Factors influencing household investment decisions in Tanzania
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Date
2020
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
The growth in the access to financial services can enable households to invest in human capital through education and physical capital through involving in different economic activities such as agriculture or expansion of business leading to higher future income hence growth. However, in Tanzania this has not been the trend most of the household choose to forgo present investment which will yield future income but instead utilize this advantageous situation for consumption purpose such as increasing household assets or covering for unnecessary expenditures. Using cross-sectional data which were collected as the fourth wave in the series of Fin Scope Tanzania surveys 2017 the study analyses the factors influencing household investment decisions. A total sample of 9, 459 households were used to analyse this study, where we captured household investment from saving behaviour of the household heads. Descriptive statistics show that only 15% save for investment purposes. Econometric analysis shows that age, gender, secondary and university level of education, household in rural areas, ownership of land and access to informal financial services significantly determine the influence of access to financial services on household investment. This suggests that the Government needs to expand access to finance, among other factors that will motivate more households to invest in various sectors through different such as reducing loan interest rates in banks and also reduce some of the restrictions that limit investment, example bureaucracy.
Description
Available in print form, Dr. Wilbert Chagula Library. East Africana Collection. (THS EAF HB522.T34N322)
Keywords
Households, Families, Income Investments, Tanzania
Citation
Ndabagoye, N.K. (2020). Factors influencing household investment decisions in Tanzania. Masters dissertation. University of Dar es Salaam. Dar es Salaam