ANALYSIS OF THE IMPACT OF RWANDA’S INDUSTRIAL POLICY ON ECONOMIC DEVELOPMENT (2000 - 2022)

Abstract

This research focused on the analysis of the Rwanda’s industrial policy in driving economic development. The research objectives include determine the specific industrial sectors that have seen significant growth due to the policies, and understand their contributions to the overall economy, Investigate how the growth of industries in Rwanda has influenced employment opportunities and job creation in the country and recognize potential hurdles or gaps in policy execution and their effects on economic transformation and development, To achieve these goals, Linear regression model is employed to analyze the relationship between variables with data from 2000 to 2022 , the study highlights the significant positive impact of the intensity of policy implementation (IPI) on the industry's contribution to GDP. Investments in specific sectors, notably manufacturing (INV1) and agro-processing (INV3), were found to significantly enhance GDP per capita growth and job creation. Conversely, technological investments (INV2) exhibited ambiguous effects on these economic markers. The research also underscores the potential of effective policy implementation to reduce poverty rates, with certain sectors showing more promise than others do. Despite the positive trends, challenges such as implementation bottlenecks and potential multicollinearity in regression models emerged. The study concludes by emphasizing the need for effective policy execution, targeted investments, and continuous monitoring to achieve Rwanda's economic aspirations.