Abstract: It has been proved that the Economy of Rwanda rely mostly on neighboring countries. In this study, Tanzania was considered as the most influencing Country on Rwanda’s Gross Domestic Product (GDP) due to strong trade flow between the two neighbors. Objective: The study aim was looking at whether the Inflation rate of Tanzania has an influence on Rwanda GDP and/or not. Methodology: To look at this scenario, A Mathematical and Regression Analysis Models were used. We studied this scenario with real data of 23years, that is, 1996-2019. Results: Having used the aforementioned two Models, altogether as a comparative Analysis, give the same results. The findings show that the more inflation rate of Tanzania decreases, the more Rwanda GDP increases which shows a positive effect on Rwanda’s Economy. Conclusion: Since the two models show a positive influence of Tanzania Inflation rate when it decreases, has on Rwanda’s Economy, then it is predicted that if it goes high, the Economy of Rwanda would fall down. Recommendation: We recommend the government of Rwanda to strengthen trade flow with Tanzania and kept it forward.
Keywords: Mathematical Model, Threshold, Inflation rate, GDP, Rwanda-Tanzania.
Title: A Mathematical and Regression Analysis Models on the Effect of the Inflation rate of Tanzania on Rwanda’s Economy: A comparative Analysis
Author: Venuste Ntakirutimana, Gratien Twagirumukiza, Charline Uwilingiyimana
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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