Financial Systems and Economic Growth In Selected Microfinance Institutions In Rusizi District, Rwanda:
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Date
2011-09
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
In this study researcher investigated the relationship between effectiveness of
financial systems and economic growth in selected MFI5 in Rusizi District Rwanda. It
was carried out with the specific objectives to determine the profile of the respondents
as to age, gender, highest level of education, and professional experience, determine
the level effectiviness of financial systems in selected microfinance institutions,
determine, the level of economic growth, and lastly, to establish relationship between
the effectiveness of financial systems and economic growth in selected MFIs in Rusizi
District, Rwanda
The study was conducted though the uses of descriptive survey design and
involved quantitative approach. SLOVEN’s formula was also used to determine a sample
size of 174 respondents from 250 targeted populations and the sampling was done by
the use stratified random sampling technique. Self administered questionnaires were
used as research instrument and Content validity Index was used to ensure validity and
reliability of research instruments. The ensured the ethical and logistic considerations of
research and both qualitative and quantitatively were used to analyze data using
statistical techniques such as mean and Pearson correlation matrix.
Findings indicated that financial systems in terms of levels of loans in selected
MFIS is still low with average mean of 2.43; level of economic growth in form of level of
income and capital accumulation is high with average mean of 2.62. Findings also
indicate positive significant relationship between financial systems and economic growth
(r =.794, P< .000) at .05 level of significance.
The study concludes that there is a positive significant relationship between
Effectiveness of financial systems and economic growth.
The study therefore recommends that Micro Finance umbrella organization be
established and given strong support by Government and donors as a body to give
guidance to the industry.
Description
A Thesis
Presented to the School of
Postgraduate Studies and Research
Kampala International University
Kampala, Uganda
In Partial Fulfillment of the Requirements for the Degree
Master of Business Administration.
Keywords
Financial Systems, Economic Growth, Microfinance Institutions, Rusizi District, Rwanda