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The Effects of External Public Debt on Economic Growth of Rwanda

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  • Mrs. NIBEZA Sylvie (AQEPD, Msc, PGDE)

    (Assistant Lecturer in the Faculty of Education, University of Technology and Arts of Byumba (UTAB))

Abstract

This study investigated the effect of External public debt on Economic growth of Rwanda through GDP, it considers the period from 1980 to 2015. The study used annual time series on external public debt, debt services and GDP (-1). It is that, most of developing countries like Rwanda depend on external debt due to their budget deficits and fill the gap of low saving to finance its consumption and investments. Objective of the study were to establish empirically effect of external pubic debt on economic growth of Rwanda. The study used data from World Bank international account, and OCED national account file, and World Bank international debt statistics. Autoregressive distributed lag model and Cointegration test are used for showing long run relationship between variables. The study showed that there is significant impact of external public debt, debt services and GDP (-1), External debt are negatively to GDP where the increase in one unit of external public debt GDP decrease by 0.101 on average, while Debt services and GDP (-1) affect GDP positively, the increase in 1 unit of DS and GDP (-1) increase GDP by 0.254 and 0.92 on average.

Suggested Citation

  • Mrs. NIBEZA Sylvie (AQEPD, Msc, PGDE), 2024. "The Effects of External Public Debt on Economic Growth of Rwanda," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3), pages 2053-2075, March.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:3:p:2053-2075
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