Table 7.9—Returns to public investment by agricultural subsector: Model results in the investment scenario, 2006–15
GDP/investment Grains
Maize Rice
Wheat
Roots and tubers Cassava Potatoes
Sweet potatoes
Other staple crops Pulses
Bananas Oilseeds
Export crops Coffee
Green tea Other cash and export crops
Livestock and fishing Poultry
Other livestock Fishing
Cash and export crops
7.02 1.41 5.34
5.46 5.88 2.53
9.09 5.35 5.89
1.01 1.95 1.08
10.54 1.81
Grains 2.75 Root crops
Livestock 2.02 Staple crops and livestock Agriculture total
1.02 3.84
3.19
12.50 5.03
6.59 1.22 5.15
4.61 5.66 2.22
8.21 4.94 4.73
1.74 2.52 1.07
10.09 1.74
12.35 2.73 4.65 1.24 1.90 3.63 3.11
Sources: Authors’ calculations using Rwanda dynamic computable general equilibrium (DCGE) model results combined with the public investment data from Rwanda, MINAGRI (2007). Note: AgGDP = agricultural gross domestic product. GDP = gross domestic product.
AgGDP/investment
the ratio of increased AgGDP to investment. As shown in the last two rows of this table, economywide returns to public investment in overall agriculture are about 3.1:1.0 and are 3.6:1.0 from investing in staple production (including both staple crops and livestock). The returns to the investment measured as increased GDP are higher than those measured as increased AgGDP for the same amount of public spending in agriculture. These results further indicate the importance of fully mea- suring the economywide returns of agricultural investment, because such spending also indirectly benefi ts nonagricultural sectors through production linkages (such as using agricultural materials as inputs to agroprocessing or increased demand for trade and transports after more agricultural products are sent to markets) and con-