Impact of Private Investment On Economic Growth of Burundi (2000-2015)

ABSTRACT

This research report was set out to investigate the impact private investment on economic growth (measured by GDP) in Burundi (2000-2015), the study employed time series survey data. its objectives were to; Examine the trend of private investments in Burundi, Establish the trend of economic growth of Burundi through its GDP and Assess the impact of private investments on economic growth of Burundi. The hypothesis of the study was there is no significant relationship bet~’een private investment and GDP growtb in Burundi. Time series analysis such as Correlation analysis and regression analysis mechanisms were used. The trend of private investment and GDP growth showed a general increase for years from 2095 to 2009.However there has been a decline since 2014. Using the correlation and regression approach, there was a strong positive correlation between Private investment and GDP growth(rvO.58), there was also siguificant relationship between the two variables at 0.05 level of significance). In conclusion the research revealed that private investment accounts hugely for the economic growth of Burundi. Finally recommendations suggested that there is need for peace as apriority in Burundi if investments are to be realized as it used to be before. Further the government needs to review its taxation policies so as to attract more investors.