Browsing by Author "Mhamba, Robert Mitundwa"

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    Intersectoral financial resource transfers and agricultural development in a liberalized market in Tanzania.
    (University of Dar es Salaam, 2003) Mhamba, Robert Mitundwa
    The main purpose of this study is to contribute to a better understanding of the changes in net intersectoral resource transfer between the agricultural sector and the non-agricultural sector in Tanzania before and after agricultural market reforms. Furthermore, to understand the impact of the observed pattern of net intersectoral resource transfers between the two sectors on growth of the agricultural sector in the country. Net intersectoral resource flows between the agriculture and the non-agricultural sector are empirically estimated for the preliberalization period, which is represented by the period from 1976 to 1985, and the post-liberalisation period, which is represented by the period from 1986 to 1998. An agricultural growth model is developed which includes among others net intersectoral resource flows between the agricultural and non-agricultural sector as one of the variables. The model is developed to estimate the impact on agricultural growth of the net intersectoral resource flows between the agriculture and the non-agriculture sectors. Our estimated results indicate net resource flows from the non- agricultural sector to the agricultural sector in the period prior to the economic reforms and thereafter. Furthermore, our results show strong evidence that there is a significant relationship between agricultural output and net inflow of financial resources into the sector from the non-agricultural sector. However, the results indicated a negative relationship, which is contrary to our prior expectations. From these results a conclusion is drawn that net intersectoral inflow into the agriculture have not been advantageous to the agricultural sector, in terms of contribution to increasing output in the sector.