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Family Size, Human Capital And Growth: Structural Path Analysis Of Rwanda

  • TUGRUL TEMEL

    ()

    (ECOREC Economic Research and Consulting, Netherlands)

This paper analyzes the macroeconomic role that different household groups play in human capital formation, sectoral growth and income distribution in Rwanda. Using a disaggregated SAM for Rwanda and, with the assistance of structural path analysis, the paper explores the macroeconomic implications of family size for human capital, sectoral growth and income distribution. The findings support the so-called quantity-quality trade-off hypothesis: the smaller the family size, the higher the investment in human capital. In particular, the human capital investment of households with 1-3 children tends to be more pronounced than that of households with more than 3 children. Moreover, households with 1-3 children act as an important intermediate pole transmitting the influence of human capital investment on agricultural production. As a result, promoting family planning programs seems to be a viable strategy for economic growth and poverty reduction.

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File URL: http://www.jed.or.kr/full-text/38-4/2.pdf
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Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 38 (2013)
Issue (Month): 4 (December)
Pages: 39-73

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Handle: RePEc:jed:journl:v:38:y:2013:i:4:p:39-73
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  7. Rosenzweig, Mark R. & Zhang, Junsen, 2006. "Do Population Control Policies Induce More Human Capital Investment? Twins, Birthweight, and China's 'One Child' Policy," IZA Discussion Papers 2082, Institute for the Study of Labor (IZA).
  8. Defourny, Jacques & Thorbecke, Erik, 1984. "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 94(373), pages 111-36, March.
  9. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
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  11. Diao, Xinshen & Fan, Shenggen & Kanyarukiga, Sam & Yu, Bingxin, 2010. "Agricultural growth and investment options for poverty reduction in Rwanda:," Research reports Xinshen Diao, et al., International Food Policy Research Institute (IFPRI).
  12. David E. Bloom & David Canning & Jaypee Sevilla, 2001. "Economic Growth and the Demographic Transition," NBER Working Papers 8685, National Bureau of Economic Research, Inc.
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  16. Joshua D. Angrist & Victor Lavy & Analia Schlosser, 2005. "New Evidence on the Causal Link Between the Quantity and Quality of Children," NBER Working Papers 11835, National Bureau of Economic Research, Inc.
  17. James, Jeffrey & Khan, Haider, 1997. "Technology choice and income distribution," World Development, Elsevier, vol. 25(2), pages 153-165, February.
  18. Ansoms, An, 2008. "A green revolution for Rwanda? The political economy of poverty and agrarian change," IOB Discussion Papers 2008.06, Universiteit Antwerpen, Institute of Development Policy and Management (IOB).
  19. St-Hilaire, France & Whalley, John, 1987. "A Microconsistent Data Set for Canada for Use in Regional General Equilibrium Policy Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 33(3), pages 327-43, September.
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  21. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
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