External aid inflows and real exchange rate in Tanzania

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dc.contributor.authorSama, Charles
dc.date.accessioned2019-11-13T14:19:27Z
dc.date.accessioned2020-01-07T15:52:59Z
dc.date.available2019-11-13T14:19:27Z
dc.date.available2020-01-07T15:52:59Z
dc.date.issued2006
dc.descriptionAvailable in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG 3877.T34S35)en_US
dc.description.abstractThis study estimates an empirical model for Tanzania’s real exchange rate with special focus on foreign aid. The study examined the trends of real exchange rate in Tanzania and explored the impact of foreign aid inflows on real exchange rate under the period of study. The study used annual time series secondary data for the period 1970-2003 in conducting estimations on the variables included in the model. Analysis of the data was done by using Ordinary Least Square (OLS) in the linear model. Analysis of the data was done by using Ordinary Least Square (OLS) in the linear model.Examination of the time series characteristics of the data was undertaken and testing for stationarity and co integration was considered. The model of the real exchange rate determination is adopted and foreign aid proxied the amount of Overseas Development Assistance (ODA) as percentage of GDP incorporated as one of the fundamentals of the real exchange rate. The main hypothesis of the study is that external aid inflows to Tanzania result in real exchange rate appreciation. This is consisted with the theory which postulates that aid inflowa result into increased real incomes and consequently increased demand for non-traded goods thereby precipitating appreciation of real exchange rate.The results show that foreign aid has resulted into depreciation of the real exchange rate for the period under study. This finding does not concur with the theoretical expectation which predicts that aid inflows will lead to real appreciation. This could probably happen due to some offsetting capital flows (capital flight)en_US
dc.identifier.citationSama, C (2006) External aid inflows and real exchange rate in Tanzania.Master dissertation, University of Dar es Salaam, Dar es Salaam.en_US
dc.identifier.urihttp://localhost:8080/xmlui/handle/123456789/2005
dc.language.isoenen_US
dc.publisherUniversity of Dar es Salaamen_US
dc.subjectExchange rateen_US
dc.subjectExtenal aid inflowsen_US
dc.subjectTanzaniaen_US
dc.titleExternal aid inflows and real exchange rate in Tanzaniaen_US
dc.typeThesisen_US

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