Assessment of the effects of governance foreign direct investment and foreign and in the economy of Tanzania
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Date
2020
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Publisher
University of Dar es salaam
Abstract
Most nations often regard foreign direct investment as potential tool for economic growth EDI inflow supplements Domestic savings that are the main driving force of an economy in an economy domestic savings interacts with other variables to promote economic prosperity. These other variables are incorporated in the study through a simultaneous equation model. The main objective of this study was to assess the effects of Governance Foreign Direct investment and Foreign Aid in the economy of Tanzania. A six stochastic equations econometric model was postulated for the purpose and time series data for the period of 1995-2018 was utilized. Model parameters were estimated by Two Stage Least Square Estimation technique after first differencing and logarithmic transformation of the original variables. The results indicated that effects of governance in on the economy were reflected in three equations of the model .These were the consumption. Export and exchange rate equations. As regards foreign aid its effect s were noted in their import and Gross Domestic product equations in the case of foreign Direct investment the results indicated a negative effect in the Capital formation equation. The study was concluded by stressing on the necessity of strengthening institutional policies in the struggle to completely eliminate corruption that retards economic growth. It was also recommended that there should be a committed drive to local industries that will enable Tanzania to flourish in the export marker last but not least it was stressed that it is only industrialization that will rescue Tanzania from being reliant on external aid that fuel external debt.
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Available at Dr. Wilbert Chagula library (THS EAF HD72.T34G67)
Keywords
Economic development, Inverstments foreign, Economic assistance, Public administration, Tanzania
Citation
Gosbert, B. (2020) Assessment of the effects of governance foreign direct investment and foreign and in the economy of Tanzania.university of dar es salaam, dar es salaam