IDEAS home Printed from https://ideas.repec.org/a/rss/jnljee/v1i2p1.html
   My bibliography  Save this article

Sectoral Effects of Monetary Policy in Uganda

Author

Listed:
  • Dorothy Nampewo
  • Ezra Munyambonera and Musa Mayanja Lwanga

Abstract

The paper investigates the sectoral effects of monetary policy in Uganda over the period 1999 to 2011. Sectors which are the key drivers of Uganda‟s GDP growth are analysed. These include agriculture, manufacturing and service sectors. The analysis based on pairwise granger causality test and estimating a recursive VAR reveals that the exchange rate channel is the most effective monetary policy transmission channel to all the three sectors studied, while the interest rates and bank credit channels remain relatively weak channels of monetary policy especially within the manufacturing sector. Furthermore, a positive shock in exchange rates results into growth of agriculture and service sectors‟ GDP. The contrast is realised in the manufacturing sector. Thus, based on these findings, empasis should be put on maintaining a stable exchange rate that favors both exports and imports to ensure growth of both the manufacturing sector which mainly relys on imported-inputs and the agricultural and services sectors‟ exports.

Suggested Citation

  • Dorothy Nampewo & Ezra Munyambonera and Musa Mayanja Lwanga, 2013. "Sectoral Effects of Monetary Policy in Uganda," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 1(2), pages 43-58.
    • Handle: RePEc:rss:jnljee:v1i2p1
    as

    Download full text from publisher

    File URL: http://rassweb.org/admin/pages/ResearchPapers/JEE-Issue2-Paper%201_1496871165.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ikechukwu Kelikume, 2015. "Interest Rate And Credit Sensitivity Of Sectoral Output In Nigeria," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 9(4), pages 103-114.
    2. Kenny S, Victoria, 2019. "The effect of real shocks on business cycle fluctuations. A Bayesian panel vector autoregressive approach," MPRA Paper 95716, University Library of Munich, Germany.
    3. Charaf Eddine Moussir & Abdellatif Chatri, 2017. "Sectoral Effects Of Monetary Policy: Evidence From Morocco," Post-Print hal-01449475, HAL.
    4. Charaf-Eddine Moussir, 2017. "Effets sectoriels de la politique monétaire et activité économique: cas du Maroc," Post-Print hal-01449490, HAL.
    5. Sawuya Nakijoba, 2018. "Determinants of Nominal Effective Exchange Rate in Uganda (2000-2017): A Vecm Approach," Applied Economics and Finance, Redfame publishing, vol. 5(5), pages 45-58, September.
    6. Ogbuabor, Jonathan E. & Anthony-Orji, Onyinye I. & Manasseh, Charles O. & Orji, Anthony, 2020. "A Disaggregated Analysis Of Monetary Policy Effects On The Agricultural Sector In Nigeria," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 14(3-4), December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rss:jnljee:v1i2p1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Danish Khalil (email available below). General contact details of provider: http://www.rassweb.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.