The determinants of manufacturing exports in Tanzania

Abstract

This study analyzes the determinants of manufacturing exports in Tanzania. It uses time series techniques to explain the reasons for sluggish response in manufacturing exports in 2000s. Empirical results indicate that sluggish response in manufacturing exports has been caused by first lag of manufacturing exports, country’s real GDP, and first lag of exchange rate. However, manufacturing production, inflation and FDI have no contribution to this sluggish response in manufacturing exports. Therefore, policies for promoting manufacturing exports, country’s GDP stability, as well as exchange rate volatility control policies are of importance to be considered.