Determinants of FDI and their Impact on Economic Growth in Uganda.

Uganda, in an attempt to accelerate growth and development, has been encouraging foreign direct investment (FDI) through privatization programmes and generous incentive packages such as tax holidays and exemptions. However, the Ugandan experience shows that to attract FDI, macroeconomic and political stability and policy consistency are much more important than such incentive schemes. The paper discusses infrastructure and institutional bottlenecks that act as deterrents to FDI. The paper uses time series data to investigate the FDI-growth linkage. The empirical results indicate that FDI has a positive impact on GDP growth in Uganda. [ABSTRACT FROM AUTHOR]