TITLE:
Econometric Analysis of Transport Sector on Economic Growth in Rwanda (1999-2018)
AUTHORS:
Jean Marie Vianney Ntamwiza
KEYWORDS:
Gross Domestic Product, Gross Capital Formation, Trade Balance and Transport Services, and Transport Infrastructures
JOURNAL NAME:
Journal of Transportation Technologies,
Vol.10 No.4,
October
30,
2020
ABSTRACT: The purpose of this study
was to examine Econometric analysis of transport sector on economic growth in
Rwanda for the period of 1999 up to 2018. It’s an empirical study which used
econometric techniques such as unit root test, Engle granger test/cointegration
test, linear regression model and the error correction model to analyze the
contribution of transport sector on economic growth based on Gross Capital
formation in terms of transport infrastructures, trade balance as import and
export can be affected by transport system, and contribution of transport
services to economic growth. This study found that, there was a strong
statistically significant relationship between GDP and transport sector as
measured by transport services for both short run and long run as it is shown
by R-squared of 0.997316 and 0.782009 of the long run regression model and
error correction model respectively. ECM showed a quick recovery of 81.3% every
year after a shock happen. This study concluded that there is a short run and
long run relationship between Transport service and economic growth. This study
recommends that policy implication that can be deducted from this study to facilitate transport sector through expansion of road networks and
maintenance of existing road networks coupled with revitalization of
alternative mode of transportation such as air transport, rail system and
waterways will significantly improve the growth of the economy