Real gross domestic product as a macro-economic indicator measures the value of economic output after adjustment for price changes. In this regard, due to the role played by financial development in economic growth, financial intermediation has been regarded as an important factor in boosting gross domestic product in the both developed economies and developing economies. The study investigated the effect of financial development on Real Gross Domestic Product in Rwanda. The study adopted ex post facto design. Time series data were collected from 2011-2022 and Ordinary Least Squares (OLS) was deployed. Findings revealed that financial liberalization, domestic credit to private sector, monetary policy rate, market capitalization and all share index jointly and significantly influenced real gross domestic product (Adj. R2 = 78.65%, p = 0.009028 < 0.05, F-stat = 9.108778) in Rwanda. The study concluded that financial development enhanced real gross domestic product in Rwanda. It was recommended that the government of Rwanda should improve on real gross domestic product by improving financial development through more liberalization of the financial sector, expansion of domestic credit to the private sector, market capitalization, all share index and use of monetary policy rate as effective channel of monetary transmission mechanism in the economy.
| Published in | International Journal of Economics, Finance and Management Sciences (Volume 12, Issue 2) |
| DOI | 10.11648/j.ijefm.20241202.15 |
| Page(s) | 101-112 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
All Share Index, Domestic Credit, Financial Liberalization, Market Capitalization, Monetary Policy, Real Gross Domestic Product
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APA Style
Karekezi, J. C., Owolabi, S. A., Ogbebor, P. I., Nduka, M. M. (2024). Financial Development and Real Gross Domestic Product in Rwanda. International Journal of Economics, Finance and Management Sciences, 12(2), 101-112. https://doi.org/10.11648/j.ijefm.20241202.15
ACS Style
Karekezi, J. C.; Owolabi, S. A.; Ogbebor, P. I.; Nduka, M. M. Financial Development and Real Gross Domestic Product in Rwanda. Int. J. Econ. Finance Manag. Sci. 2024, 12(2), 101-112. doi: 10.11648/j.ijefm.20241202.15
AMA Style
Karekezi JC, Owolabi SA, Ogbebor PI, Nduka MM. Financial Development and Real Gross Domestic Product in Rwanda. Int J Econ Finance Manag Sci. 2024;12(2):101-112. doi: 10.11648/j.ijefm.20241202.15
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Download@article{10.11648/j.ijefm.20241202.15,
author = {Jean Claude Karekezi and Sunday Ajao Owolabi and Peter Ifeanyi Ogbebor and Moseri Moses Nduka},
title = {Financial Development and Real Gross Domestic Product in Rwanda
},
journal = {International Journal of Economics, Finance and Management Sciences},
volume = {12},
number = {2},
pages = {101-112},
doi = {10.11648/j.ijefm.20241202.15},
url = {https://doi.org/10.11648/j.ijefm.20241202.15},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20241202.15},
abstract = {Real gross domestic product as a macro-economic indicator measures the value of economic output after adjustment for price changes. In this regard, due to the role played by financial development in economic growth, financial intermediation has been regarded as an important factor in boosting gross domestic product in the both developed economies and developing economies. The study investigated the effect of financial development on Real Gross Domestic Product in Rwanda. The study adopted ex post facto design. Time series data were collected from 2011-2022 and Ordinary Least Squares (OLS) was deployed. Findings revealed that financial liberalization, domestic credit to private sector, monetary policy rate, market capitalization and all share index jointly and significantly influenced real gross domestic product (Adj. R2 = 78.65%, p = 0.009028 < 0.05, F-stat = 9.108778) in Rwanda. The study concluded that financial development enhanced real gross domestic product in Rwanda. It was recommended that the government of Rwanda should improve on real gross domestic product by improving financial development through more liberalization of the financial sector, expansion of domestic credit to the private sector, market capitalization, all share index and use of monetary policy rate as effective channel of monetary transmission mechanism in the economy.
},
year = {2024}
}
TY - JOUR T1 - Financial Development and Real Gross Domestic Product in Rwanda AU - Jean Claude Karekezi AU - Sunday Ajao Owolabi AU - Peter Ifeanyi Ogbebor AU - Moseri Moses Nduka Y1 - 2024/04/29 PY - 2024 N1 - https://doi.org/10.11648/j.ijefm.20241202.15 DO - 10.11648/j.ijefm.20241202.15 T2 - International Journal of Economics, Finance and Management Sciences JF - International Journal of Economics, Finance and Management Sciences JO - International Journal of Economics, Finance and Management Sciences SP - 101 EP - 112 PB - Science Publishing Group SN - 2326-9561 UR - https://doi.org/10.11648/j.ijefm.20241202.15 AB - Real gross domestic product as a macro-economic indicator measures the value of economic output after adjustment for price changes. In this regard, due to the role played by financial development in economic growth, financial intermediation has been regarded as an important factor in boosting gross domestic product in the both developed economies and developing economies. The study investigated the effect of financial development on Real Gross Domestic Product in Rwanda. The study adopted ex post facto design. Time series data were collected from 2011-2022 and Ordinary Least Squares (OLS) was deployed. Findings revealed that financial liberalization, domestic credit to private sector, monetary policy rate, market capitalization and all share index jointly and significantly influenced real gross domestic product (Adj. R2 = 78.65%, p = 0.009028 < 0.05, F-stat = 9.108778) in Rwanda. The study concluded that financial development enhanced real gross domestic product in Rwanda. It was recommended that the government of Rwanda should improve on real gross domestic product by improving financial development through more liberalization of the financial sector, expansion of domestic credit to the private sector, market capitalization, all share index and use of monetary policy rate as effective channel of monetary transmission mechanism in the economy. VL - 12 IS - 2 ER -
School of Management Sciences, Babcock University, Ilishan-Remo, Nigeria
School of Management Sciences, Babcock University, Ilishan-Remo, Nigeria
School of Management Sciences, Babcock University, Ilishan-Remo, Nigeria
School of Management Sciences, Babcock University, Ilishan-Remo, Nigeria
