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Commodity Export Diversification in Rwanda - Many Export Discoveries with Little Scaling-Up

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  • Chandra, Vandana
  • Li, Ying
  • Osorio Rodarte, Israel

Abstract

Increased diversification of commodity exports, and increased numbers of high-value commodity exports, are needed to generate employment and meet the Government of Rwanda´s targets for poverty reduction. This chapter presents evidence that increased diversification of exports is linked to increased export and GDP growth. Yet, commodity exports in Rwanda are concentrated in a few commodities. The relationship between export diversification and export growth in SSA confirms that for stable, sustainable, and higher export growth, export diversification is necessary. In addition to export promotion policies such as those which attract FDI, decision makers need to design policies to accelerate diversification of the export mix. The effect of diversification on export growth will be maximized if diversification shifts the export mix in the direction of manufactured or resource-based products (low or medium technology). This implies both sector specific public strategies that can influence the export mix; and second, public investments in human capital and supporting infrastructure.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18556.

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Date of creation: 12 Oct 2007
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Publication status: Published in Rwanda: Toward Sustained Growth and Competitiveness 37860.2(2007): pp. 160-190
Handle: RePEc:pra:mprapa:18556

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Keywords: Rwanda; economic growth; export diversification; structural transformation;

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  1. Pokar Khemani & Jack Diamond, 2005. "Introducing Financial Management Information Systems in Developing Countries," IMF Working Papers, International Monetary Fund 05/196, International Monetary Fund.
  2. Khalid Sekkat & Aristomène Varoudakis, 1998. "Exchange-Rate Management and Manufactured Exports in Sub-Saharan Africa," OECD Development Centre Working Papers 134, OECD Publishing.
  3. Diop, Ndiame & Brenton, Paul & Asarkaya, Yakup, 2005. "Trade costs, export development, and poverty in Rwanda," Policy Research Working Paper Series, The World Bank 3784, The World Bank.
  4. Joseph, K.J., 2002. "Growth of ICT and ICT for Development: Realities of the Myths of the Indian Experience," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Kawai, Masahiro & Takagi, Shinji, 2000. "Proposed strategy for a regional exchange rate arrangement in post-crisis East Asia," Policy Research Working Paper Series, The World Bank 2503, The World Bank.
  6. Dabalen, Andrew & Paternostro, Stefano & Pierre, Gaelle, 2004. "The returns to participation in the non-farm sector in rural Rwanda," Policy Research Working Paper Series, The World Bank 3462, The World Bank.
  7. Emmanuel Brou Aka & Bernardin Akitoby & Amor Tahari & Dhaneshwar Ghura, 2004. "Sources of Growth in Sub-Saharan Africa," IMF Working Papers, International Monetary Fund 04/176, International Monetary Fund.
  8. Jack Diamond & Pokar Khemani, 2005. "Introducing Financial Management Information Systems in Developing Countries," OECD Journal on Budgeting, OECD Publishing, OECD Publishing, vol. 5(3), pages 97-132.
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