The foreign direct investment flow in agriculture in Tanzania mainland 1995-2005
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Date
2007
Authors
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Journal ISSN
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Publisher
University of Dar es Salaam
Abstract
This study set to identify and analyse determinants of FDI inflow in agriculture in Mainland Tanzania from 1995 — 2005. The analysis was done using quantitative analysis based on eclectic theory by Dunning. Quantitative analysis involved the econometric estimation of selected variables on FDI inflows in agriculture using E-view method. FDI flow to agriculture remains small and come from less diversified traditional sources, namely U.K, Kenya, India, German and Netherlands, together accounting for 72 percent of the investment projects. Regional distribution of investment in agriculture is skewed favouring Arusha, Tanga, Morogoro and Dar es Salaam. Favourable climate, developed infrastructure and location of privatized public enterprises are determinants of regional distribution of FDI projects in agriculture it was found that corporate tax affects FDI inflows negatively as it leads to less FDI inflow in agriculture, while exchange rates dynamics it is important for the net FDI inflows in the country, the more the overvalued exchange rate the more foreign investment flows in. Infrastructure is an important determinant in the FDI inflow in agriculture, as a well-developed infrastructure reduces the cost of doing business and poor infrastructure leads to less inflow of FDI in the sector.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class Mark
(THS EAF HD1335.T34M26)
Keywords
Agriculture and state, Inverstment,foreign, Agriculture, Economic aspects, Farms, Foreign ownership, Tanzania mainland
Citation
Mbonde, M (2007) The foreign direct investment flow in agriculture in Tanzania mainland 1995-2005, Master dissertation, University of Dar es Salaam.