Masters Degree Dissertations

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Browsing Masters Degree Dissertations by Subject "Determinants"

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    Determinants of access to informal credit among households in Uganda
    (Kyambogo University (Unpublised work), 2024-07) Kyombo, Moses
    Uganda’s credit system is divided into two that is; informal credit and formal credit. Informal credit system happens to be the dominant one. Informal credit involves loans provided by informal financial institutions not under the control of government or bank of Uganda. This dissertation examines the determinants of access to informal credit among households in Uganda. A logit model was used to establish the extent to which independent variables could explain access to informal credit among households in Uganda. Uganda National House hold survey (UNHS) data (2019/2020) was used. The results revealed that informal credit was positively and significantly influenced by; region, education, income, sector of employment and marital status. However, access to informal credit in Uganda was negatively and significantly influenced by residence as well as gender of the household head. The key policy recommendations; evidence showed that education had a positive association with access to informal credit therefore, for better access and utilization of informal credit, government should widen and strengthen its financial literacy programs and preferably translate financial literacy materials to the local languages for better understanding. Government can as well use community based and multimedia platforms like radios, newspapers as well as televisions for promoting financial literacy. On the sector of employment, evidence indicated that informal credit was accessed mostly by people employed in the production sector. In Uganda the production sector is composed of mainly small and medium enterprises (SMEs) Given that SMEs play an important role in production and generation of employment, government should provide tailor made credit specifically for SMEs to boost production. Government can also promote value addition in the small and medium enterprises so that they can generate more income to pay back the credit. Additionally, evidence from the results also revealed that informal credit was accessed more by women. The policy recommendation is that government should widen and strengthen gender friendly policies and programs in support of informal financial sector directed to women financial needs in the economy. Concerning variable income, findings indicated that income had a positive association with access to informal credit. The policy recommendation therefore is that government should strengthen its socio-economic empowerment and livelihood programs to enhance household incomes so that households are able to invest and pay back the loans.
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    Determinants of balance of payments among countries in eastern Africa
    (Kyambogo University (Unpublished work), 2024-05) Mutale, Robert
    Balance of Payments plays a crucial role as an economic indicator, giving valuable perspectives on economic exchanges of a nation on the global stage. Despite its significance, numerous African nations consistently grapple with deficits in their BOP, lacking clear explanations for such shortfalls. This dissertation employs fixed effects and random effects estimations to investigate the determinants of BOP, focusing specifically on Eastern African countries. Drawing upon data from World Bank development indicators spanning from 1991 to 2021, the study utilizes various econometric techniques to discern underlying trends. Key findings reveal that foreign direct investments exert a positive influence on BOP, while money supply, gross domestic product and trade openness exhibit negative impacts. Specifically, foreign direct investments emerge as statistically significant drivers, suggesting the need for policies that encourage and facilitate their inflow. In light of these results, fostering an environment conducive to foreign direct investment through incentives, infrastructure investment, and the establishment of favorable legal frameworks are recommended. Additionally, certain variables were found to have negligible impact on BOP, underscoring the importance of focusing efforts on factors proven to be statistically significant.
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    Determinants of interest rate spread in Uganda’s banking sector
    (Kyambogo University (Unpublished work), 2024-07) Kutosi, Demas Lukoye
    Interest rate spreads are one of the main indicators for banking sector efficiency and financial sector development. Interest rate margins or spread are a key determinant of financial intermediation and access as well as economic growth. Uganda has one of the highest interest rate spreads in Sub-Saharan Africa. However, there is limited understanding of the underlying causes of bank spreads in Uganda. A puzzling question in banking and finance literature that endures is what are the key drivers of high bank spreads in Uganda? This study examined the sources of interest rate spreads in Uganda. It analyzed the bank, non-consumer and macroeconomic factors influencing bank spread in Uganda, spanning the period from Quarter 4 2008 to Quarter 4 2022 using ARDL modelling approach. The findings indicate liquidity risk and bank rate have a significant positive long run influence on spread whereas credit risk, Return on Assets, Operational Efficiency, GDP growth and Financial Sector Development had a significant negative long run impact on spread. However, Reserve Requirement and Inflation had an insignificant impact on spread in Uganda’s banking sector. The study suggests that commercial banks and policy makers in Uganda should consider the internal, industry and macroeconomic environment in coming up with measures to enhance the sector’s efficiency. This research did not include all the factors influencing interest rate spread such as leverage ratio, market concentration, public sector domestic borrowing thus future studies are recommended to examine their effect on interest rate spread.