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Welfare implication of determinants affecting aggregate consumption expenditures in Rwanda

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par NIZEYIMANA Alphonse
Kigali Independent University ULK - BSc Economics 2016
  

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5.Hypothesis

In order to respond to the above mentioned questions in this statement of the problem, same hypothesis were indicated to guide the researcher for positive or negative conclusion that can be explained like anticipation or opinion regarding the result of the study. Another fact is prediction regarding the possible outcomes from the study in term of the variable that hypothesis is tentative proposition which is subject verification through subsequent investigation (CRAWITZ, 2001-198). So the provisionary answers from the above mentioned questions are the following:

? Trends positions of gross consumption expenditure that is relative to its associates to which it belongs in Rwanda are upward sloping.

? There is a long run relationship between gross consumption expenditure and its associates in Rwanda.

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6.Objectives of the study

This research aims at general and specific objectives and, which give a sense to the general objective 6.1General objectives

The general objective of this study is to verify the impact of income, interest rate, inflation rate and exchange rate on gross consumption expenditure in Rwanda.

6.2Specific objectives

This study pursues the following specifics objectives:

? To identify the relationship between explained and explanatory variables of the above

mentioned model in Rwanda

? To study and examine the trends of that model.

? To give suggestions to policymakers

7.Research methodology

Research methodology is the general approach which will be used while conducting the present study. This research methodology refers systematically to solve the research problem above mentioned. It can be also defined as analysis of principles of methods rules and postulates employed by a discipline, and the systematic study of methods that are the main intention of the research to find out how change can be implemented effectively within an organization and to suggest some solutions to correct wrong issues (KHOTAR, 2004)

7.1Techniques

In research, techniques are the way used to collect data from the field. There are many ways of collecting data such as sample size, questionnaire, documentary, interview and so on. During this work, techniques that helped the researcher are the following:

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7.1.a. Documentary technique

This technique is used to collect information from written sources related to the topic like: Books, Journals, Brochures, Internet, Reports, archives and so on.

7.1.b. Interview technique

This technique use face to face or telephone by asking prepared questions to persons from the targeted institutions or groups. These questions are related to the research that is being undertaken.

7.2 Methods

The method is a set of intellectual operations which enable to analyze, to understand and to explain the analyzed reality or to structure the research. To conduct this research, the following methods used:

7.2.a. Statistical method

Statistical method is the application of statistical and mathematical methods in the field of economics to analyze and describe the numerical relationship between key economic variables (KHOTAR, 2005). The results of analysis are tables and figures estimated by a method of ordinary least squares (OLS), from the parameters of the model that we have identified.

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