| dc.description.abstract | This study examined the Economic Factors that influence the Performance of Agro-input Dealers
in Kampala Capital City, Uganda. The study objectives were: to determine the extent to which
interest rate affects performance of agro-input dealers in Kampala Capital City, Uganda; to
establish the extent to which inflation affects performance of agro-input dealers in Kampala
Capital City, Uganda and to determine the extent to which exchange rate affects performance of
agro-input dealers in Kampala Capital City, Uganda.
The study employed a cross sectional design incorporating both quantitative and qualitative
methods to data collection with a sample size of 36 respondents derived using Morgan and
Krejcie (1970) from a target population of 40 Agro-input dealers in Kampala capital City. Data
collected was first edited manually, coded then entered into SPSS version 17 for electronic
cleaning and data analysis. The objectives of the study were analyzed using the Factor Analysis.
From the results, interest rates, inflation and exchange rates were statistically significant in
explaining performance of Agro-input Dealers in Kampala Capital City. Interest rates and
performance of Agro-input Dealers were negatively correlated (-0.605) with p-value (0.007);
inflation and performance of Agro-input Dealers were negatively correlated (-0.730) with p
value (0.004) and exchange rate and performance of Agro-input Dealers were negatively
correlated (-0.701) with p-value (0.001).
The study concluded that interest rates, inflation and exchange rate are vital factors explaining
variations in performance of Agro-input Dealers. From the study, it is recommended that
government of Uganda through Bank of Uganda should lower and control the interest rates
charged on borrowed funds, continue targeting inflation to keep it in check and monitor the
exchange rates and if necessary intervene to stabilize it. | en_US |
