Impact of Knowledge Economy on Economic Growth in Rwanda: An Empirical Study during the Period (2000-2019)


Abstract:
Purpose- This study aims to analyze the effect of the knowledge economy on economic growth in Rwanda, using time series data over 2000-2019.
Design/methodology/approach - We used the Auto Regressive Distributed-Lagged (ARDL) bound testing approach to estimate the relationship between knowledge economy and economic growth in Rwanda in the short and long run.
Findings- The results show that Knowledge-Economy indicators have a significant long-run relationship with the economic growth in Rwanda.
Originality/value – Actions for increasing spending on research and development with the expansion of databases and information centers within government agencies are very essential for Rwanda to increase the economic growth and competitiveness in the global markets.
Keywords: ARDL model; Economic Growth ;Knowledge Economy; Rwanda;
Paper type: Research paper
Introduction:
The world is living through the fourth industrial revolution, which is sometimes known as the information revolution. Along with other factors of production, information is the cornerstone of the production process. A knowledge economy can produce, transmit, and apply knowledge, which is the primary factor in growth, wealth creation, and employment in various developmental sectors