Export diversification strategy and its influence on the economic growth in Tanzania
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Date
2020
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
This study scrutinized export diversification strategy and the influence it exerts to the growth of the economy in Tanzania from the year 1995 to 2017. The study was specifically guided by five specific objectives which measured the extent to which the composition of exports, diversification index, real effective exchange rate, capital formation and employment formation affect the development and Tanzania economic growth. The study employed a descriptive research and used secondary time series data for 23 years from 1995 to 2017. Secondary data were collected from World Development Indicators of the World Bank and United Nations Conference on Trade and Development. Data analysis was done by using Stata package, from which the study conducted stationarity test, data transformation, Error Correction Model (ECM) estimation and used the ARDL model to analyze the empirical results. The findings of the study indicated that capital expenditure and diversification index had a positive significant influence on economic growth in Tanzania, while export composition and real effective exchange rate on export diversification had negative influence on the economic growth in Tanzania. The findings of the study further indicated that employment rate was not a significant variable in measuring export diversification influence, in growing Tanzania’s economy. This study recommends the government of Tanzania in the form of policy implication to increase prominence on investing in the export sector, specifically the manufacturing export sector, so as to attract the increase of foreign investments. The government may look into the possibility of increasing manufactured exports by attracting high technology investment in the manufacturing sector, while addressing restraints as well as putting in place trade policies which are proactive, dynamic, flexible and differentiated between sectors and between the various segments of a given sector in order to enable diversification to take place
Description
Available in print form, East Africana Collection, Dr.Wilbert Chagula Library, (THS EAF HF1414.4.T34A773)
Keywords
Exports, Influence off, Economi development, Tanzania
Citation
Assenga, F. P (2020). Export diversification strategy and its influence on the economic growth in Tanzania, Masters dissertation, University of Dar es Salaam, Dar es Salaam.