Ndagijimana Jabo Felix - Rwanda
Wahyu Widodo - Department of Economics, Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia

This study investigated the multifaceted effect of foreign direct investment on poverty rate in Rwanda by considering also the influence of political stability , employment opportunities and trade openness. This study applied ARDL(autoregressive distributed lag model) and Error correction model (ECM) for econometric analysis with time series data from ۱۹۹۴-۲۰۲۲. The study showed a mixed results. From the results, foreign direct investment ,political stability and employment reported a significant negative effect on poverty rate in the long run meaning they play a crucial role in reduction of poverty rate in Rwanda but both reported a significant positive effect on poverty rate in Rwanda in short run meaning both doesn’t contribute in poverty rate alleviation in short run. The study also reported a significant positive effect of trade openness on poverty rate in the long run indicating that trade openness doesn’t help to reduce poverty rate. However, a significant negative effect of trade openness on poverty rate was recorded in short run suggesting a strong contribution of trade openness on poverty rate reduction in Rwanda in short run.

Poverty rate, Foreign direct investment, Political stability, ARDL