Private sector development and economic growth in Rwanda
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Date
2017-10
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics & management.
Abstract
This study investigated the impact of private sector development on economic
growth in Rwanda. The following objective guided the study: ii) to assess the
behavior of private sector development in Rwanda ii) to assess the behavior of
economic growth in Rwanda. iii) To determine the impact of private sector
development on economic growth in Rwanda. This study used descriptive
correlation design. This study adopted two models: Solow’s swan model and
endogenous growth models; however, endogenous growth was preferred in this
study. This study used secondary data from the National Bank of Rwanda, National
Institute of Statistics of Rwanda, and World Bank reports. Data was analyzed using
Autocorrelation Function and Partial Autocorrelation Function and regression
analysis. stationary test was conducted on each of the variables, a multiple
regression model was then fitted using ordinary least squares method. Financial
sector development, foreign direct investment, capital and export were found to be
statistically significant with positive coefficients atO.05 level of significance.
Population growth rate was statistically insignificant though with a positive
coefficient. The study concluded that the Rwandan economy depends on basically
foreign direct investment, capital, export and financial sector development which
positively impact on the growth rate. Population growth rate was also found to have
a positive effect on economic growth though it was statistically insignificant. The
study recommended that for Rwanda to achieve a desired economic growth rate, it
must invest in attracting foreign direct investments and development of the financial
sector and to some extent the quality of the human capital. The government of
Rwanda should try and work hand in hand with the private sector and give them
better business environment. This good business environment gesture should be
widely extended to the foreign investors so as to attract them to bring in more
foreign direct investment.
Description
A Thesis Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirements For the award of the Degree of Master of Arts in economics of Kampala International University
Keywords
Private sector, Development, Economic growth, Rwanda