Is tourism a tool for poverty reduction in a developing country a study on Uganda

Wakyereza Ronald K. S., . and Kuledran Nada, . and Ihalanayake Ranjith, . Is tourism a tool for poverty reduction in a developing country a study on Uganda. pp. 162-174. ISSN 2672-7226

Tourism sector is widely recognized for its role in poverty reduction in many developing nations including those in Sub-Saharan Africa. Some of these nations (i.e. Botswana) have graduated from least developed country (LDC) status contribute by the tourism sector that boost the of tourism to the economy of these countries. In Uganda although tourism is considered as a leading export commodity for the nation the empirical work in relation to tourisms role in poverty reduction is limited. Therefore this study is aimed at conducting an empirical investigation to establish whether tourism can reduce poverty in Uganda. The study uses time series data for the period of 1985 - 2014 and employs VAR VECM Granger causality tests. The study also forecasts tourisms role for poverty reduction using impulse response and variance decomposition analyses. Findings indicate that tourism does cause poverty reduction in Uganda. Meanwhile impulse response and variance decomposition analysis indicate that the impact of tourism on poverty reduction in Uganda is high in the short run but declines in the long run.

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Abstract

Tourism sector is widely recognized for its role in poverty reduction in many developing nations including those in Sub-Saharan Africa. Some of these nations (i.e. Botswana) have graduated from least developed country (LDC) status contribute by the tourism sector that boost the of tourism to the economy of these countries. In Uganda although tourism is considered as a leading export commodity for the nation the empirical work in relation to tourisms role in poverty reduction is limited. Therefore this study is aimed at conducting an empirical investigation to establish whether tourism can reduce poverty in Uganda. The study uses time series data for the period of 1985 - 2014 and employs VAR VECM Granger causality tests. The study also forecasts tourisms role for poverty reduction using impulse response and variance decomposition analyses. Findings indicate that tourism does cause poverty reduction in Uganda. Meanwhile impulse response and variance decomposition analysis indicate that the impact of tourism on poverty reduction in Uganda is high in the short run but declines in the long run.

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Item Type:	Article
AGROVOC Term:	Tourism
AGROVOC Term:	Uganda
AGROVOC Term:	Developing countries
AGROVOC Term:	Poverty
AGROVOC Term:	Econometric models
AGROVOC Term:	Data analysis
AGROVOC Term:	Economic development
Depositing User:	Mr. AFANDI ABDUL MALEK
Last Modified:	24 Apr 2025 00:54
URI:	http://webagris.upm.edu.my/id/eprint/9036

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