Demographic Characteristics and Economic Growth: Rwanda’s Experience (1995-2014)

Vallence Ngabo Maniragaba, Fabrice Nkurunziza and Iradukunda Michel

Journal of Social Economics, 2016, vol. 3, issue 4, 170-184

Abstract: Given the combination of high poverty rates, persistently high population growth rates, and low per capita economic growth in most African countries, the link between demography and Economic growth has received renewed attention. In particular, the question is being asked whether the nature of demographic characteristics coupled with political unrests observed in most African states are the reasons for Africa’s poor economic performance.The present work entitled “ Demographic Characteristics and Economic Growth: Rwanda’s Experience,(1995-2014), †underlined the effect of demographic characteristics on economic growth in Rwanda from 1995 to 2014 using econometric analysis. Specific objectives of the study were to determine the relationship between population growth and economic growth, and between demographic maturity and economic growth as well as to analyze the effect of gender equality, life expectancy and education on economic growth.Data from 1995 to 2014 for the variables ; GDP as a proxy for economic growth, demographic characteristics such as population growth rate (PGR), working age group (WAG), gender equality (GE), life expectancy (LE), labor force with primary education level (LFPE), labor force with secondary education level (LFSE) and labor force with tertiary education level (LFTE) were used. Education, gender equality, working age group and life expectancy significantly explained Rwanda’s economic growth. No significant relationship between PGR and GDP was found. GDP increased as the gender equality increases while it decreased as labor force level of education increases. Gender equality had a greater impact when it was lower than when it was medium or when it was high while labor force with tertiary education level had a greater impact than labor force with secondary and primary level of education.

Keywords: Economic growth; Demographic characteristics; Rwanda; Africa. (search for similar items in EconPapers)
Date: 2016
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