive model to establish the likely effects of high-tech exports and gross capital formation on growth. The authors later provide in-depth analysis of our results using impulse response functions (IRF). Our Vector Auto Regression (VAR) results indicate that in the short run, high-tech exports do not have a significant effect on economic growth in Uganda and gross capital formation has a negative and significant effect. However, IRF reveals gross capital formation having a positive and significant effect on growth and the effect of high-tech exports improving significantly over a long horizon. Our findings do not contradict previous studies but support the belief that once economic fundamentals are put in place, high-tech exportation can spur growth more than mere export volumes.
VL  - 7
IS  - 6
ER  -

Copy | Download