Inter-sectoral linkages and economic growth in Uganda: A SAM-based multiplier model analysis

Sectors are the engines of economic growth in any economy making inter-sectoral linkages most significant target for development practitioners and policymakers. This study examines ascertains magnitude production consumption Uganda’s economy. Secondary data from 2009/10 2016/17 Uganda Social Accounting Matrices (SAMs) is analyzed based on multiplier model. A buttress robust checks including a Vector Error Correction Model (VECM) adopted validation purposes using longer time series 1980 to 2020. The found that one million income injection across sectors has larger effect (in terms output, GDP, income, consumption) than service sector followed by agriculture then industrial sector. Despite higher effects services sector, its contribution employment limited. large amount labor trapped low-paying subsistence agricultural Therefore, government should implement policies supplement rapid with strategies attract utilize excess Results also indicate prematurely emerged as driver before was fully industrialized. Government formulate catch-up rebalance agenda. To accomplish this, proportionately more funding be allocated Lastly, sectoral projections forecasts incorporated into National Development Plans, Budgeting Frameworks, forecasts.