Browsing by Author "Maje, Evelyne Hangali"

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    Financial intermediation and saving in Tanzania
    (University of Dar es Salaam, 1981) Maje, Evelyne Hangali
    This study attempts to quantify the role of financial intermediation in the savings mobilisation process in Tanzania during the period 1966-1976. The study employed both qualitative and quantitative methods of analysis. Quantitative analysis involved both statistical and econometric techniques. Statistically, the banking system appeared pre-eminent. This together with the low value of the financial interrelations ratio depicts a salient feature of financial structures in developing areas. In the econometric analysis, we used both single equation and simultaneous equation models. The empirical findings indicated that financial intermediation enhances savings mobilisation. The estimated coefficients of financial intermediation with respect to total savings and private savings were found to be 0.110 and 0.103, respectively. In Tanzania, financial intermediation appears to be both “supply-leading” and “demand-following”, that is to say, financially intermediates savings influence internally generated savings and the other way round. Further, the findings showed that income is an important determinant of saving; and financial intermediation influences the income generating process strongly. The marginal propensity to save (MPS) in Tanzania was found to be 0.464 and the estimate of the partial derivative of financial intermediation with respect to income was 0.341. Since financial intermediation plays a significant role in savings mobilisation and the income generating process in Tanzania, it should be encouraged and developed further.