Impact of trade liberalization on Tanzania’s economic growth

This study analyses the impact of Trade Liberalization on Tanzania’s economic growth, using annual time series data of economic indicators starting from 1970 to 2010 including openness which represent sum of export and import to GDP. The study adopted a quantitative method to establish the impact of trade liberalization on Tanzania’s economic growth where both secondary and primary data were all used. These data were collected from secondary and primary sources and the analysis of the secondary data was done using the Log Linear Multiple Regression (LLMR) technique as a methodology for empirical findings, while for primary data the analysis was done by descriptive method and presented in form of simple frequency tables and text for easy interpretation. The results findings clearly indicated that trade liberalization impacted positively on GDP growth rate of Tanzania in the short run and long run because quantitative analysis had found that there are effects of trade liberalization on economic growth in which for every step taken in liberalizing the trade, GDP had a growth by 7.2%. From the results trade liberalization appear to have a positive and significant effects on GDP. This implies that withdraw of the government from controlling the markets in the mid 1990’s had a significant effects on the growth of the economy.