Determinants of per capita income growth in Tanzania: 1965-2002

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University of Dar es Salaam
This study has attempted to empirically investigate the factors behind the growth of income per capita in Tanzania closely following the economic phases within the period 1965 to 2002. The model used in this study is the modified extended version of the Mankiw et al. (1992) which has also been used by Mutuerandu (1999) in estimating the determinants of per capita income growth in their studies. The study recommends that, in order to have a reduction in poverty level and increase in individual’s income levels, population growth, inflation rate and private investment are significant determinants of per capita income growth. With this, it implies that macroeconomics policies will eventually have some impact on per capita income growth. Despite the limitations and shortcomings encountered, in general the findings indicate that, in Tanzania, per capita income is one of the major factors for the measurements of the standard of living and poverty in general. With these findings therefore policy implications may be quite applicable to a specific country like Tanzania. This will thus be a useful guideline to the policy makers, specifically the macro-economic policy makers, when deciding on poverty reduction as well as improvement of the people’s standard of living.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HC79.C3T34M87)
Income, Tanzania
Musira, E. (2014) Determinants of per capita income growth in Tanzania: 1965-2002, Master dissertation, University of Dar es Salaam. Dar es Salaam.