3.4. Model designing for the purpose of analysis
3.3.1. Logistic Regression
Analysis
Before making comparative study of GDP between years due to
increase or decrease in Agriculture production, Industry production, Services
production, and Adjustment (VAT and other taxes on product less imputed bank
service change) based on Logistic Regression I will transform my available
data using Natural Logarithmic transformation. The regression analysis of GDP
will help to understand the progress of GDP basing on production approach.
The increase in GDP indicates the good life of the economy and
GDP is also use in the computation of Human Development index.
The following model will be used:
(GDP)=f (Agriculture, Industry, Services and
Adjustment)
3.3.2. SUT linear model
Analysis
Due to technical reasons that include huge informal and
non-monetary (about 65% of the economy in 2006) and data availability among
others, in Rwanda, National accounts are only compiled using the out-put/
production approach. On other hand as far as the expenditure approach is
concerned, it is only the final household expenditure that can not be measured
on yearly basis.
Along this study SUT linear model will be developed in order
to perform the above Analyses. This SUT linear Model will be analyzed under
Supply and Use Identity using two derivable Linear Models «Unit of
measurement Billion Frw»:
· Gross Domestic Product By Kind of Activity at Current
and Constant 2006 prices.
· Expenditure on Gross Domestic Product in Constant 2006
prices
3.3.3. Human Development Index
Analysis
This analysis will show trend of HDI from 1980 to 2010. The
HDI depends on Gross National Income per capita, literacy, and life
expectancy.
To the link of Supply and Use Tables, GNI per capita is the
fruit of SUT (GNI=GDP- Transfers), literacy and life expectancy are also
influenced by the GDP. The analysis of HDI will lead to the general conclusion,
because this indicator is a composite indicator includes population impact.
A link from National accounts to satellite accounts will be
made using System of National Health Accounts where life expectancy will be
taken into account, Education satellite Account where Literacy level will be
taken into account and Environment Satellite Account where Tourism and
Environment pollution will be taken into account. This analysis will use also
indicators ranging in the period of 1980 to 2009, such as Gini coefficient,
Human poverty index, Population in Good Hygienic Conditions and, Urban
population.
| 
