FOREIGN PARTNERSHIP POLICY, POLITICAL ENVIRONMENT AND ECONOMIC DEVELOPMENT by Irivuzimana Aime Muyombano Ph.D
*Lecturer, Economics Department, UNILAK University, Kigali-Rwanda
** Lecturer at Kibabii University College, Nairobi-Kenya
Abstract: Foreign policy and economic development constitute vital part of harnessing the potential of new trade relationships, creating jobs and channeling investment to the world's poorest countries. Rwanda in an effort to maintain mutual technical and political cooperation, it has been trying to harmonize its foreign policy on partnership, regional and global relations besides wealth creation. This study looks at the contribution of foreign partnership policy on economic development at the prevailing political environment in Rwanda. Cross sectional survey design was used. The study used a target population of 462 and a sample size of 214 respondents determined by Yamane (1967) Formula. Data was collected using structured questionnaires and interview guides whose reliability and validity were tested at an index of 0.70 Cronbach's Alpha coefficient. Inferential statistics were analyzed using regression analysis. The hypotheses were tested using Pearson chi-square test of independence at a significance level of 0.05. The findings show that political environment had a significant moderating effect on the relationship between foreign partnership policy and economic development (R 2 =0.783, F (1, 213) = 9.757, p=0.003, α=0.05) with a predictor model (YGDP PER CAPITA = 2.265 + 0.769X1). The study thus concludes that the political environment in Rwanda, being stable, improves the contribution of foreign partnership policy on economic development in terms of Per Capita in Rwanda from β1 =0.755 (F=8.154, R² = 0.668, Sig=0.004 at α=0.05) to β1=0.769 (F=9.757, R² = 0.783 Sig=0.004 at ε=0.05). The study recommended that various stakeholder should work towards improving political stability in addition to enhancing various foreign partnership policies so as to realize better economic development in terms of Per Capita and Balance of Trade.
Keys Word: Foreign Partnership Policy, Political Environment and Economic Development
https://www.researchgate.net/publication/333264507_FOREIGN_PARTNERSHIP_POLICY_POLITICAL_ENVIRONMENT_AND_ECONOMIC_DEVELOPMENT_IN_RWANDA
Author Prof. Dr. Rugema D. Muyombano
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