Impact of foreign direct investment on economic growth of Rwanda (2007-2022)

Abstract

Foreign Direct Investment (FDI) plays a pivotal role in the economic development of emerging economies, and Rwanda is no exception. This academic project aims to comprehensively analyze the impact of FDI on the economic growth of Rwanda over a period of 15 years, from 2007 to 2022. The study employs a combination of quantitative and qualitative research methods to assess the multifaceted relationship between FDI inflows and Rwanda's economic growth indicators. The quantitative aspect of the research involves the collection and analysis of macroeconomic data, including FDI inflows, Gross Domestic Product (GDP), employment rates, and trade balances, among others. Time-series data analysis techniques, such as regression analysis and correlation studies, are employed to establish statistical relationships and trends between FDI and economic growth indicators. In addition to quantitative analysis, the project incorporates qualitative assessments through interviews and surveys with key stakeholders, including government officials, business leaders, and FDI investors, to provide a comprehensive understanding of the qualitative dimensions of FDI impact, including its influence on technology transfer, job creation, and local industry development. The findings of this research project are expected to shed light on the dynamics of FDI in Rwanda and its role in shaping the country's economic growth trajectory (Figures 1). By examining the specific sectors and regions that have been most affected by FDI, the study will provide actionable insights for policymakers, investors, and other stakeholders aiming to harness the potential benefits of FDI for sustainable economic development. This research contributes to the existing body of literature on FDI and economic growth in developing countries, with a particular focus on the Rwandan context. The insights generated by this study are expected to inform evidence-based policy decisions and strategies for optimizing the positive impacts of FDI on Rwanda's economic growth in the future.