CONTRIBUTION OF AGRICULTURAL EXPORT TO ECONOMIC GROWTH IN RWANDA: THE CASE OF COFFEE, TEA AND FLOWERS | Journal of Economics and Trade
Agricultural products export is considered as a development engine for Rwanda's overall economy, but despite these efforts, the sector is nevertheless characterised by poor yields, low input levels, and limited cultivation areas due to the government's reliance on mono-cultural economy. This research attempts to investigate the significance of agricultural exports to Rwanda's economic growth. The panel of data used came from the Central Bank of Rwanda's statistical bulletin and the National Agricultural Development Board (NAEB). Multiple regression was used to analyse the data, and the results showed a positive relationship between agricultural export and GDP (domestic saving, government expenditure on agriculture, and foreign direct investment) over the time period studied 2013-2016. Domestic Savings, Government Expenditure, and Foreign Direct Investment accounted 81 percent, 62 percent, and 41 percent of the difference in GDP for tea, coffee, and flowers, respectively, according to the research. To improve the agricultural sector, it is recommended that the government provide more funding to Rwandan agricultural universities so that they can conduct research on all aspects of agricultural production. This will result in more exports and a boost in Rwandan agriculture's competitiveness in international markets. The Rwandan Central Bank should also develop a consistent strategy for disbursing loans to farmers at a reasonable interest rate. Please see the link :- https://www.ikprress.org/index.php/JET/article/view/99