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Sources of Growth in Post-Conflict Burundi: From Destruction to Production

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  • Nganou, Jean-Pascal
  • Kebede, Ephraim

Abstract

Burundi, a small fragile economy, went through sporadic civil war since its independence in 1962 during which rampant insecurity had adverse impact on the country’s social and economic development. While Burundi is agriculturally rich, high rate of growth of rural population places overwhelming pressure on limited land resources. It is widely recognized that without significant growth in agriculture it will be virtually impossible to address poverty reduction. Given the high population density and limited off-farm employment opportunities, enhancing agriculture productivity is key for sustainable economic growth and improving the living standard of rural families. This paper highlights the importance of: - Improved technology packages (at the production, post-harvest, processing and marketing stages). - Building the capacity of producers’ organizations. - Irrigation development (marshland irrigation systems) and conservation measures. - Basic rural infrastructure (feeder roads). - Increasing the production and improving the processing and marketing of high value export crops (coffee and tea) and diversifying agricultural exports (horticulture). To examine the roles of aforementioned factors, the paper employs a structural composition model. In so doing, it provides quantitative evidence that Burundi’s economic growth is largely determined by total factor productivity (TFP), which in turn is affected by macroeconomic policies and stability, and infrastructural and institutional quality.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43577.

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Date of creation: Jun 2012
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Handle: RePEc:pra:mprapa:43577

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Keywords: Agriculture; Burundi; Productivity; Sources of growth; World Bank;

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  1. Beck, T.H.L. & Levine, R. & Loayza, N., 2000. "Financial intermediation and growth: Causality and causes," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125519, Tilburg University.
  2. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
  3. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
  4. Stanley Fischer, 1993. "The Role of Macroeconomic Factors in Growth," NBER Working Papers 4565, National Bureau of Economic Research, Inc.
  5. Dhaneshwar Ghura & Michael T. Hadjimichael, 1996. "Growth in Sub-Saharan Africa," IMF Staff Papers, Palgrave Macmillan, vol. 43(3), pages 605-634, September.
  6. Robert J. Barro, 1996. "Determinants of Economic Growth: A Cross-Country Empirical Study," NBER Working Papers 5698, National Bureau of Economic Research, Inc.
  7. Sanjeev Gupta & Catherine A. Pattillo & Kevin Joseph Carey, 2005. "Sustaining Growth Accelerations and Pro-Poor Growth in Africa," IMF Working Papers 05/195, International Monetary Fund.
  8. Harald Beyer & Rodrigo Vergara, 2002. "Productivity and Economic Growth: The Case of Chile," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.), Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 10, pages 309-342 Central Bank of Chile.
  9. Abdelhak Senhadji, 2000. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Staff Papers, Palgrave Macmillan, vol. 47(1), pages 6.
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