ABSTRACT

This research report set out to investigate the relationship between Foreign Direct Investment and Unemployment in Uganda (2004-2014), the study employed time series survey data since examined data for a short time ,its objectives were; to establish the trend of Foreign Direct Investment in Uganda(2004-2014), to establish the trend of Unemployment rate of Uganda(2004-2014) ,to investigate the relationship between Foreign Direct Investment and Unemployment rate in Uganda (2004-2014), the hypothesis of the study was there is no relationship between Foreign Direct Investment and Unemployment rate in Uganda, a time series analysis such as Correlation analysis, regression analysis mechanisms were used. The trend of Foreign Direct Investment has showed a cyclical fluctuation, meanwhile and Unemployment rate had a general increase respectively. Using the correlation, regression approach, there was a very weak negative correlation between Foreign Direct Investment and Unemployment rate (r=-0.098), there was no relationship between Foreign Direct Investment and Unemployment rate at 0.05 level cf significance, stationary was tested and found that both Foreign Direct Investment and Unemployment has trend by using ACF and PACF. In conclusion therefore Foreign Direct Investment has a general decrease and Employment rate has shown a general increase; therefore, there is no relationship between Foreign Direct Investment and Employment in Uganda.