Authors :
NDAGIJIMANA Jabo Felix
Volume/Issue :
Volume 8 - 2023, Issue 10 - October
Google Scholar :
https://tinyurl.com/yk89y8un
Scribd :
https://tinyurl.com/t5fced4j
DOI :
https://doi.org/10.5281/zenodo.10147611
Abstract :
This study investigates the interplay of
industrialization, urbanization, and economic growth in
Rwanda. Using yearly data from 1973 to 2021, this study
uses the Vector Error Correction Model technique to
identify long-term and short-term relationships between
industrialization, urbanization, and economic growth in
Rwanda. The Granger Wald test is used to determine
whether the variables are causally related. The study
findings demonstrate the long-term and short-term
reciprocal relationships between industrialization,
urbanization, and economic growth.Moreover,a
bidirectional causality from economic growth to
industrialization in the long run and unidirectional
causality from industrialization and economic growth to
urbanization was found while only economic growth had
a causal effect on urbanization in the short run. The
study found that Decisions affecting one component can
have far-reaching effects for others. It is critical to
adequately manage this dynamic to maintain balanced
and sustainable development.
Keywords :
Industrialization, Urbanization, Economic growth, Rwanda.
This study investigates the interplay of
industrialization, urbanization, and economic growth in
Rwanda. Using yearly data from 1973 to 2021, this study
uses the Vector Error Correction Model technique to
identify long-term and short-term relationships between
industrialization, urbanization, and economic growth in
Rwanda. The Granger Wald test is used to determine
whether the variables are causally related. The study
findings demonstrate the long-term and short-term
reciprocal relationships between industrialization,
urbanization, and economic growth.Moreover,a
bidirectional causality from economic growth to
industrialization in the long run and unidirectional
causality from industrialization and economic growth to
urbanization was found while only economic growth had
a causal effect on urbanization in the short run. The
study found that Decisions affecting one component can
have far-reaching effects for others. It is critical to
adequately manage this dynamic to maintain balanced
and sustainable development.
Keywords :
Industrialization, Urbanization, Economic growth, Rwanda.
