The purpose of this research project was to assess the impact of interest rates on economic growth in Rwanda from 1998 to 2020. In conducting this research, three objectives were to determine the factors that influence interest rate on Rwandan economy, to assess the level of economic growth in Rwanda from 1998 to 2020, and to assess the relationship between interest rates on economic growth in Rwanda from 1998 to 2020. To achieve these objectives, literature were reviewed on the subject matter, and then data was collected with annually reports published by BNR, NISR and MINECOFIN through inflation rate, GDP and Interest rate. Documentation review was used as a tool for data collection.
Inhaltsverzeichnis (Table of Contents)
- CHAPTER ONE: GENERAL INTRODUCTION
- 1.0. Introduction
- 1.1. Background to the study
- 1.2. Statement of the problem
- 1.3. Objectives of the study
- 1.4. Research questions
- 1.5. Scope of the study
- CHAPTER TWO: LITERATURE REVIEW
- 2.0. Introduction
- 2.1. Conceptual review
- 2.2. Empirical review
- 2.3. Relationship between interest rates and economic growth
- 2.4. Theoretical Framework
- 2.5. Conceptual framework
- 2.6. Critical review
- 2.7. Research gap identification
- CHAPTER THREE: RESEARCH METHODOLOGY
- 3.0. Introduction
- 3.1. Research design
- 3.2. Target population
- 3.3. Sources of data
- 3.4. Data collection instrument
- 3.5. Data collection procedure
- 3.6. Data processing
- 3.7. Data analysis
- CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
- 4.1. Introduction
- 4.2. Data presentation and interpretation
- CHAPTER FIVE: SUMMARY OF MAJOR FINDINGS, CONCLUSION AND RECOMMENDATIONS
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The research project assesses the impact of interest rates on economic growth in Rwanda from 1998 to 2020. It aims to determine factors influencing interest rates, assess Rwanda's economic growth during this period, and analyze the relationship between interest rates and economic growth.
- Impact of interest rates on Rwandan economic growth.
- Factors influencing interest rates in Rwanda (inflation, exchange rates, deposit interest rates).
- Analysis of Rwanda's economic growth trends from 1998-2020.
- The interplay between monetary policy (interest rate control) and economic growth.
- Evaluation of the effectiveness of government policies in managing interest rates and stimulating economic growth.
Zusammenfassung der Kapitel (Chapter Summaries)
CHAPTER ONE: GENERAL INTRODUCTION: This chapter sets the stage for the research by introducing the background of the study, highlighting the ongoing debate about the effects of interest rates on economic growth globally. It notes conflicting research findings on the impact of expansionary and tight monetary policies on economic activity. The chapter establishes the problem statement, research objectives (to determine factors influencing interest rates, assess Rwanda's economic growth, and analyze the relationship between them), research questions, and the scope of the study, geographically limiting itself to Rwanda and temporally focusing on the period from 1998 to 2020. The global financial crisis of 2008/2009 is presented as a significant event that re-ignited the debate about the relationship between interest rates and economic growth, highlighting contrasting viewpoints on the effectiveness of low interest rates in stimulating recovery.
CHAPTER TWO: LITERATURE REVIEW: This chapter delves into existing literature relevant to the study. It covers conceptual and empirical reviews of interest rate effects on the economy. The conceptual review lays the theoretical groundwork, potentially introducing and explaining different economic theories like Keynesian economics, Monetarism, and Neoclassical growth theory, exploring their perspectives on the interplay between interest rates, savings, investment, and overall growth. The empirical review summarizes findings from previous research on the effects of factors like inflation, exchange rates, and deposit interest rates on interest rates themselves, and how those affect economic growth. It explores the multifaceted relationship between interest rates and economic growth, highlighting various perspectives and existing research findings. The chapter concludes by summarizing identified research gaps and establishing a solid foundation for the author's unique contribution to the existing body of knowledge on the Rwandan economy.
CHAPTER THREE: RESEARCH METHODOLOGY: This chapter outlines the research design and methodology employed in the study. It details the target population, data sources (likely including annual reports from the National Bank of Rwanda, National Institute of Statistics of Rwanda, and the Ministry of Finance and Economic Planning), data collection instruments and procedures (likely involving documentation review), data processing techniques, and the statistical methods used for data analysis. A significant portion of this chapter would focus on justifying the chosen methodology, explaining its appropriateness for the research questions and ensuring the reliability and validity of the findings.
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION: This chapter presents the collected data, its analysis, and interpretation. It likely employs statistical methods to examine the relationship between interest rates and economic growth in Rwanda during the study period (1998-2020). The chapter probably includes tables and graphs illustrating key findings, including the effects of inflation, exchange rates, and deposit interest rates on both interest rates and economic growth. The analysis would likely test for stationarity and examine the short-term and long-term effects of the variables on economic growth.
Schlüsselwörter (Keywords)
Interest rates, economic growth, Rwanda, inflation, exchange rates, monetary policy, fiscal policy, GDP, investment, savings.
Frequently Asked Questions: Research Project on Interest Rates and Economic Growth in Rwanda (1998-2020)
What is the overall focus of this research project?
This research project assesses the impact of interest rates on economic growth in Rwanda between 1998 and 2020. It investigates the factors influencing interest rates, analyzes Rwanda's economic growth trends during this period, and examines the relationship between interest rates and economic growth.
What are the key objectives of the study?
The study aims to:
- Determine the impact of interest rates on Rwandan economic growth.
- Identify factors influencing interest rates in Rwanda (such as inflation, exchange rates, and deposit interest rates).
- Analyze Rwanda's economic growth trends from 1998 to 2020.
- Explore the interplay between monetary policy (interest rate control) and economic growth.
- Evaluate the effectiveness of government policies in managing interest rates and stimulating economic growth.
What is covered in the Introduction Chapter (Chapter One)?
Chapter One provides background information on the study, stating the problem, objectives, research questions, and scope. It highlights the ongoing debate about interest rates' effects on economic growth, referencing the 2008/2009 global financial crisis as a significant event that re-ignited this debate. The chapter sets the stage for the research by outlining the context, problem, and goals.
What does the Literature Review Chapter (Chapter Two) encompass?
Chapter Two presents a comprehensive review of existing literature on interest rates and their impact on economic growth. This includes both conceptual (theoretical frameworks like Keynesian economics, Monetarism, and Neoclassical growth theory) and empirical reviews of previous research findings. It also identifies research gaps to justify the unique contribution of this study.
What methodology is described in Chapter Three?
Chapter Three details the research design and methodology. It specifies the target population, data sources (likely including reports from the National Bank of Rwanda, National Institute of Statistics of Rwanda, and the Ministry of Finance and Economic Planning), data collection methods (likely involving documentation review), data processing techniques, and the statistical methods used for data analysis. The chapter justifies the chosen methodology to ensure reliability and validity.
What is presented in Chapter Four?
Chapter Four presents the collected data, its analysis, and interpretation. It uses statistical methods to examine the relationship between interest rates and economic growth in Rwanda from 1998 to 2020. This chapter likely includes tables and graphs illustrating key findings, including the effects of inflation, exchange rates, and deposit interest rates on both interest rates and economic growth. The analysis likely includes tests for stationarity and examines both short-term and long-term effects.
What key themes are explored in the study?
Key themes include the impact of interest rates on Rwandan economic growth, the factors influencing interest rates (inflation, exchange rates, deposit interest rates), an analysis of Rwanda's economic growth trends (1998-2020), the interaction between monetary policy and economic growth, and the evaluation of government policies' effectiveness in managing interest rates and stimulating economic growth.
What are the keywords associated with this research?
Keywords include: Interest rates, economic growth, Rwanda, inflation, exchange rates, monetary policy, fiscal policy, GDP, investment, savings.
What is the time period covered by this research?
The research focuses on the period from 1998 to 2020.
What is the geographical scope of this research?
The research is geographically limited to Rwanda.
- Quote paper
- Nyandwi Valens (Author), 2022, Effect of Interest Rates on Economic Growth in Rwanda (1990-2020), Munich, GRIN Verlag, https://www.grin.com/document/1195204
