TABLE OF CONTENT
DECLARATION ii
APPROVAL iii
ACKNOWLEDGEMENT iv
TABLE OF’ CONTENT v
LIST OF TABLES vii
LIST OF FIGURES viii
LIST OF ACRONYMS ix
ABSTRACT x
CHAPTER ONE 1
INTRODUCTION 1
I .0 Introduction
.1 Background of the Study
1 .2 Problem Statement 4
1.3 General Objective of the Study 5
1 .4 Specific Objectives 5
1 .5 Research Hypothesis 5
1 .6 Scope of the Study 5
1.6.1 Content Scope 5
1.6.2 Time Scope 5
1 .6.3 Geographical Scope 5
1.7 Significance of the Study 6
ChAPTER TWO 7
LITERATURE REVIEW 7
2.0 Introduction 7
2.1 Theoretical Review 7
2.2 Conceptual Frame Work 8
2.3 Related Literature 9
2.3.1 Relationship between Household Income and Expenditure 9
2.3.2 The Household Expenditure Pattern 10
2.3.3 The Household Income Trend 12
CHAPTER THREE 14
RESEARCH METHODOLOGY 14
3.0 Introduction 14
V
3.1 Research Desig~~ . 14
3.2 Study Population 14
3.3 Sample Size 14
3.4 Data Type and Source 14
3.5 Data Processing and Analysis 14
3.6 Model Specification 15
ChAPTER FOUR 17
DATA FINDINGS AND PRESENTATION 17
4.0 Introduction 17
4.1 Household Expenditure 17
4.2 Household Income 18
4.3 Household Income and Expenditure 19
4.3.1 Normality Test Results 19
4.3.2 Autocorrelation Test Results 19
4.3.3 Unit Root Test Results 20
4.3.4 Correlation Analysis 21
4.3.5 Regression Analysis 21
4.3.6 Lag Selection Criterion 22
4.3.7 Granger Causality Wald test 22
ChAPTER FIVE 24
SUMMARY, CONCLUSION AND RECOMMENDATION 24
5.0 Introduction 24
5.1 Summary of Findings 24
5.2 Conclusion 26
5.3 Recommendation 26
REFERENCES 27
APPENDENCIES 30
APPENDIX A: HOUSEHOLD INCOME AND EXPENDITURE DATA 30
APPENDIX B: OUTPUT OF THE DATA 31
ABSTRACT The main purpose of this study was to ascertain the relationship between Household Income and Expendituire in Uganda. The specific objectives of this sturdy were to establish the Household Income Trend, establish the Household Expenditure Pattern. The study made use of time series data from statistical abstracts - Uganda Bureau of Statistcs (1993-2015). In line with Expenditure, figure 2 revealed that Household Expenditure on Food, Drinks, Rent, Fuel and energy was the highest among other Household Expenditure Patterns with about 5 1.8196% of the Household per capita Expenditure on Food, Drinks, Rent, Fuel and energy. This was closely followed by Household Expenditure on clothing and footwear by 6.37826 %. Apart from these two Expenditure Patterns that showed a major Expenditure for the Households, other Expenditure Patterns were averagely within 5 %. In line with Household Income, figure 3 revealed that over a number of years there have been variations in income among Households in Uganda. On aggregate income was highest among other households with about 11.523% in 1995. This was closely followed by income in 2006 by 11 .49%. Apart from these two income levels that showed high income for the Households, other Household Income levels were averagely low. In line with the relationship between Household Income and Expenditure, the results provided evidence that Household Income induces Household Expenditure positively and signifcantly by 65.8% in Uganda. The results of the study also revealed that there was causality flowing from Income to Expenditure and no causaulity flowing from Expenditure to 1ncoi~ne. Basing on the findings of the study its recommended that government should encourage Households to save part of their income earned inorder to cater for the unforeseen cirmustances which may lower down their standards of living.
