Agriculture
The Effect of Commercial Banks’ Agricultural Credit on Agricultural growth in Uganda
Over the past one decade, commercial banks in Uganda have progressively lent credit to agriculture. However, the increasing commercial bank’s agricultural credit disbursements have not translated into commensurate increase in agricultural GDP growth.
Upon this backdrop, the study sought to examine the short run and long run impact of the commercial banks’ credit on agricultural sector growth. Using quarterly time series data sourced from bank of Uganda and Uganda bureau of statistics over the sample period of 2008Q3 -2018Q4, the study applied the Autoregressive Distributed Lag (ARDL) approach to examine that the short run and long term relationship between commercial banks’ credit and Uganda’s agricultural GDP performance.In the long run, we find credit to have significant positive impact on agricultural output.
This paper was first published in the African Journal of Economic Review. https://ageconsearch.umn.edu/record/301056/?ln=en
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- Published Jan 22, 2020