Investigation of the role of manufacturing industries to the economic development of Tanzania

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University of Dar es Salaam
The manufacturing sector plays a significant role in promoting economic growth in many countries. This study investigated the role of the manufacturing sector to the economic growth for Tanzania. The study used time series data for 30 years (1983- 2013) which were obtained from TIC, NBS, TRA, BOT and UNCTAD. By using Johansen test of cointegration, Vector Auto regression model and Granger causality tests the study found that there was a single cointegrating vector. The equation was relating manufacturing stocks and exports (as independent variables) to economic growth, the dependent variable. Furthermore, there was unidirectional causality relationship with the direction from manufacturing stocks and exports to GDP growth rate (economic growth). There was also a unidirectional causality with the direction from manufacturing to exports. Therefore, manufacturing stocks Granger caused GDP growth rate and exports, while exports Granger caused GDP growth rate only. This further implied that, manufacturing have a direct and indirect causality to GDP growth rate. These observations necessitate the special consideration by the Government for making manufacturing working for economic growth. The findings in this study support the export-led growth hypothesis and manufacturing as the engine for economic growth. This study recommends that the government should provide conducive environment for local and foreign investors to establish various industries to produce products that can be locally demanded and for export markets in order to have positive balance of payments by reducing imports and export more products
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HD9737.T34M32)
Manufactures, Economic development, Tanzania
Madeu, M. J. (2015) Investigation of the role of manufacturing industries to the economic development of Tanzania, Master dissertation, University of Dar es Salaam, Dar es Salaam