The Effects of Investment Climate on Manufacturing Firms’ Growth in Uganda

"This study investigated the effects of investment climate factors on manufacturing firms’ growth in Uganda using panel data. The low and stagnant levels of manufacturing sector share in Gross Domestic Product in most African countries has been widely recognized to be an important policy problem. This study adopted Gibrats Law of Proportionate Effect (LPE) and Learning model due to Jovanovic with some modifications to analyze investment climate factors that determine firm growth in Uganda. Results show that firm size, firm age, and average education are the main determinants of firm growth in a sample of Ugandan manufacturing firms. These results have important policy prescriptions to increase firm growth."