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Family Planning, Growth, Income Distribution: Graph-Theoretic Path Analysis Of Rwanda

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  • TUGRUL TEMEL

    () (ECOREC Economic Research and Consulting, Netherlands)

Abstract

This paper explores macroeconomic linkages among family planning, human capital and economic growth in Rwanda. Based on a disaggregated social accounting matrix (SAM), welfare effects of alternative exogenous injections are investigated, and the high and low-income pathways are identified by graph-theoretic path analysis. Three important findings follow from the analysis. First, rural income gains spread over the entire economy, while urban income gains are largely contained within urban areas. This suggests a relatively larger income multiplier effect of rural investments. Second, investing in family planning and health promotes agricultural production, with a considerable rural employment effect. Thus, targeted rural investment should yield economic growth followed by an improvement in income equality. Third, a unit increase in the consumption of family planning and health commodities is respectively associated with 1.3 unit, 1.2 unit and 0.74 unit increase in the agricultural, service and manufacturing production; It further generates 60% more income for the urban-Kigali households than rural households. To sum up, benefits of investing in family planning-health should not be overlooked in terms of improvement in rural employment, agricultural production and poverty reduction.

Suggested Citation

  • Tugrul Temel, 2014. "Family Planning, Growth, Income Distribution: Graph-Theoretic Path Analysis Of Rwanda," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(1), pages 1-45, March.
  • Handle: RePEc:jed:journl:v:39:y:2014:i:1:p:1-45
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    References listed on IDEAS

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    1. Gary S. Becker & Kevin M. Murphy & Robert Tamura, 1994. "Human Capital, Fertility, and Economic Growth," NBER Chapters,in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 323-350 National Bureau of Economic Research, Inc.
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    6. Diao, Xinshen & Fan, Shenggen & Yu, Bingxin & Kanyarukiga, Sam, 2007. "Agricultural growth and investment options for poverty reduction in Rwanda:," IFPRI discussion papers 689, International Food Policy Research Institute (IFPRI).
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    More about this item

    Keywords

    Family Planning; Fertility; Human Capital; Growth; Income Distribution; Graph-Theory; Path Analysis; SAM Multiplier; Rwanda;

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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