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Paper ID: 105

Is Agriculture an Engine of Economic Reconstruction and Development in The Case of The Republic of Burundi?

J B Aboyitungiye and D Prasetyani

Departement of economics and Development Studies, Sebelas Maret University Jl. Ir. Sutami 36 A Surakarta 57126, Jawa Tengah Indonesia.

Email: aboy@student.uns.ac.id

Despite its importance for the economy, the agricultural sector faces many constraints that hamper its growth. Concomitantly with the increase in the world population and the demand for food production, farmers are faced with the need to produce more with less arable land. This study used the ARDL approach to model the long-term and short-term dynamics and propose examining the agricultural sector’s contribution to Burundi’s economic growth. Econometric estimations revealed that the gross domestic product per capita, agricultural, and exports (value-added) have long-run relationships but at different levels. The study, therefore, revealed that inflation persists in the short and long term. The consumer price of agricultural products reduces the country’s economic growth. To create the conditions for sustainable agricultural development, major adjustments in agricultural, environmental and macroeconomic policy at national levels will have to be made.

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