Public Expenditure and Economic Growth in Gisagara District, Rwanda

ABSTRACT The purpose of this study Public expenditure and economic growth in Gisagara District, Rwanda was to generate new information from the existing one, to test the null hypothesis, and to establish the relationship between public expenditure and economic growth and to confirm or deny the theory of economy by Keynes (1936). The study was in Gisagara District, Rwanda. Four specific objectives were stated and these were to; Identify the profile of the respondents in terms of gender, age, occupation and level of education, To determine the extent of public expenditure in Gisagara District, determine the level of economic growth in Gisagara district, and to establish the relationship between public expenditure and economic growth in Gisagara district. In the literature, different opinions and ideas of scholars and authors were internalized to understanding the study concepts. Descriptive correlation design was used in this study and Sloven’s formula was used to determine a sample size of 109 respondents from 150 research populations. Sampling was done by the use of purposive and simple random sampling. Self-administered questionnaires were used as research instrument and validity and reliability of research instruments were done using Content Validity Index and pre testing. ,Ethical and logistic considerations of research were also seriously considered in this research. The study findings were in agreement with the existing ones. It showed that the level of public expenditure in Gisagara district is qualified as high. The computed overall mean index was 2.53, which falls under high on the Likert scale. The findings also showed high level of economic growth in the area of the study. The computed overall mean index was 2.53, which fell under high on Likert scale.There is a significant correlation between the level of public expenditure (independent variable) and the level of economic growth (dependent variable) where the r value is 0.907 and significance is 0.000.The researcher recommend to Gisagara district to involve female and old persons in the politic of development of their area. Also Gisagara district in collaboration with government of Rwanda must make effort in augmentation of pension s and social security of workers and give it at time. Finally, the government of Rwanda in collaboration of the Ministry of Finance and Economic planning should expend money in the legislative, executive and judicial functions because of their actually importance.

 TABLE OF CONTENTS

DECLARATION A

DECLARATION B ii

DEDICATION iii

ACKNOWLEDGEMENT iv

ABSTRACT vi

TABLE OF CONTENTS vii

LIST OF TABLES ix

CHAPTER ONE I

THE PROBLEM AND ITS SCOPE 1

Background of study i

Statement of the problem 3

Purpose of the Study 4

General objective 4

Specific objectives 4

Research questions 5

Null Hypothesis 5

Scope 5

Significance of the Study 6

Operation Definitions of Key Terms 7

CHAPTER TWO 8

REVIEW OF RELATED LITERATURE 8

Concepts, Ideas, Opinions from Authors/Experts 8

Theoretical Perspectives 13

Related Studies 14

CHAPTER THREE 17

RESEARCH METHODOLOGY 17

Research Design 17

Research Population 17

vu

Sample Size 17

Sampling Procedure 18

Research Instrument 19

Validity and Reliability of the Instruments 19

Data Gathering Procedures 20

Data Analysis 21

Ethical Considerations 22

Limitations of the Study 22

CHAPTER FOUR 24

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 24

CHAPTER FIVE 35

FINDINGS, CONCLUSIONS, RECOMMENDATIONS 35

Summary of Findings concentrate on the objectives 35

Conclusions 36

Recommendations 37

REFERENCES 39

APPENDIX I A : TRANSMITTAL LETTER FOR THE RESPONDENTS 42

APPENDIX I B: INFORMED CONSENT 43

APPENDIX II A: Profile of the respondents (Face sheet) 44

APPANDIX II B: QUESTIONNAIRE TO DETERMINE THE LEVEL OF PUBLIC

EXPENDITURE 45

APPENDIX II C: QUESTIONNAIRE TO DETERMINE THE LEVEL OF

ECONOMIC GROWTH 48

APPENDIX III: VALIDITY AND RELIABILITY COMPUTATION 50

APPENDIX IV: RESEARCHER’S CURRICULUM VITAE 51