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IN AMURU DISTRICT
(A Case study of Amuru sub-county)
By
Omony Nobert
August 2011
Acknowledgement
I would like to acknowledge the support rendered to me by Prof. J.B Odoki, Hon Aciro Concy
and Mr J.B Asiimwe. Thanks to my parents Mr and Mrs Dera and the family members, Lastly to
all lecturers of the institute of statistics and applied economics.
LRA
MoFPED
UBOS
UNHS
UPE
USAID
USE
ii
Abstract
This research analyse household expenditure patterns in Amuru district. It also aim at
determining the expenditure patterns of the various households with respect to the demographic
and social characteristics of the household heads such as gender, education level and marital
status. and it also take in to consideration expenditure patterns of selected items like education,
food stuff and among others.
And the objectives are to determine if there are variations in the expenditure patterns among the
households. Also to determine if the expenditure patterns depends on the demographic and social
characteristics of the household heads.
The methodology used in this research provides how the study is carried out which entails
among others data collection procedures, processing and ways of analysis and presentations
The main source of data is primary data, collected from the household heads in the villages of the
sub county.
The key findings are not dependant on the social and demographic characteristics of the
household heads and the characteristics of the household heads didnt affect much the
households expenditure pattern.
Conclusions and recommendations shall give key findings and provide the ways forward of
solving and overcoming the short falls in the expenditure patterns.
iii
Table of contents
Declaration ........................................................................................................................................
Acknowledgement ........................................................................................................................... i
Abbreviations and Acronyms ......................................................................................................... ii
Abstract .......................................................................................................................................... iii
Chapter 1 ......................................................................................................................................... 1
Introduction ..................................................................................................................................... 1
1.1
1.2
1.3
1.4
1.5
Hypotheses ........................................................................................................................... 5
1.6
Chapter 2 ......................................................................................................................................... 7
Review of Literature ....................................................................................................................... 7
2.1
Introduction .......................................................................................................................... 7
2.2
2.3
2.4
2.5
Chapter 3 ....................................................................................................................................... 11
Research Methodology ................................................................................................................. 11
3.1
Introduction ........................................................................................................................ 11
3.2
3.3
Chapter 4 ....................................................................................................................................... 18
Results of the Analysis and Findings ............................................................................................ 18
4.0 Introduction ............................................................................................................................. 18
4.1: Background Characteristics of the Respondents ................................................................... 18
4.2 Dependence of Household Expenditure on Demographic Characteristics of the Household
Heads............................................................................................................................................. 20
4.3 Economic Impact of Characteristics of Household Heads on Expenditure Pattern ................ 20
vi
List of tables
Table 3.1: Sample Selection and Distribution from the two Parishes in Amuru Sub-County
Table 4.1: Percent and Frequency Distribution of the Household Heads by Social Demographic
Characteristics
List of figures
Figure 3.1: Flow diagram illustrating the overall research methodology
Figure 4.1: Expenditure Patterns on selected Items
List of appendices
Appendix A: The questionnaire used for the survey
Appendix B: Demographic and social characteristics of the household heads
Appendix C: Average expenditure by social demographic and economic characteristics of the
household heads
vii
viii
Chapter 1
Introduction
The Uganda Bureau of Statistics (UBOS), formerly the statistics department under Ministry of
Finance, Planning and Economic Development (MoFED) has conducted a number of surveys
since 1989. These include the Uganda National Household Surveys of 1999/2000 and 2005/2006
which were aimed to provide data on a system of socio-economic indicators against which to
monitor development. Data on income and expenditure shows that monthly expenditure has
normally increased by 40% between 1997/1998 and 2000. However, accounted expenditure on
food, drink and tobacco had fallen from 59% to 51% and 50% of the poorest households
contribute only 20% of the total household expenditure as the result of low income which cannot
be spent on some commodities.
In education, the establishment of Universal Primary Education (UPE) in 1997 has led to
increase in primary school enrolment from around 3 million in 1997 to 7.5 million pupils in 2005
and 2006. This target was to improve on the literacy of the population where every family is
entitled to free education of up to 4 children in a family and the introduction of Universal
Secondary Education (USE) in the year 2007. This has however reduced household expenditure
on education. Although that was good, parents still spend a lot of money on buying scholastic
materials.
household to another. The difference in the expenditure patterns is expected due to some factors
related to the household (e.g. size or the number of people in the household) and the
characteristics of household heads such as age, sex, level of education, marital status.
This research investigates household expenditure pattern in Amuru District, which is located in
Acholi Sub-region in Northern Uganda. This part of Uganda experienced a brutal war that raged
between Uganda Government and the Lords Resistance Army (LRA) for over twenty years. The
war caused internal displacement of affected persons and disrupted economic activities of most
households in the district. This led to considerable changes in households consumption and
expenditure patterns. Thus, in addition to the factors that influence households expenditure
pattern given in the paragraph above, this research indirectly investigated the impact of factors
such as war and insecurity on household expenditure pattern.
1.4.1 Aim
The aim of this study is to determine the consumption expenditure patterns of the households in
Amuru District with respect to selected major livelihood items including food, medical services
and transport.
1.4.2 Objectives
The main objectives of the study are as follows:
1. To determine the variability in expenditure patterns among the various households.
2. To find out if the expenditure patterns of the different households depend on the
status of the household heads and other characteristics such as sex and age.
3. To determine if expenditure of a household depends on the size of the household
defined in terms of the number of people in the household.
4. To determine which livelihood item takes the majority of the households total
expenditure.
5. To determine if the total expenditure of the households depend on the source of
income of the household heads
1.5 Hypotheses
The key hypotheses used in this study are summarized as follows:
1)
2)
Household expenditures do not depend on the sex and age of the household head.
3)
Household expenditure patterns do not depend on the level of education of the household
head and the source of income of the household heads.
4)
A households total expenditure does not depend on the marital status of the household
head.
5)
Household total expenditure does not depend on the size of the household.
Chapter 3: Outlines the research methodology used and describes the field study, which includes
research design, study scope, source of data and method of data collection, sample size, survey
and sampling design, research instruments, data entry and analysis to achieve the objectives of
the study, mathematical equation and description of the variables.
Chapter 4: Provides analysis results and findings on social and demographic characteristics as
well as on various selected items like education, health, food, energy and transport.
Chapter 5: Presents the conclusions and recommendations of the study.
Chapter 2
Review of Literature
2.1 Introduction
This chapter reviews previous studies on the expenditure patterns and ways of households
spending conducted by various organizations and individuals in Uganda over the past decade. It
presents the findings from past studies on income level, consumption expenditure patterns on
health, travel, energy, education and food items.
expenditure on food and non alcoholic beverages dominated Ugandan household expenditure
with over 40% of total consumption expenditure going on this item. One in five
Ugandan
shillings was spent on housing whereas transport accounted for 6% of total household
consumption expenditure. At the other end of the spectrum, they spend close to 0% on recreation
and culture.
and gas, 4.4% on biomass and 2% of household expenditure is on transport and 29% on
purchased food.
10
Chapter 3
Research Methodology
3.1 Introduction
This chapter describes the research methodology adopted for this study. The procedure followed
reflects the aim and objectives of the study as defined in Section 1.4. The chapter provides the
methods and techniques used for the research design, sampling design, field surveys, data
collection and processing.
Start
Definition of problem, aim and objectives
Review of relevant literature to the study
Determination of data sources and study area
Sampling and Design of field study
Data collection and processing
Data analysis and presentation of results
Results of the analysis and findings
Conclusions and recommendations
End
11
Chapter 1 dealt with definition of research problem, aim and objectives and chapter 2 presented
the literature review.
Amuru District was established by the Ugandan Parliament in 2006. The district was part of
Gulu in Acholi sub- region northern Uganda, Acholi is the main ethnic group living in the
district and they speak acholi as their local language. The population of the district is about
242,300 with most of the population being rural of over 95%. The district population is growing
at an estimated annual rate of 3.5%., the district has four (4) sub counties ( i.e pabbo, kilak,
Amuru and Atiak). Amuru District is bordered by Adjumani District to the north, Southern
Sudan and Lamwo District to the northeast, Gulu District to the east, Nwoya District to the
south, Nebbi District to the southwest and Arua District to the west. Amuru sub-county has an
estimated population of about 35,134.The major economic activities being Subsistence
agriculture as the backbone of the district economy, employing 98% of the population. Arable
land, which makes up about 90% of the total land area in the district, is very fertile. However,
during the last twenty (20) years, less than 1% of the land was utilized for agriculture on account
of insecurity caused by the LRA. With the return of security to northern Uganda in 2006/2007,
the situation in the district is expected to improve. The main source of data was the household
heads in the district that provided the data for this study.
12
= (z2p*q)/d2
.(3.1)
= (1.962*0.5*0.5)/(0.112)
= 80
Where
P and q
d
The value of sample size n is computed to be 80; therefore 80 households were selected
randomly from the villages in the two parishes in Amuru Sub-County.
The survey used the face-to-face interview method. The two parishes of sub- County (Toro and
Pagak) are the domains of the survey. Each of the parishes was divided into 2 strata/villages.
Each stratum was defined by their geographical location, accessibility and economic activities of
the households such as farming and cultivation, local brewing, brick laying among others as their
source of income.
Within each stratum a sample was selected independently. First, enumeration villages were
drawn from each stratum using Proportion Probability to Size (PPS) sampling. Thus, the larger
the enumeration village size, the higher its probability of selection. Updated household lists for
the selected enumeration villages were produced. From each selected enumeration village of
Aywee, Olwal, lokaolik and Laboongogali.
13
80 households were systematically selected using a random start sub county wide for survey.
One enumerator is assigned to two villages. About 2.8% sample was selected for the survey.
However, the final responding sample size was equal to 80
households sub countywide which were considered to be sufficiently homogenous. The table
below shows the original and final sample representation.
Table 3.1; Sample Selection and Distribution from the two Parishes in Amuru Sub-County
Parish
Village
Toro
Aywee
800
26
0.033
Olwal
630
14
0.022
Laboongogali
980
30
0.031
Lokaolik
430
10
0.023
2840
80
0.028
Pagak
Estimated
Population
Total
Sample
Household
Sample
Fraction
household heads of different age groups, gender, occupation and qualifications as given in
appendix B.
Households were visited from their respective local residence and interviewed while those who
were able to read and write filled the questionnaires by themselves, all necessary information for
the study was included in the questionnaire by the household heads.
The data and information given included both quantitative ( i.e age, house size and expenditure
figures) and qualitative data sets
In this research the following tools were vital papers, pens, pencils, rubber, laptop, an umbrella,
ruler, clip board, raincoat in case of heavy down pour, a bag for keeping all the necessary tools
and a dairy. The data collected from the various household heads were processed in to suitable
formats
15
.. (3.2)
1.
Dependent Variable
In this analysis the total household expenditure on every item (Y) is the dependent variable.
Where expenditures of the different households are captured in Uganda shillings using a recall
period, per month, other periods like per term, per semester, weekly and daily.
16
2.
Independent Variables
The independent variables in this case are household size that is the number of people living
under one roof, the sex of the person recognized by the rest of the members of the household to
be the head and often he or she is responsible for financial support and welfare of the members,
education level of the head which is also believed to affect the total household expenditure,
marital status of the head and age of the household head.
17
Chapter 4
Results of the Analysis and Findings
4.0 Introduction
This section present the results of analysis of the responses in line with their expenditure patterns
and demographic characteristics like age of household heads, household size, sex of the
household heads, marital status and level of education of the household heads of the sampled
population and interpretations.
18
Table 4.1; Percent and Frequency Distribution of the Household Heads by Social
Demographic Characteristics
Variables
Sex
Frequency
Percentage
Male
Female
Total
Marital Status
Married
Single
Separated
60
20
80
75.0
25.0
100
58
9
5
72.50
11.25
6.25
Divorced
2.50
Widow
Total
Highest level of Education
6
80
7.50
100
None
Primary
Secondary
7
42
21
8.75
52.50
26.25
Collage
8.75
University
Total
Source of Income
Wages and salaries
Cultivation and farming
3
80
3.75
100
21
36
26.25
45.0
Trading
13
16.25
10
80
12.50
100
Other
Total
Source: This study (2011)
The table above shows that 25.0% of the respondents were females and 75.0% were males.
72.5% of the household heads are married and are the majority, 7.5% are widow, 2.5% have
divorced, and 6.25% have separated while those that are single constitute 11.25%.
Those household heads who never went to school are about 8.75%, those who went to primary
school are about 52.50% of the sampled population which were the majority, also 26.25% of the
19
samples went up to secondary level, while those who attended collage training constitute about
8.75% and about 3.75% studied up to university level.
Also 26.25% earn wages and salaries, 45% get their income from farming and cultivation, those
who earn from trading are 16.25% and 12.50% earn from other sources. Details of these are in
appendix B.
.. (4.1).
20
When the level of education of the household head changes the average expenditure of the
household will increase by 10%. Increase in the age of the household head leads to increase in
expenditure by about 21%. While increase in the household size by one person increases the
households expenditure by 16%.
Therefore as ones age increases the household size also increases and highly educated household
heads spend more compared to those of other levels, those households with many members also
spend more than those that are few. Household heads characteristics like sex, age, marital status,
education level and household size determines the households expenditure by over 61%.
There is also no statistical significant difference in the average monthly expenditure between
those household heads who have not studied and those who studied to various levels (p>0.05).
However there are differences in the average expenditures between those household heads that
stop at different levels,. Household heads that completed university level have greater average
but statistically there is no enough evidence for concluding that they spend more than others. For
details see appendix C.
21
The average expenditure among public servants are found to be different from those who earn
from other sources (0.041=p<0.05) while among other groups like peasant, casual workers,
traders and public servants there is no significant difference in their average monthly expenditure
(p>0.05). The study also found out that household heads aged 35-54 spend more than those other
age groups as given in appendix C.
22
23
materials though the government had come up with education policies like UPE and USE but
still the households spend money on education.
24
equivalent to $3.67 on health services per month with some households spending zero Uganda
shillings where as others spend as much as $25 per month.
It is also found out that total expenditure on health services depends on the number of sick
people in a household and also the kind of disease a person is suffering from. This does not
depend on the occupation of the household head at 5% level of significant. The study also
reveals that households with no sick people do not spend money on health while those who have
at least one person will have to spend at least some money.
4.6 Summary
This chapter has analyzed the results, findings and interpretation of the results from the data of
the expenditure patterns by social, economic and demographic characteristics of the household
25
heads as well as expenditure patterns on each of the selected items such as education, health,
food and others. Details are in appendix C.
Chapter 5
Conclusions and Recommendations
5.1 Conclusions
The expenditure patterns among the various groups of demographic characteristics of household
heads did not show much difference in their average monthly expenditures. However there are
certain groups of households who had greater average expenditure like those whose heads have
studied university, public servants, females on some items like food and those divorced, those
26
household heads aged between 35-54 also have greater average expenditure. Generally the total
average monthly expenditure was high of about $139.6 equivalent to 335,050 Uganda shillings
and this was not determined by the social and demographic characteristics of the house hold
heads and the sizes of the household. The households spend mostly on education and food
mainly because of inflationary tendencies which tend to make food prices and prices of other
items to rise and because there are no substitutes for some food items, though they have
opportunity cost of consuming them, and spent less on items which do not require money to
consume like water.
5.2 Recommendations
In order to reduce the high monthly, termly and quarterly expenditures on commodities like
education and food, there should be good and better implementation of the education policies
like UPE and USE because the policies seems not to be operating well and the cost of scholastic
materials should likewise be reduced to enable parents acquire them easily and at lower prices,
inflationary policies should also be put in place through monetary regulations in the economy in
order to avoid the over increasing food prices and depreciating Uganda shillings against US
dollars, this will enable household heads to purchase food items cheaply and at lower cost there
by reducing on their monthly expenditures. Infrastructures such as schools, hospitals and better
road networks should also be constructed closer to the people in order to reduce the costs
incurred by the households in seeking the services far. Taxes should be levied minimal on both
the producers and consumers in order to avoid consumer exploitation and fuel tax should also be
reduced since its the determinant of the market supply in most economies.
27
References
Bacon, L. Bhattacharya, S. Kojima, M. June 2010. Expenditure of low income households on
energy Evidence from Africa and Asia. The World Bank
Jacinto F.
Household income and expenditure statistics (HIES): A comparison of eight countries. Peter
Gardner (ILO consultant) 2005, LABORSTA (http://laborsta.ilo.org/).
Household income and Expenditure survey Analysis report, federation statesof Micronesia,
2005.
Maliwichi, L., Bourne, L., Mokoena, L. 2003 Expenditure patterns on food and non food
items of Khayeliha households, western Cape, south Africa. Abstract International Journal
of consumer studies 27(3): 227
28
Ministry of finance, planning and economic development (MoFPED) 2008, Poverty action
fund (PAF) reform
USAID Uganda: Northern Uganda water supply services (NUWATER) baseline survey of water
supply systems and services in kitgum February 2010
29
Appendices
30
Appendix A
INTRODUCTION
Hello. My name is ______________, and am a student at Makerere University and I have come
to carry out a survey
The purpose of the survey is to get information about your expenditure and socio demographic
characteristics. Responses given will be kept confidential and shall be used only for academic
purpose your co-operation is highly appreciated.
SECTION 100 HOUSEHOLD IDENTIFICATION PARTICULARS
101.
Questionnaire number
102.
District
103.
Sub county
104.
Parish
105.
106
Respondents name
107
Date of interview
village
Location of Interview
108
ward=LC2
109
cell=LC1
31
202.
203.
1. Male
2. Female
Years
2. Single
3. Separated
4. Divorced
5. Widow
204.
205.
How do you obtain the main food items for your household? 1. Own produce
2. Relief
village
5. Others
206.
207.
4. College training
1. None
2. Primary
5. University
6. Other
208.
2. No
if yes how
many?
209.
1. Peasant cultivation
2. Casual laborer
3.trader
4. Public servant
210.
5. Other
32
Daily
Weekly
Monthl
y
301
302
Health expenses
303
Travel expenses
304
305
306
leisure
307
308
Fuel
(firewood,
Annually
Other
periods
specify
charcoal,
paraffin, electricity)
309
clothes
310
Contribution
obligations
to
(e.g
cultural
marriage,
funerals)
311
312
Water expenditure
313
Others expenses
Total expenditure
33
Final comments
312.
Do you have any other comment s you would like to make on the expenditure?
Thank you, very much for taking your time to answer these questions
Comments by interviewer
Interviewers name
Supervisors name
Table 1
Appendix B
Total
primary
secondary
collage
university
total
Male
30
17
60
Female
12
20
42
21
80
Sex
married
single
separated
divorced
widow
total
Male
52
60
Female
20
58
80
total
Sex
Casual work
farming
salary
trading
other
total
male
11
31
60
female
20
13
36
13
10
80
total
Source: this study (2011)
35
Frequency
15-19
20-24
25-29
30-34
12
35-39
10
40-44
14
45-49
50-54
55-59
60<
13
Appendix C
Table 5Average expenditure by Age
Age group
15-34
$97.71
35-54
$233.35
55<
$107.18
36
Sampled
(in US dollars)
number
Male
$137.83
60
Female
$144.88
20
Total
80
$263.48
38
Casual workers
$120.11
15
Farmers
$125.30
12
Traders
$182.45
Other
$71.62
Total
80
$200.77
Primary
$119.29
42
Secondary
$157.88
21
Collage
$102.10
University
$241.19
Total
80
37
Married
$153.58
58
Single
$75.81
Divorced
$84.06
Separated
$306.44
Widow
$91.11
Total
80
Percentage
dollars)
Food
$34.60
23.15
Education
$80.08
53.60
health
$3.67
2.45
Transport
$7.75
5.26
energy
$6.79
4.71
others
10.83
total
100
38
39