Impact of Urbanisation & Agriculture sector on Industrialisation in Rwanda

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 8

Year of Publication : 2020

Authors : Dr. Radjab Nyabyenda, Gakuru Elias, Uwiringiyimana Felicien

10.14445/23939125/IJEMS-V7I8P125

How to Cite?

Dr. Radjab Nyabyenda, Gakuru Elias, Uwiringiyimana Felicien, "Impact of Urbanisation & Agriculture sector on Industrialisation in Rwanda," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 8, pp. 188-195, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I8P125

Abstract:

This paper examines the association between urbanization, the agricultural sector, and industrialization in Rwanda. Vector Auto-Regressive (VAR) model and Granger causality were used based on time series data from 1980 to 2018. The authors concluded that there is no long-run association between urbanization, agricultural sector, and industrial sector in Rwanda. On the other hand, we realized that there is evidence of bidirectional causality moving from agricultural sector to industrial sector and from urbanization to the industrial sector. On the other hand, we realized that there is a Uni-Directional Causality running from Urbanisation to Agriculture.
Moreover, the results support a policy made in Rwanda, as it encourages the industrial sector. We recommend the government of Rwanda focus on and increase the budget allocated in the agricultural sector to boost production, which will lead to agro-processing industrial development as well as food security to satisfy the urban increasing demand instead of depending on food imports.

Keywords:

Vector Auto-Regressive (VAR) model, Granger causality, urbanization, agriculture, industrial sector.

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