Trade Liberalization and Disaggregated Import Demand in Uganda

Samuel, Gaalya Micah

doi:10.4236/me.2015.63030

Cited by 3 publications

(6 citation statements)

References 27 publications

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“…However, it is recommended that, to address the negative impact of investment spending on capital good, the government should design fiscal policies in a manner that encourages import substitution, boosts domestic production capacity, and discourages consumption-oriented imports. The negative effect of trade policy is inconsistent with theory; however, it is supported by findings in previous studies, such as Narayan and Narayan (2005) and Samuel (2015).…”

Section: Short-run and Long-run Resultscontrasting

confidence: 59%

Examining the determinants of import demand in Tanzania: An ARDL approach

Vacu

Odhiambo

2022

IER

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This study estimates the determinants of import demand in Tanzania using time-series data for the period from 1985 to 2015. Research Design & Methods:The study applied the ARDL approach on Tanzania's time-series data to examine the key drivers of import demand. The study used both aggregate import demand model (i.e., Model 1) and disaggregated import demand models, i.e., Model 2 (for consumer goods), Model 3 (for intermediate goods) and Model 4 (for capital goods) to examine this linkage. Findings: The study found that in Model 1, aggregate imports in Tanzania are positively influenced by investment and exports, and negatively determined by trade policy. In Model 2, it was found that imports for consumer goods are positively influenced by consumer spending and foreign reserves, but negatively influenced by trade policy. In Model 3, imports for intermediate goods were found to be positively influenced by exports in the long run. Finally, in Model 4, the study found imports for capital goods to be positively influenced by exports (in the short-and long-run), but negatively influenced by investment (in the short-run). Implications & Recommendations:The study recommends that policymakers in Tanzania should strengthen their macroeconomic policies to ensure that their imports are not consumption-based and have an enhancing effect on the country's economic activities. Contribution & Value Added:The study contributes to the empirical body of knowledge by incorporating various components of disaggregated import demand. This is an aspect that is scant in the existing literature as most previous studies only focused on aggregate import demand.

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Section: Short-run and Long-run Resultscontrasting

confidence: 59%

Examining the determinants of import demand in Tanzania: An ARDL approach

Vacu

Odhiambo

2022

IER

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“…Domestically, NERICA yields at farmer fields is found to be 56 percent of that at the station (2.2 tones per hectare as opposed to 5 tonnes per hectare envisaged by WARDA [9] The production estimates provided by UBOS [6] were even lower; estimated at 1.36 per hectare. Yet, [10] results showed that rice farmers growing irrigated rice were not reaching their potential mainly due to limited access to extension services and credit.…”

Section: Introductionmentioning

confidence: 82%

“…Since the crop is that important, especially in urban areas especially among the youth, and government institutions in the country a strategy plan was drawn up in 2009 to redirect the farmer's efforts to benefit consumers as well as the nation at large. Prior to the formulation of this strategy, a number of studies carried out in the country established that the crop competed well within the farming system [8] [5]; had higher yields than those in Asia Kijima et al, [9]; was profitable [10]) and was facing increasing demand due to changes in tastes, especially in urban areas [11]. However, increases in domestic production is currently faced by many constraints among which are post harvesting practices leading to physical losses and poor milling facilities [12] and many more constraints highlighted in [7].…”

Section: Introductionmentioning

confidence: 99%

“…Yet, [10] results showed that rice farmers growing irrigated rice were not reaching their potential mainly due to limited access to extension services and credit. For farmers growing the NERICA variety of rice, the main factors affecting their yields were water availability and limited experience in rice growing [9]. Assuming that these problems are addressed could rice farmers increase production to meet the existing demand?…”

Section: Introductionmentioning

confidence: 99%

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Determinants of import demand of rice in Uganda

2017

IJAPSA

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Rice has been singled out as one of the crops that play an important role as both food and a cash crop in Uganda. Its importance has become more critical due to increasing demand. The increased demand has created a gap in domestic supply which has to be covered through imports. This study analyses determinants of import demand for rice in Uganda using econometric methods. Population, domestic rice production, own price and own consumption were found to be significant and therefore influencing rice imports in Uganda. Thus there is a need to increase supply through supporting farmers to increase domestic rice production to stabilize prices, If the country is to be self sufficient in rice as a way of saving foreign exchange, it would have to control its high population growth rate or increase domestic production through adopting high yield increasing technologies.

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“…The latter category of studies is usually based in countries whereby imports are dominated by intermediate and capital goods required for economic development. Uganda is an example from Africa in which aggregate imports primarily consist of capital and intermediate goods that mainly serve in production for export purposes (Samuel, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Dynamic Estimation of a Traditional Import Demand Function for Botswana

Malefane

2022

Global Journal of Emerging Market Economies

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This article estimates the import demand function for Botswana, which is rated among the fastest-growing countries in Sub-Saharan Africa. Using the autoregressive distributed lag (ARDL) approach to cointegration, the study finds that Botswana’s import demand is inelastic to the changes in import prices, both in the short run and in the long run, which resembles the import demand behavior in other fast-growing economies. The inelastic response of the import demand to import price is not surprising for a country that mainly imports diamonds, fuel, and machinery, all essential items for export production and economic development. The study further confirms that structural instabilities have a significant negative impact on Botswana’s import demand, which is an element that the policymakers must pay attention to. Considering the recent developments in the African continent, which include the recent ratification of the African Continental Free Trade Area (AfCFTA), this study suggests that policymakers in Botswana should revisit the country’s import policy and determine how Botswana’s imports can be positioned in a way that could benefit the sought-after intra-African trade.

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Trade Liberalization and Disaggregated Import Demand in Uganda

Cited by 3 publications

References 27 publications

Examining the determinants of import demand in Tanzania: An ARDL approach

Examining the determinants of import demand in Tanzania: An ARDL approach

Determinants of import demand of rice in Uganda

Dynamic Estimation of a Traditional Import Demand Function for Botswana

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