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Trading in Clusters and the Future of Small-Scale Trade in the Borderlands of the Great Lakes Region of Africa

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dc.contributor.authorBucekuderhwa, Célestin B.
dc.contributor.authorKunaka, Charles
dc.contributor.authorMvunga, Nyembezi
dc.contributor.authorIbale, Douglas Amuli
dc.date.accessioned2023-10-09T17:32:34Z
dc.date.available2023-10-09T17:32:34Z
dc.date.issued2023-10-09
dc.description.abstractThis paper presents a coping strategy that small-scale cross-border traders adopted in response to the shock of the COVID-19 pandemic and examines its impact. Using a cross-sectional data set of 1,159 traders from the borderlands of the Democratic Republic of Congo and Rwanda, the paper assesses the impact of adopting the Cluster Trading Approach on trade outcomes, household income and poverty reduction. When applying a local average treatment effect approach, the findings reveal that adoption of the CTA causes at least 21 and 31 percentage point increases in traders' turnover and profit respectively. The household income analysis and poverty decomposition highlight an increase in income, even within the depth and severity of poverty. Thus, although access to capital is important for small-scale cross-border traders joining a cluster according to the literature, the results show that the level of capital is less important for income increase once there. As the results are robust to competing explanations and heterogeneity of the sample, the paper concludes that the Cluster Trading Approach is a poverty-reducing strategy and discusses the challenges for its sustainability.en
dc.identifierhttp://documents.worldbank.org/curated/en/099732110032331342/IDU0b9b9175c0a98a047f60ab26080581447184d
dc.identifier.doi10.1596/1813-9450-10581
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40436
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; 10581
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCLUSTER
dc.subjectSMALL SCALE TRADERS
dc.subjectIMPACT
dc.subjectLATE
dc.subjectINCOME
dc.subjectPOVERTY
dc.titleTrading in Clusters and the Future of Small-Scale Trade in the Borderlands of the Great Lakes Region of Africaen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleTrading in Clusters and the Future of Small-Scale Trade in the Borderlands of the Great Lakes Region of Africa
okr.date.disclosure2023-10-03
okr.date.doiregistration2025-04-07T08:26:29.232301Z
okr.date.doiregistration2025-04-08T16:12:43.712812Z
okr.date.doiregistration2025-04-09T03:08:45.108039Z
okr.date.lastmodified2023-10-03T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099732110032331342/IDU0b9b9175c0a98a047f60ab26080581447184d
okr.guid099732110032331342
okr.identifier.docmidIDU-b9b9175c-a98a-47f6-ab26-80581447184d
okr.identifier.doi10.1596/1813-9450-10581
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10581
okr.identifier.externaldocumentum34174281
okr.identifier.internaldocumentum34174281
okr.identifier.reportWPS10581
okr.import.id1949
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099732110032331342/pdf/IDU0b9b9175c0a98a047f60ab26080581447184d.pdfen
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countryCongo, Democratic Republic of
okr.region.countryRwanda
okr.sectorPublic Administration - Industry, Trade and Services,Ports/Waterways,Agricultural markets, commercialization and agri-business,Trade
okr.themeRoad Safety,Agriculture Finance,Entrepreneurship,Trade Facilitation,Gender,Human Development and Gender,Economic Policy,Trade Policy,Rural Development,Finance for Development,Finance,Enterprise Development,Private Sector Development,Urban and Rural Development,Trade,Flood and Drought Risk Management,Trade Logistics,Disaster Risk Management,Rural Markets,Global value chains
okr.topicInternational Economics and Trade::Trade and Regional Integration
okr.topicInternational Economics and Trade::Poverty and Trade
okr.topicInternational Economics and Trade::Trade Policy
okr.unitEFI-AFR1-FCI-Finance-2 (EAEF2)
okr.unitITRGK - Global Knowledge (ITRGK)
relation.isAuthorOfPublication9516c2ac-7353-523f-9776-027b126b9af9
relation.isAuthorOfPublication.latestForDiscovery9516c2ac-7353-523f-9776-027b126b9af9
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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