Open AccessIs agriculture an engine of economic reconstruction and development in the case of the Republic of Burundi?
Author(s) -
Jean Baptiste Aboyitungiye,
Dwi Prasetyani
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/905/1/012071
Subject(s) - agriculture , economics , arable land , per capita , gross domestic product , inflation (cosmology) , agricultural economics , agricultural productivity , gross output , gross value added , population , econometric model , production (economics) , natural resource economics , macroeconomics , geography , econometrics , archaeology , sociology , theoretical physics , physics , demography
Despite its importance for the economy, the agricultural sector faces many constraints that hamper its growth. With the increase in the world population and the demand for food production, farmers need to produce more with less arable land. This study used the ARDL approach to model the long-term and short-term dynamics and proposed 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. Major adjustments in agricultural, environmental, and macroeconomic policy at national levels will have to be made to create the conditions for sustainable agricultural development.