Christine Uwimbabazi

The Contribution of Agricultural Exports to Economic Growth: Case Study of Rwanda Christine Uwimbabazi

The main objective of study is to examine the relationship between agricultural exports and economic growth in the long-run and short-run. Johansen approach coefficient proved that Rwandan agricultural exports do not have a significant relationship to economic growth in the long-run with the coefficient of agricultural exports that shows 1% of increase in agricultural exports which leads to 0.059% increase on economic growth. Errors Correction Model show that agricultural exports has a significant relationship to economic growth in the short-run with probability of agricultural exports (0.0000) less than 5% level of significance. Analysis has 66% speed of adjustment per year towards the long-run relationship from 1980 to 2012 in Rwanda. Therefore the government and stakeholders in agriculture should help and encourage the farmers to produce high quality product, guarantee the markets to farmers and enhance all necessary diversification of agricultural exports and encourage the farmers in modern agriculture. This book were reported to have agricultural exports significance to economic growth in Rwanda and the others investors be interested in agricultural exports.