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The role of agriculture in the fast-growing Rwandan economy: Assessing growth alternatives

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  • Diao, Xinshen
  • Bahiigwa, Godfrey
  • Pradesha, Angga

Abstract

This study assesses the future growth prospects of Rwanda. The report first focuses on broad economic growth using a rather aggregated 18-sector dynamic general equilibrium model to display the trade-off between rapid growth and structural change. The analysis shows that with the current investment pattern, rapid growth is possible but structural transformation is slow. With an overvalued exchange rate, growth in the tradable sector slows down and its share in the economy stays small. The importance of agriculture thus should be considered in the broad development strategy, for its role not only in poverty reduction but also in economic growth.

Suggested Citation

  • Diao, Xinshen & Bahiigwa, Godfrey & Pradesha, Angga, 2014. "The role of agriculture in the fast-growing Rwandan economy: Assessing growth alternatives," IFPRI discussion papers 1363, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1363
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    File URL: https://hdl.handle.net/10568/150433
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    References listed on IDEAS

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    5. 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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    Cited by:

    1. Evariste Rutebuka & Lixiao Zhang & Ernest Frimpong Asamoah & Mingyue Pang & Emmanuel Rukundo, 2018. "Resource Dynamism of the Rwandan Economy: An Emergy Approach," Sustainability, MDPI, vol. 10(6), pages 1-19, May.
    2. Diao, Xinshen & McMillan, Margaret S., 2014. "Towards understanding economic growth in Africa: A reinterpretation of the Lewis Model," IFPRI discussion papers 1380, International Food Policy Research Institute (IFPRI).
    3. Diao, Xinshen & McMillan, Margaret, 2018. "Toward an Understanding of Economic Growth in Africa: A Reinterpretation of the Lewis Model," World Development, Elsevier, vol. 109(C), pages 511-522.

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