Trade Costs, Export Development and Poverty in Rwanda

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 c...

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Bibliographic Details
Main Authors:	Diop, Ndiame, Brenton, Paul, Asarkaya, Yakup
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO ELECTRICITY ACCESS TO HEALTH SERVICES ACCESS TO INFORMATION ACCESS TO KNOWLEDGE ACCESS TO MARKETS AGRICULTURAL ECONOMICS AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL PRICES AGRICULTURAL PRODUCTS BEANS CASH CROPS CASSAVA CHERRIES COFFEE COFFEE CROP COFFEE FARMERS COFFEE GROWERS COFFEE MARKETS COFFEE PRODUCER COFFEE PRODUCERS COFFEE PRODUCTION COFFEE SECTOR COFFEE TREES COMMERCIAL AGRICULTURE COMMERCIAL CROPS COMMERCIAL FARMERS COMMERCIALIZATION CONSUMERS COOPERATIVES COTTON COTTON PRODUCTION COUNTERFACTUAL CROP DETERMINANTS OF POVERTY DEVELOPMENT POLICY DRY BEANS EXPORT BARRIERS EXPORTS EXTENSION EXTENSION SERVICES EXTERNALITIES FARM FARM HOUSEHOLDS FARM SECTOR FARM-GATE FARMER FARMERS FARMING FARMS FERTILIZER FOOD CROPS FOOD EXPENDITURES FOOD PRODUCTS FULL EMPLOYMENT GENDER HOUSEHOLD BUDGET HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SIZE HOUSEHOLD SURVEYS HOUSING HUMAN CAPITAL IFPRI INCIDENCE OF POVERTY INCOME DISTRIBUTION INCOME SHARES INCREASING RETURNS INDUSTRIAL CROPS INTEGRATION LABOR MARKET ACTIVITIES LABOR MARKETS LACK OF KNOWLEDGE LAND LAW LAND SIZE LANDLESS PEOPLE LEARNING LIVESTOCK LIVESTOCK INCOME MARKETING MATCHING METHODS MICRO-CREDIT MULTIPLIER EFFECTS MULTIPLIERS NATIONAL POVERTY NATIONAL POVERTY HEADCOUNT NEW TECHNOLOGIES PER CAPITA INCOME POLITICAL ECONOMY POOR BENEFIT POOR FARMER POOREST HOUSEHOLDS POVERTY GAP POVERTY IMPACT POVERTY IMPACTS POVERTY INCIDENCE POVERTY LINE POVERTY REDUCING POVERTY REDUCTION POVERTY REDUCTION STRATEGY POVERTY STATUS PRICE PREMIUM PRODUCE PROGRAMS QUALITY COFFEE REAL INCOME RICE RICE PRICES RURAL AREA RURAL AREAS RURAL COMMUNITIES RURAL DEVELOPMENT RURAL ECONOMY RURAL FARMERS RURAL HOUSEHOLDS RURAL INCOMES RURAL INFRASTRUCTURE RURAL SECTOR SHEEP SMALL FARMERS SMALL FARMS SMALL SCALE FARMERS SORGHUM STRUCTURAL TRANSFORMATION SUB-SAHARAN AFRICA SUBSISTENCE SUBSISTENCE AGRICULTURE SUBSISTENCE FARMERS SWEET POTATOES TARGETING TEA TECHNICAL ASSISTANCE TRADE LIBERALIZATION WAGE RATES WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2005/12/6450677/trade-costs-export-development-poverty-rwanda http://hdl.handle.net/10986/8586

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Summary:	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.

Trade Costs, Export Development and Poverty in Rwanda

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