Tax policy and foreign direct investment in Rwanda between 2008-2012, a case of Kigali city:
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Date
2014-02
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management.
Abstract
This study determined the relationship between tax policy and foreign direct investment in Kigali
City, Rwanda. In order to achieve the purpose of the study, three research objectives were
formulated and these included: To determine effectiveness of tax policy in Rwanda; to determine
the level of foreign direct investment in Kigali; and to establish whether there was a significant
relationship between tax policy and foreign direct investment in .Kigali city, Rwanda.
The research design used in this study was the descriptive correlation design. The research
population was 180 from which 125 respondents were determined using Slovene’s formula. The
method of sampling used was purposive sampling and questionnaires were used as the main data
collection tool. To ensure validity and reliability of the research instruments, content validity
index was done together with pretesting. The data collected was analyzed both qualitatively
(mean, correlation and regression coefficient) and quantitatively and this was done with the help
SPSS.
The research findings showed that the tax policy in. Rwanda was generally effective (overall
average mean of 2.58); the level of foreign direct investment in the country was also highly rated
(overall mean average of 2.67); and it was also found out that tax policy is positively correlated
with the foreign direct investment at (R. ~0.692, and significant value of 0.000).
It was then concluded that the tax policy in Rwandá is generally high; the level of foreign direct
investment in the country is also high; and that there is a significant relationship between tax
policy and foreign direct investment in Kigali city, Rwanda.
Since the two study variables (tax policy and foreign direct investment) were found to be
significantly related, it was recommended that the ministry of finance and economic planning
should revise different areas of tax policy and amend areas that discourage foreign direct
investment in the country.
Description
a research report presented to the school of economics and applied statistics Kampala international university Kampala, Uganda in partial fulfillment of the requirements for the bachelor of arts in economics.
Keywords
Tax Policy, foreign direct investment