Browsing by Author "Mwaseba, Steven Lee"

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    The impact of fiscal policy on private savings in Tanzania
    (University of Dar es Salaam, 2013) Mwaseba, Steven Lee
    This study investigated the impact of fiscal policy on private savings in Tanzania from 1970 to 2010 by establishing relationship between fiscal balance and private savings rate using annual time series data. Augmented Dickey Fuller (ADF) and Zivot Andrews test used to check for a unit root and Autoregressive distributed lag (ARDL) methodology used to test for existence of relationship between variables and estimation of long-run and short-run dynamics of the ARDL model. Results from regression rejected the hypothesis that fiscal balance has no impact on private savings rate. The results suggest only a long-run significant negative relationship between fiscal deficits and private savings rate, that is, public savings crowd out private savings in a long-run and have no impact on short-run and though full Ricardian equivalence hypothesis does not hold in Tanzanian context. Thus, fiscal policy and private savings relationship are only a long-run phenomenon and thus, demand for further empirical investigations.