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Abstract
We study post-war recovery in Rwanda, focusing on the coffee sector. First, we find that the role
played by the rise in international coffee prices largely outweighed the one played by domestic
policies. Second, we reveal the legacy of armed conflict, by analyzing how the recovery of the
coffee sector varied sub-nationally. In 1999 – five years after the peak of the violence – we observe
a significant investment gap in highly violence-affected regions. By 2009 the gap is however
closed. We argue that the catching up was fostered by positive externalities generated by highprofile
public investments in the coffee sector.