Olorogun Lukman Ayinde
Department of Economics and Finance, Faculty of Economics, Administrative, and Social Sciences, Istanbul Gelisim University, Avcila/Istanbul, Turkey.
J Knowl Econ. 2022;13(4):2695-2717. doi: 10.1007/s13132-021-00822-w. Epub 2021 Aug 7.
Poverty reduction and economic progress and development accentuate sustainability and growth. This study explores a new model that specifies the FDI-led growth theory for the Rwandan economy. An annual time series data from 1970 to 2018 was obtained from the World Bank. The Johansen cointegration and ARDL approaches were used after realizing a varied order of integration from the stationarity test by adopting unit root tests. All variables were established to wield a positive impact on economic development except financial development from the financial sector which was significant in the short run but insignificant in the long run. Financial development from the private sector, exchange rate, consumer price index, gross domestic product, and population wield significant influence on FDI inflow for economic development, which implies that an improvement in these factors will equitably support economic growth. In principle, 1% improvement in the financial development from the private sector and exchange rate will produce a corresponding 397% and 78% increase advancement in FDI inflows in the long run. Averagely, financial development from the private sector, exchange rate, consumer price index, gross domestic product, and population are valuable to the economy of Rwanda. Therefore, we recommend that the relevant authority expand regional and global bilateral and partnership to enhance the economy to fully reap the benefits of engaging in globalization.
减贫以及经济进步与发展强化了可持续性和增长。本研究探索了一种新模型，该模型明确了卢旺达经济的外国直接投资带动增长理论。1970年至2018年的年度时间序列数据取自世界银行。在通过单位根检验进行平稳性检验后发现存在不同的积分阶数，于是使用了 Johansen 协整和自回归分布滞后方法。结果表明，除金融部门的金融发展在短期内显著但长期不显著外，所有变量对经济发展均产生积极影响。私营部门的金融发展、汇率、消费价格指数、国内生产总值和人口对外国直接投资流入经济发展具有重大影响，这意味着这些因素的改善将公平地支持经济增长。原则上，私营部门金融发展和汇率提高1%，从长期来看将分别使外国直接投资流入相应提高397%和78%。平均而言，私营部门的金融发展、汇率、消费价格指数、国内生产总值和人口对卢旺达经济很重要。因此，我们建议相关当局扩大区域和全球双边及伙伴关系，以增强经济，充分收获参与全球化的益处。
