In most the countries of Sub-Saharan Africa (where geographical Rwanda is located), the process of industrialization has not been taken off in any significant way. The important role of industrialization in economic growth and structural transformation has been recognized by extensive empirical literature and evidence. The East Asian experience over the last three decades showed how, in a globalizing world, the Foreign Direct Investment inflows can help leverage investment to upgrade and diversify industrial structures of host countries. One instance could be the Four Asian Tigers were the first economies to take advantage of this rise in globalization and Foreign Direct Investment flows in the 1980s, followed by China in the 1990s, and Vietnam, Cambodia, and others in the 2000s.
　　All of these arguments cause to find out if there is really the great impact of FDI inflows on the technological structure of exports in Rwanda during the period of 1987-2017. The relationship between FDI inflows and the exports in the host country particularly in developing countries is a hot topic in the international business area, in this thesis;the researcher has been explored a better way of utilizing FDI inflows in Rwanda and optimizing its technological structure of exports from the point of how FDI inflows affect Rwanda’s technological structure of exports.
　　The aim of this study was to quantify and explain how Foreign Direct Investment inflows play an active role in optimizing the technological structure of Rwanda’s export products. Therefore, this research had objectives as follows:
　　The first objective of the research was to determine how the FDI inflows are contributed to high-technological manufactured exports of Rwanda. The findings have shown that the Foreign Direct Investment inflows Granger Causality and Wald Test cause bi-directional with high-technological manufacturing of exports at a 1% level of significance while FDI inflows cause high-technological manufacturing of exports at 5% in short-run as confirmed with the results summary of the Granger Causality Test (VAR model).
　　The second objective was to find out if there is any relationship between Foreign Direct Investment inflows and exports structure of Rwanda, they have bi-directional causality effect between them as the findings have shown that the total exports structure have causality effects on FDI inflows at 1% and 0.1% level of significance and also FDI inflows have significance causality effects on total exports structure at 5% level as confirmed with Granger Causality Wald Tests. While the third objective was to examine the impact of the FDI inflows on the total goods exports of Rwanda. The findings have shown that the results are gotten from data Granger causality analysis clarify that there are long-run causality effect and short convergent to long-run equilibrium in the total goods exports and Foreign Direct Investment inflows equations result, their t-statistics of ECTt-1 is significant (at the probability-value of the chi2 statistic<0.05 and probability-value of the chi2 statistic<0.01 level of significant respectively), although the high-technological manufacturing causes to the total goods exports, Foreign Direct Investment inflows and exports structure in the short-run causality at the significant level of 5%, 5%&1%and 5%severally.
　　In this model, Johansen normalization restriction imposed that in the long-run, Foreign Direct Investment inflows and high-technological manufacturing have a negative impact while exports structure has a positive impact on the total goods exports. The coefficients are statistically significant at the 1%level. Both Foreign Direct Investment inflows&high-technological manufacturing and exports structure have asymmetric effects on the total goods exports in the long-run, on average, ceteris paribus.