Contribution of Population Growth on Economic Growth in Rwanda (1992-2022)

This study examines the impact of changes in population size on economic growth in Rwanda between 1992 and 2022. The research methodology involves the use of secondary data from World Bank development indicators. The key variables analysed include population size, gross capital formation expenditure, and gross domestic product growth rate. A multivariate time series analysis was used to examine the impact of population on economic growth in this study. Diagnostic tests were conducted, and the results indicated that the model was sound. The variables were not significantly affected by heteroskedasticity and serial correlation problems. During the unit root test, it was found that all variables were stationary at the level using intercept and trend. This led to the use of the Ordinary Least Square model. The findings reveal a complex relationship between population dynamics, gross capital formation, and economic growth in Rwanda. The R-squared value was found to be close to one, indicating that population growth and gross capital formation explain economic growth to the greatest extent. The findings from the study showed that population has negative relationship with economic growth. Gross capital formation also plays a crucial role in driving economic growth by facilitating investment activities across different sectors.