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Trade costs, export development, and poverty in Rwanda

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Author Info

  • Diop, Ndiame
  • Brenton, Paul
  • Asarkaya, Yakup

Abstract

For Rwanda, one of the poorest countries in the world, trade offers the most effective route for substantial poverty reduction. But the poor in Rwanda, most of whom are subsistence farmers in rural areas, are currently disconnected from markets and commercial activities by extremely high transport costs and by severe constraints on their ability to shift out of subsistence farming. The constraints include lack of access to credit and lack of access to information on the skills and techniques required to produce commercial crops. The paper is based on information from the household survey and a recent diagnostic study of constraints to trade in Rwanda. It provides a number of indicative simulations that show the potential for substantial reductions in poverty from initiatives that reduce trade costs, enhance the quality of exportable goods, and facilitate movement out of subsistence into commercial activities.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3784.

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Date of creation: 01 Dec 2005
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Handle: RePEc:wbk:wbrwps:3784

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Related research

Keywords: Crops&Crop Management Systems; Rural Poverty Reduction; Rural Development Knowledge&Information Systems; Economic Theory&Research; Poverty Monitoring&Analysis;

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References

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  1. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  2. Mark Rosenzweig & Andrew D. Foster, . "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania.
  3. Deaton, Angus, 1989. "Rice Prices and Income Distribution in Thailand: A Non-parametric Analysis," Economic Journal, Royal Economic Society, vol. 99(395), pages 1-37, Supplemen.
  4. Timothy G. Conley & Christopher R. Udry, 2000. "Learning About a New Technology: Pineapple in Ghana," Working Papers 817, Economic Growth Center, Yale University, revised May 2004.
  5. Dabalen, Andrew & Paternostro, Stefano & Pierre, Gaelle, 2004. "The returns to participation in the non-farm sector in rural Rwanda," Policy Research Working Paper Series 3462, The World Bank.
  6. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  7. repec:nbr:nberwo:11175 is not listed on IDEAS
  8. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
  9. Timothy Besley & Anne Case, 1994. "Diffusion as a Learning Process: Evidence from HYV Cotton," Working Papers 228, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  10. Petra E. Todd & Jeffrey A. Smith, 2001. "Reconciling Conflicting Evidence on the Performance of Propensity-Score Matching Methods," American Economic Review, American Economic Association, vol. 91(2), pages 112-118, May.
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Citations

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Cited by:
  1. Kym Anderson & Johan Swinnen, 2008. "Distortions to Agricultural Incentives in Europe's Transition Economies," World Bank Publications, The World Bank, number 6502.
  2. World Bank, 2007. "Rwanda : Toward Sustained Growth and Competitiveness, Volume 2. Main Report," World Bank Other Operational Studies 7702, The World Bank.
  3. Barry Boubacar-Sid & Edward G.E. Creppy & Estanislao Gacitua-Mario & Quentin Wodon, 2007. "Conflict, Livelihoods, and Poverty in Guinea-Bissau," World Bank Publications, The World Bank, number 6879.
  4. Barry, Boubacar-Sid & Creppy, Edward & Wodon, Quentin, 2007. "Cashew Production, Taxation, and Poverty in Guinea-Bissau," MPRA Paper 11181, University Library of Munich, Germany.
  5. Anderson, Kym & Kurzweil, Marianne & Martin, William J. & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Methodology for Measuring Distortions to Agricultural Incentives," Agricultural Distortions Working Paper 48326, World Bank.
  6. Chandra, Vandana & Li, Ying & Osorio Rodarte, Israel, 2007. "Commodity Export Diversification in Rwanda - Many Export Discoveries with Little Scaling-Up," MPRA Paper 18556, University Library of Munich, Germany.
  7. Aksoy, M. Ataman & Isik-Dikmelik, Aylin, 2007. "The role of services in rural income : the case of Vietnam," Policy Research Working Paper Series 4180, The World Bank.

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