Masters Degree Dissertations

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Browsing Masters Degree Dissertations by Subject "Determinants"

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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    (Kyambogo University (Unpublished work), 2024-05) Mutale, Robert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    (Kyambogo University (Unpublished work), 2024-07) Kutosi, Demas Lukoye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.