The Causal Links between FDI and Economic Growth in Developing Countries: A Case Study of the Republic of Rwanda

The study examines the short-run and long-run causality running from real economic growth to real foreign direct investment inflows (RFDI). Other variables such as education (involving combination of primary, secondary and tertiary enrolment as a proxy to education), real development finance, unskilled labour, to real RFDI inflows are included in the study. The time series data covering the period of 1983 -2013 are examined. First, I applied Augmented Dicky-Fuller (ADF) technique to test for unit root in variables. Findings shows all variables integrated of order one [I(1)]. Thereafter, Johansen Co-integration Test (JCT) was conducted to establish the relationship among variables. Both trace and maximum Eigen value at 5% level of significance indicate 3 co-integrated equations. Vector error correction method (VECM) was applied to capture short and long-run causality running from education, economic growth, real development finance, and unskilled labour to real foreign direct investment inflows in the Republic of Rwanda. Findings shows no short-run causality running from education, real development finance, real GDP and unskilled labour to real FDI inflows, however there were existence of long-run causality. This can be interpreted that, in the short-run; education, development finance, finance and economic growth does not influence inflows of foreign direct investment in Rwanda; but it does in long-run. From the policy perspective, the Republic of Rwanda should focus more on long term goal of investing in education to improve human capital, undertake policy reforms that promotes economic growth, in addition to promoting good governance to attract development finance – especially from Nordics countries (particularly Norway and Denmark).

An empirical study of the variability in the composition of British freight trains

As part of the broader sustainability and economic efficiency agenda, European transport policy places considerable emphasis on improving rail’s competitiveness to increase its share of the freight market. Much attention is devoted to infrastructure characteristics which determine the number of freight trains which can operate and influence the operating characteristics of these trains. However, little attention has been devoted to the composition of the freight trains themselves, with scant published data relating to the practicalities of this important component of system utilisation and its impacts on rail freight viability and sustainability. This paper develops a better understanding of the extent to which freight train composition varies, through a large-scale empirical study of the composition of British freight trains. The investigation is based on a survey of almost 3,000 individual freight trains, with analysis at four levels of disaggregation, from the commodity groupings used in official statistics down to individual services. This provides considerable insight into rail freight operations with particular relevance to the efficiency of utilisation of trains using the available network paths. The results demonstrate the limitations of generalising about freight train formations since, within certain commodity groupings, considerable variability was identified even at fairly high levels of disaggregation.