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Agricultural growth and investment options for poverty reduction in Rwanda:

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  • Diao, Xinshen
  • Fan, Shenggen
  • Yu, Bingxin
  • Kanyarukiga, Sam

Abstract

"An economywide, multimarket (EMM) model was developed for Rwanda to analyze the linkages and trade-offs between growth and poverty reduction goals at both macro- and micro-economic levels. The model includes 30 agricultural commodities or commodity groups from eight broad agricultural subsectors, along with two aggregated nonagricultural sectors. The analysis compares the economic, income, and poverty effects of a variety of growth scenarios based on existing national subsector growth targets. The analysis shows 6 percent of CAADP's agricultural GDP growth target is achievable if growth reaches its target at the agricultural subsectoral level. But it is not enough for the country to achieve the MDG One, although the national poverty rate in 2015 will be 17 percent lower than that in 2005. Moreover, the household groups with the smallest landholding size, female-headed, or with few opportunities to participate cash crop production seem to benefit less from such growth. The study also examines the different growth-poverty linkages at agricultural subsector level, and shows that growth driven by productivity increases in staple crops and livestock production can reduce the poverty more than in the case where growth is driven by export crops or by the nonagricultural sector. The analysis also shows that to achieve growth required by CAADP and MDG One, the country needs to substantially beef up its public investment in agriculture. The share of agricultural spending in total government spending is required to increase from the current level of 5 percent to 10-35 percent in 2015." Authors' Abstract

Suggested Citation

  • 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).
  • Handle: RePEc:fpr:ifprid:689
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    References listed on IDEAS

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    Cited by:

    1. Johnson, M., 2014. "Exploring strategic priorities for regional agricultural research and development investments in Southern Africa," IWMI Working Papers H046297, International Water Management Institute.
    2. Ugo Pica-Ciamarra & Derek Baker & Nancy Morgan & Alberto Zezza & Carlo Azzarri & Cheikh Ly & Longin Nsiima & Simplice Nouala & Patrick Okello & Joseph Sserugga, 2014. "Investing in the Livestock Sector : Why Good Numbers Matter, A Sourcebook for Decision Makers on How to Improve Livestock Data," World Bank Other Operational Studies 17830, The World Bank.
    3. David Booth & Frederick Golooba-Mutebi, 2014. "Policy for Agriculture and Horticulture in Rwanda: A Different Political Economy?," Development Policy Review, Overseas Development Institute, vol. 32(s2), pages 173-198, September.
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    5. Brunori Paolo & Palmisano Flaviana & Peragine Vito, 2015. "Inequality of Opportunity During the Great Recession in Uganda," WIDER Working Paper Series 039, World Institute for Development Economic Research (UNU-WIDER).
    6. Diao, Xinshen & Hazell, Peter & Thurlow, James, 2010. "The Role of Agriculture in African Development," World Development, Elsevier, vol. 38(10), pages 1375-1383, October.
    7. Tugrul Temel, 2013. "Family Size, Human Capital And Growth: Structural Path Analysis Of Rwanda," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(4), pages 39-73, December.
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    9. Anson, Richard & Mogues, Tewodaj, 2016. "A systematic review of cross-country data initiatives on agricultural public expenditures in developing countries:," IFPRI discussion papers 1541, International Food Policy Research Institute (IFPRI).
    10. Asfaw, Solomon & Savastano, Sara, 2015. "Topic: Building Resilience to Climate Change Through Social Protection and Climate-Smart Agriculture: Synergies and Trade-offs," 2015 Conference, August 9-14, 2015, Milan, Italy 210963, International Association of Agricultural Economists.
    11. Rashid, Shahidur & Negassa, Asfaw, 2012. "Policies and performance of Ethiopian cereal markets," IFPRI book chapters,in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 5 International Food Policy Research Institute (IFPRI).
    12. Boulanger, Pierre & Dudu, Hasan & Ferrari, Emanuele & Mainar, Alfredo & Proietti, Ilaria, 2016. "Are input policies effective to enhance food security in Kenya? A CGE Analysis," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246954, African Association of Agricultural Economists (AAAE).
    13. 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.
    14. Boureima Sawadogo & Tegawende Juliette Nana & Maimouna Hama Natama & Fidèle Bama & Emma Tapsoba & Kassoum Zerbo, 2015. "Impact de l'expansion économique et commerciale de la Chine sur la croissance et l'emploi au Burkina Faso: une analyse en équilibre général calculable," Working Papers MPIA 2015-03, PEP-MPIA.
    15. 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).
    16. Temel, Tugrul, 2011. "Family planning, growth and income distribution in Rwanda: SAM multiplier and graph-theoretic path analysis," MPRA Paper 31394, University Library of Munich, Germany.
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    18. 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).
    19. Sahoo, Amarendra & Shiferaw, Bekele & Gbegbelegbe, Sika, 2016. "Economywide impacts of promising agricultural technologies on food security and welfare in Kenya," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246960, African Association of Agricultural Economists (AAAE).
    20. Wiebelt, Manfred & Pauw, Karl & Matovu, John Mary & Twimukye, Evarist & Benson, Todd, 2011. "Managing future oil revenues in Uganda for agricultural development and poverty reduction: A CGE analysis of challenges and options," Kiel Working Papers 1696, Kiel Institute for the World Economy (IfW).
    21. Omilola, Babatunde & Lambert, Melissa, 2010. "Weathering the storm," IFPRI discussion papers 965, International Food Policy Research Institute (IFPRI).
    22. Berhane, Guush & Mcbride, Linden & Hirfrfot, Kibrom Tafere & Tamru, Seneshaw, 2012. "Patterns in foodgrain consumption and calorie intake," IFPRI book chapters,in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 7 International Food Policy Research Institute (IFPRI).
    23. Xinshen Diao & Margaret McMillan, 2015. "Toward an Understanding of Economic Growth in Africa: A Re-Interpretation of the Lewis Model," NBER Working Papers 21018, National Bureau of Economic Research, Inc.
    24. Shenggen Fan & Joanna Brzeska, 2015. "The Nexus between Agriculture and Nutrition: Do Growth Patterns and Conditional Factors Matter?," Working Papers id:7519, eSocialSciences.
    25. Jean-Marc MONTAUD & Mahamadou Roufahi TANKARI, 2013. "When social goals meet economic goals: the double dividend of extending free access to healthcare in Uganda," Working Papers 2012-2013_8, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Jul 2013.

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    Keywords

    Agricultural growth; Poverty reduction; Growth dynamics; Public investment;

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