Investigating the Effect of Infrastructural Development on Economic Growth in Uganda

Abstract

Aim: The study used quarterly time series data to investigate the effect of infrastructural development on Economic Growth in Uganda. Place and Duration of Study: the study utilized data for the period between 2005-2020 obtained from the 2022 World Bank’s World Development Indicators (WDI) and the African Development Bank for African Infrastructure Development Index (AIDI). Methodology: The study used the Autoregressive Distributed Lag (ARDL) model to analyze the relationship between infrastructure development and Economic Growth in Uganda. Results: The findings from the study indicated a positive relationship between AIDI and Economic growth in Uganda. Overall improvement in AIDI considering the four infrastructure components creates an enabling environment for other factors of production to operate effectively and efficiently hence spurring economic growth in the country. Conclusion: The findings therefore implies that investment in infrastructure should consider all the four infrastructure components that comprise the AIDI namely, Transport, Electricity, ICT and Water and Sanitation for Uganda to be able to fully benefit from its investment in infrastructure in both the short and long run.