Abstract: The main objective of this study was to assess the link on causality between macro-economic variables and economic growth in Rwanda since 1997 up to 2015 using the evidence from unit root and co-integration test. The specific objectives of this study were; to evaluate the effect of consumer price index on economic growth, to determine the effect FDI growth on economic growth; to examine the effect of Money Supply on economic growth; to assess the effect of Interest rate growth on economic growth; to evaluate the effect of trade openness on economic growth; The results based on the Johansen co-integration tests and result to either a negative positive long-run relationship between macro-economic indicators and economic growth. Therefore, policies aiming at keeping macro-economic variables at a magnitude level should be supported in order to achieve economic growth.
Keywords: inflation, economic growth, interest rate, unemployment, foreign direct investment and money supply.
Title: MACRO-ECONOMIC VARIABLES AND ECONOMIC GROWTH IN RWANDA: AN EMPIRICAL ANALYSIS
Author: Robinson Hakiza Mugisha, Jaya Shukla, Thomas Kigabo
International Journal of Social Science and Humanities Research
ISSN 2348-3164 (online), ISSN 2348-3156 (Print)
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