Effects of Domestic Credits, Personal Remittances & Population Growth on Inflation in Rwanda

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 7

Year of Publication : 2020

Authors : Radjab Nyabyenda, Elias Gakuru

10.14445/23939125/IJEMS-V7I7P122

How to Cite?

Radjab Nyabyenda, Elias Gakuru, "Effects of Domestic Credits, Personal Remittances & Population Growth on Inflation in Rwanda," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 7, pp. 169-179, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I7P122

Abstract:

This paper investigates the long-run relationship between domestic credits, population growth, and personal remittances received, and inflation in Rwanda using Johansen Co-integration analysis and Error Correction Model (ECM). According to the results of the analysis, it was realized that there is a long-run relationship between domestic credits, population growth, personal remittances received, and Inflation. The government of Rwanda is advised to emphasize its credit control policy, to reinforce its population control policy, and to guide remittances from consumption motives to investment motives which can enhance economic growth. These practices should contribute more to decreasing the inflation rate in Rwanda.

Keywords:

Co-integration, Error Correction Model, Domestic credits, Personal remittances, and Inflation.

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