The Relationship Between Foreign Direct Investment Oriented Economic Growth in Uganda: An Empirical Study Based on VAR Model

The purpose of this paper is to investigate the relationship between Foreign Direct Investment (FDI) and Economic growth as measured by Gross Domestic Product (GDP) over Uganda, from 1980-2018. Vector Autoregressive Model (VAR) Granger Causality test were used. results show thatlag 1 optimal lag hence bivariate VAR (1) model was GDP FDI exhibits long-term equilibrium since two-time series are cointegrated in long run. causality indicates that there exists a unilateral GDP, causes not vice versa. Understanding these links can help future forecasting Uganda's economic growth.