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Abstract

Uganda is essentially an agricultural country due to its geographical location, outstanding natural features and natural resources. Agricultural trade plays a huge role in its economy and international trade. Uganda is one of the world's largest coffee producers and exporters. The study examines the foreign trade competitiveness of Uganda's agriculture. It presents the agricultural economy of the East African country and the status and potential of its untapped agricultural trade. It also examines Uganda's main agricultural trade partners and the foreign trade competitiveness of the coffee product group using Balassa's comparative advantage indicators for the period between 1994 and 2017. Furthermore, using the gravity model of trade, we present the main factors driving Uganda's bilateral agricultural trade. The results show that Kenya and Sudan are the main export partners of Uganda, while coffee and fish are the most important export product groups. Balassa's comparative advantage indices show that seven products belonging to the main groups of coffee, tea, maté and spices had comparative advantage. Using the gravity model, the study reveals that Ugandan agricultural products are mainly exported to countries that are geographically close, speak similar official languages and usually have high GDP.

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