FOREIGN TRADE EVOLUTION IN RWANDA: SITUATION 1960- 2013

SYLVIE NIBEZA

Abstract


ABSTRACT

Foreign trade is historically the oldest and still important part of the external economic relationships. Its impact on the economic development of the individual countries has deepened considerably namely during the whole period after the Second World War.  Foreign trade has functions such as: Transformation function by which the Foreign trade changes (transforms) the structure of national production, national resources, into the demanded structure in the sphere of use (intermediate as well as final); and Economic Growth function connected to forming of the specialization profile of the economy, and that namely in the relatively small economies, where the structure of home economy is influenced considerably by the export efficiency and competitiveness of the given country products in international markets.

Rwanda is conscious of the incomparable importance of foreign trade and is engaged in this process of exporting and importing goods and services since the colonial period.

 

The present research aiming an overview of Rwanda’s Exports and Imports situation, targets to describe the evolution of foreign trade in Rwanda. It consists of a retro vision of foreign trade in Rwanda from 1960 to 2013, allowing further researchers to highlight key actions that Rwanda has to take in order to reach its goals of passing from low income country to middle income country. Using Qualitative and Quantitative methods and data taken from the World Bank, the research found three main periods characterizing foreign trade in Rwanda: 1960- 1986 where imports and exports increased at a normal rhythm with imports greater than exports; 1986- 1995 where exports decreased considerably and imports increased considerably surpassing the five times exports; and 1995- 2013 where exports and imports restarted increasing together despite the imports were and continue to be greater than exports. This situation leads the Government of Rwanda putting efforts to raise exports by several mechanisms such as motivating private sector investing in market oriented productions.

 

Key Words: Balance of Trade, Exports, Foreign Trade, Foreign Trade Evolution, Imports, International Trade.

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ISSN : 2251-1555