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The study investigates the impact of decentralization and local government capacity on efficiency of health service delivery in Uganda applying qualitative analysis, and two stage Data Envelopment Analysis (DEA) on quantitative data covering a sample of 44 districts over the period 2008/09 and 2009/10. The results show that health institutions in about 31 districts out of 44 were technically efficient, while those in about 13 districts were technically inefficient under variable returns to scale (VRS), implying that health resources were not efficiently used in these institutions. Health institutions in 56.8 percent and 45.5 percent of the districts were operating at optimal scale in 2008/09 and 2009/10, respectively. Those in the remaining districts were scale inefficient, with a majority of them operating under decreasing returns to scale (DRS). Effective and accountable decentralized governance in the health sector in Uganda is typically constrained by weak capacity, particularly under-staffing at the districts levels. Policy recommendations include strengthening professional staffing in some districts to improve their capacity to deliver efficient health services; transfers of officials from districts with excess capacity to those with inadequate resources; and districts whose operations are characterized by increasing returns to scale should be considered for future expansion to consolidate their efficiency.

This study provides evidence on the relationship between central bank reforms and inflation dynamics in a sample of 37 developing countries. We use panel structural break test and Granger non‐causality tests on annual inflation and the legal index of central bank independence (CBI), as a proxy of central bank reform, over 40 years period. The empirical results indicate a positive effect of central bank independence on inflation stabilization. Besides, we find that there exists bi-directional causality between central bank reforms and inflation. These findings suggest that central bank independence is beneficial in terms of sustained macroeconomic stabilization and should harness among developing countries. In particular, reforms should design to give central banks more autonomy in the conduct of monetary policy and financial sector regulation. JEL Classifications: E31, E58How to Cite:Anwar, C. J., & Nicholas, O. (2020). Causality Relationship Between Central Bank Reforms and Inflation: Evidence from Developing Countries. Signifikan: Jurnal Ilmu Ekonomi, Vol. 9(1), 15-30. doi: http://dx.doi.org/10.15408/sjie.v9i1.10955.