Browsing by Author "Bbaale, Edward"

Now showing 1 - 5 of 5
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    Access to Credit and the Effect of Credit Constraints on the Performance of Manufacturing Firms in the East African Region: Micro Analysis
    (Micro analysis, 2013) Buyinza, Faisal; Bbaale, Edward
    The study set out to investigate the factors influencing manufacturing firms’ access to credit and the effect of credit constraints on firm performance in the East African Community (EAC) using the World Bank (2006) enterprise survey for 5 EAC countries. We employed simple probit, simple OLS, tobit, and a two-step probit models. Descriptively, the top five business constraints in order of severity include; electricity outages and costs, access to finance, high and volatile tax rates, corruption, and macroeconomic instability. The majority of firms within the EAC are credit constrained with only 37% of firms in the best performing sector (metal fabrications) having obtained a loan. Quantitatively, high performing firms, exporters, medium and large firms increase the probability of credit access. Findings indicate that having access to credit and a long loan duration increase firm performance, while increase in the annual interest rate reduces firm productivity. Governments in the region should tackle the business constraints rated as very severe. EAC governments should make credit access easier by lowering the annual interest rates and also negotiating for a longer pay back period for individuals in the business sector. Governments in the region should put specific attention on those sectors which are observed to have an extreme disadvantage in accessing finance.
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    Agricultural Productivity and Household Welfare in Uganda: Examining the Relevance of Agricultural Improvement Interventions
    (The Palgrave Handbook of Agricultural and Rural Development in Africa, 2020) Kilimani, Nicholas; Nnyanzi, John Bosco; Okumu, Ibrahim M.; Bbaale, Edward
    Agriculture in sub-Saharan Africa remains a strong candidate for driving growth, alleviating poverty, and enhancing food security (Asfaw et al. 2012). Improving the productivity, proftability, and sustainability of smallholder farming is therefore one critical pathway for improved welfare for the major- ity of the region’s population (World Bank 2008). What is vital to note is that achieving agricultural productivity growth will not be possible without devel- oping and disseminating yield-enhancing technologies since it is no longer feasible to meet the needs of the increasing population through the expansion of cultivable area (Asfaw et al. 2012). Agricultural research and technologi- cal improvements are considered as the vehicles through which agricultural productivity can be increased. A combination of those would result in income growth, asset accumulation, rural employment creation, and overall welfare improvement. In the absence of such innovations, poverty as well as meeting the demand for food will inevitably result in environmental and natural resource degradation as farmers encroach on forests and wetlands in search for fertile “virgin” land.
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    Internal innovations, foreign technology and productivity in Sub-Saharan Africa’s manufacturing
    (Research square, 2022) Bbaale, Edward; Kilimani, Nicholas; Okumu, Ibrahim Mike; Tumwebaze, Henry
    Internal firm innovations and external knowledge/technology transfer are key for spurring the growth of firms and economies. We investigate whether firms that engage in such innovations are more likely to be productive than others as well determine if external knowledge transfers may have an effect on labor productivity mediated by the existence of internal absorptive capacity (generated by human capital and R&D). Using the World Bank Enterprise Survey of 26 African countries and employing both OLS and 2SLS, we find that firms that engage in innovations experience more growth. Most fundamentally, importation of inputs alone in the absence of other innovations does not maximize firm productivity. Finally, firms with a higher absorptive capacity in addition to the other innovations enjoy higher efficiency gains from their imported inputs irrespective firm ownership and size. Government should pursue policies that enhance internal absorptive capacity so as to enable firms tap the global opportunities.
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    Micro-Analysis of Mother’s Education and Child Mortality: Evidence from Uganda
    (Journal of International development, 2012) Bbaale, Edward; Buyinza, Faisal
    We use maximum likelihood models to analyse the impact of mother's education on infant and child mortality in Uganda. The data were obtained from the Uganda Demographic and Health Survey 2006. Our results confirm the hypothesis that mother's education is fundamental in reducing infant and child mortality. This suggests that efforts to reduce child mortality need to target measures that aim to educate women. The government programme to extend free education at the secondary level is therefore a commendable effort that needs to be strengthened. This therefore needs to be embraced by all stakeholders to encourage girls to attain education beyond secondary level. Copyright © 2011 John Wiley & Sons, Ltd.
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    The Portrait of Uganda’s Informal Sector: What main Obstacles Do the Sector Face?
    (Cogent Economics & Finance, 2020) Mugoda, Salmon; Esaku, Stephen; Nakimu, Rose Kibuka; Bbaale, Edward
    In this paper, using primary data collected from business owners, we examine the nature and obstacles in the informal sector of Uganda. We find that education level matters in the selection of enterprises. The bulk of businesses, like eating kiosks, fish selling, shoe shining among others that require no specialized skill to operate were mainly run by primary school dropouts and those with no formal level of education. Furthermore, we find evidence of a strong entrepreneurial spirit among secondary school dropouts than at any other education level. Across all businesses surveyed, secondary school dropouts run a high number of informal enterprises. Evidence suggests that their motivation is driven by two key factors, namely, wanting to take advantage of an existing business opportunity and failure to find employment in the formal sector. The empirical results show that access to finance, crime, theft and disorder, electricity, water, taxes, burdensome inspections, and informal gifts are robust and significant obstacles to the operations of the informal sector in Uganda. Policies should focus on a regulatory framework that supports the sector to create secure livelihoods and generate employment opportunities for the unemployed rather than viewing the sector as a source of “illegality.” Improving access to finance, providing regular power and water supply, and improving the tax regime would mitigate the obstacles faced by informal businesses leading to possible formalization. Informal sector businesses should not be perceived as “illegal entities” but rather complementary effort by an increasingly enterprising population in the country.