Developing Country Economic Growth Discussion – Rwanda


The output per capita of Rwanda is 570 and the population growth was 2.63% in 2014. Rwanda has comparative advantages in many products lines, which number to 294. One of the boosters of Rwanda is the products and the country just has to increase them to improve on their trade. Coffee, tourism and tea are some of the most successful exports in Rwanda (Diao, et al., 2015). Rwanda is a country that exhibits a comparative advantage in the trade it carries out alongside other countries in COMESA and the world trade organization (WTO).

Rwanda is an open economy that encourages more trade by reducing tariffs and barriers to tariffs that are few. The measures make Rwanda a company of choice to investors since setting up of businesses is easier and capital can flow in and out of the country easily.

Rwandan foreign exchange is overvalued, which sometimes has a negative effect since it leads to a negative linkage between inflows and growth. The strong foreign exchange ensures that Rwanda gets exports more cheaply. Rwanda therefore as a country is on the way of success in terms of managing the various economic sectors to increase profitably and grow the economy. The country can focus on the various product lines and ensure that more of them are produced in sufficient quantities to increase exports and production for the local people. The country has a comparative advantage and it can use it to the maximum to ensure that it profits greatly as it trades international and regionally. The cash crops are mainly for the foreign markets while most of the agricultural production helps to sustain the local citizens of Rwanda. Rwanda is therefore a country that is capable of growing its economy rapidly due to the conducive environment provided by the government.

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