International Journal of Social Science & Economic Research
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Title:
DYNAMIC EFFECTS OF FISCAL POLICY SHOCKS ON OUTPUT IN UGANDA

Authors:
Margaret Magumba, Tinatin Mumladze, Happiness Naumanga

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1Margaret Magumba, 2Tinatin Mumladze, 3Happiness Naumanga
1. Uganda Revenue Athorty, Research, Planning and Development
2. Ministry of Finance Georgia
3. Bank of Tanzania

MLA 8
Magumba, Margaret, et al. "DYNAMIC EFFECTS OF FISCAL POLICY SHOCKS ON OUTPUT IN UGANDA." Int. j. of Social Science and Economic Research, vol. 4, no. 2, Feb. 2019, pp. 1233-1255, ijsser.org/more2019.php?id=91. Accessed Feb. 2019.
APA
Magumba, M., Mumladze, T., & Naumanga, H. (2019, February). DYNAMIC EFFECTS OF FISCAL POLICY SHOCKS ON OUTPUT IN UGANDA. Int. j. of Social Science and Economic Research, 4(2), 1233-1255. Retrieved from ijsser.org/more2019.php?id=91
Chicago
Magumba, Margaret, Tinatin Mumladze, and Happiness Naumanga. "DYNAMIC EFFECTS OF FISCAL POLICY SHOCKS ON OUTPUT IN UGANDA." Int. j. of Social Science and Economic Research 4, no. 2 (February 2019), 1233-1255. Accessed February, 2019. ijsser.org/more2019.php?id=91.

References
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[4]. Burriel, Pablo, Francisco de Castro, Daniel Garrote, Esther Gordo , Joan Paredes, and Javier J. Perez. 2010.
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[6]. International Monetary Fund. 2017. Uganda 2017 Article IV. IMF Country Report No. 17/206, Washington, D.C.: International Monetary Fund.
[7]. Jooste, Charl, Guangling (Dave) Liu, and Ruthira Naraidoo. 2013. "Analysing the effect of fiscal policy shocks in the South African aconomy." Economic Research Southern Africa.
[8]. Kayizzi-Mugerwa, Steve . 2002. "Fiscal Policy, Growth and Poverty Reduction in Uganda." United Nations University.
[9]. Mahrous, Walaa. 2016. "Dynamic Impacts of Changes in Government Spending on Economic Growth in Kenya. A Structural VAR Analysis." Institute of Statistical Studies and Research.
[10]. Ministry of Finance, Planning and Economic Development. 2017. "Background to the Budget."
[11]. Ministry of Finance, Planning and Economic Development. 2016. National Budget Framework Paper FY 2017/18 - FY 2021/22. Ministry of Finance, Planning and Economic Development.
[12]. Ocran, Matthew Kofi. 2011. "Fiscal Policy and Economic Growth in South Africa." Journal of Economic Studies. Pricewaterhouse Coopers. 2018. "Uganda Economic Outlook 2018."

Abstract:
Several studies world over have indicated varying effects of fiscal policy on economic growth in different countries. In this paper, we sought to establish the dynamic effects of fiscal policy shocks on output in Uganda, using SVAR analysis. We assumed that the steady state effect of aggregate demand shocks on output and tax revenue in Uganda is zero and, the contemporaneous effect of fiscal policy shocks on government spending in Uganda is zero. Our results indicated that fiscal policy shocks have a positive and permanent effect on output in Uganda and, the same shocks are the major drivers of variance in Uganda's output. These results ratify Uganda's choice to use fiscal policy, mainly investment in infrastructure development, as a tool to achieve economic growth.