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Trade costs, export development, and poverty in Rwanda

Author

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  • 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.

Suggested Citation

  • Diop, Ndiame & Brenton, Paul & Asarkaya, Yakup, 2005. "Trade costs, export development, and poverty in Rwanda," Policy Research Working Paper Series 3784, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3784
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    Citations

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    Cited by:

    1. 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, July.
    2. 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.
    3. Kym Anderson & Johan Swinnen, 2008. "Distortions to Agricultural Incentives in Europe's Transition Economies," World Bank Publications, The World Bank, number 6502, July.
    4. 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.
    5. World Bank, . "Rwanda : Toward Sustained Growth and Competitiveness, Volume 2. Main Report," World Bank Other Operational Studies, The World Bank, number 7702, September.
    6. Anderson, Kym & Kurzweil, Marianne & Martin, William J. & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Methodology for Measuring Distortions to Agricultural Incentives," Agricultural Distortions Working Paper Series 48326, World Bank.
    7. Barry, Boubacar-Sid & Creppy, Edward & Wodon, Quentin, 2007. "Cashew Production, Taxation, and Poverty in Guinea-Bissau," MPRA Paper 11181, University Library of Munich, Germany.
    8. Van Der Sluis, E. & Durowah, O., 2018. "Aid for Trade and Foreign Direct Investment: Effects on Poverty Reduction," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277307, International Association of Agricultural Economists.

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    More about this item

    Keywords

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