Assessing the Impact of Rwanda Trade Integration on Inclusive Growth

Emmanuel Niyonzima

International Journal of Economics & Business Administration (IJEBA), 2023, vol. XI, issue 4, 45-63

Abstract: Purpose: Moving towards self-sufficient economy is the striving plan for every country, especially less developed countries. This way, this paper analysed the impact of trade integration on inclusive growth in Rwanda using time series data from 1992 up to 2022. Design/Methodology/Approach: This study used the Fully Modified Least Squares approach to internalise the problem of endogeneity due to omitted variables and feedback effect. Findings: This research established evidence of long relationship between the five independent variables (trade integration, Import duties, foreign direct investment, Exchange rate, CPI inflation) and the inclusive growth of the Rwandan economy. Besides, this results indicated that an increase in trade integration is expected to increase inclusive growth in the economy of Rwanda. Practical Implications: Therefore, it is highly recommended to foster all initiatives that bring about effective trade harmonization and exchange rate modalities and policies so as to improve on inclusive economic growth in Rwanda. Originality/Value: The results highlighted that high import duties will reduce inclusive growth in Rwanda.

Keywords: Inclusive growth; poverty; income inequality; trade integration. (search for similar items in EconPapers)
JEL-codes: F10 F15 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijebaa:v:xi:y:2023:i:4:p:45-63

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