Impact of Infrastructural Development on Economic Growth: A Study from Uganda

Abstract

The study used quarterly time series data from the World Bank's World Development Indicators (2022) and the African Development Bank for African Infrastructure Development Index (AIDI) data to examine the impact of infrastructure development on economic growth in Uganda for the period between 2005 and 2020. The findings from the study indicated a positive relationship between AIDI and Economic growth in Uganda. Overall improvement in AIDI considering the four infrastructure components creates an enabling environment for other factors of production to operate effectively  and efficiently hence spurring economic growth in the country.The results suggest that in order for Uganda to fully benefit from its infrastructure investment in the short and long terms, investments in infrastructure should take into account all four infrastructure components that make up the AIDI, namely transportation, electricity, information and communications technology, and water and sanitation.