ABSTRACT

The study was set to investigate the relationship between GDP and exports earning in Uganda from 20OO~2O11. It was guided by three research objectives which included assessing the trend of earnings, annual gross domestic product and establishing the relationship between the two variables. The study adopted a longitudinal research design involving quantitative approach in data collection. A time series analysis was adopted and the use of quantitative techniques to analyze secondary data scientifically from world economic outlook international monetary fund data sheets among others, The study findings showed that exports earnings from cotton; fish and GDP have each been increasing due to high quality of fish in the international markets and increase in production respectively, though with some fluctuations, while exports earnings from coffee have been unpredictable~ This could be due to susceptibility of coffee to natural disasters like floods, drought and other factors such as oil prices, security and international policies affecting exports. A simple linear regression analysis shows a positive relationship between cotton, coffee, fish with the values of (R2=O~857, 0.241, 0.394) and GDP respectively indicating a direct relationship between GDP and exports earning. Based on the findings, the researcher recommends that government and Policymakers should aim at promoting more quality exports, ensure conducive environment for growth of exports and engage in export promoting strategies, modernization of agriculture and encouraging industrialization,