Impact and influence of international trade on economic growth and on small and medium enterprises of rwanda since 2000 to 2016

Abstract

More economists consider that trade is the instrument of development in modern societies. They assert that international trade offers the possibility of assistance in the field of financial assistance. As Rwanda participates in international trade and as it wants to base it on the potentials of international trade and become a middle income country. Small and Medium Enterprises (SMEs) are essential to monetary expansion and are essential to generate profits. Therefore, the small and medium enterprises have a large degree of entrepreneurship. This research quotthe impact and influence of international trade on economic growth and small and medium enterprises of Rwanda since 2000 to 2016quot aims at assessing the international trade and expansion of SMEs. To achieve them, we gather the data of the different employers and their employees. Data were possessed with structured and unstructured survey. The results from the field were polled SPSS that gave the frequency allocations, means, standard deviation, anova and so on. In Rwanda, SMEs have performed under conditions of low and high levels costs of transport, nonattendance of initiative of creativity, low capacity of doing research and development and advertising in their businesses etc. For secondary data, this study based on selected variables of Rwanda, and we performed a regression by using tools of econometrics (Eviews 9). Research findings revealed that the determinants of the term of trade of Rwanda are the nominal and real exchange rate, the rate of investment, the level of investment, the fiscal policy and the degree of closeness. The results also show that increase in investment makes Rwandan products more competitive in foreign markets. The depreciation of Rwandan currency depreciates the term of trade of Rwanda. The research also reveals that increase in domestic prices makes Rwandan products less competitive on foreign markets. Increase in the degree of closeness of Rwanda affects negatively its aggressiveness in international trade and vice versa.