Trade liberalization and Tanzania`s export performance

This paper examines the impact of the trade liberalization on export performance in Tanzania from 1970 to 2007. It employs in time series regression analysis with export performance is assumed to determined external market conditions (World Income), foreign direct investment (FDI), Trade linearization variable, and exchange rate. Since the 1980s trade liberalization has become an increasingly common future of economic policy in developing countries, therefore is expected that African countries would expand production and exports. However, LDCs have become increasingly marginalized in the world income were the important determinants of Tanzania export performance during the sample period. While exchange rate, FDI and world income contributed to increased export performance in Tanzania. With advances in economic integration, particularly East African Cooperation (EAC) and Southern Africa Development Cooperation (SADC) together with African Growth Opportunity Act (AGOA), there are potential export opportunities that can be explored to Tanzania`s advantage, including promotion of the non-traditional exports.