International Journal of Social Sciences and Management Review (original) (raw)
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Manufacturing Exports and Economic Growth in Tanzania
Tanzanian Economic Review
This study examines the relationship between manufacturing exports and economic growth in Tanzania. The study is based on the export-led growth model and the virtuous circle to analyse the relationship. Using secondary time series data, the study employed the Autoregressive Distributed Lags (ARDL) approach and the Granger causality test technique for analysis. It was found that manufacturing exports affects economic growth in the long-run; and that, for Tanzania, manufacturing exports are the ones causing economic growth, and not the other way round. Therefore, the study concludes that there is a significant relationship between Tanzania's manufacturing exports and economic growth. It recommends policies, strategies and further efforts to be made to increase manufacturing products; encourage firms to produce quality products; invest in professional skills, education, and training; and increase external markets for manufactured products.
Determinants of Exports and Investment of Manufacturing Firms in Tanzania
2000
The Centre for Research in Economic Development and International Trade is based in the Department of Economics at the University of Nottingham. It aims to promote research in all aspects of economic development and international trade on both a long term and a short term basis. To this end, CREDIT organises seminar series on Development Economics, acts as a point for collaborative research with other UK and overseas institutions and publishes research papers on topics central to its interests. A list of CREDIT Research Papers is given on the final page of this publication.
Trade Liberalization and Employment Performance of Textile and Clothing Industry in Tanzania
International Business Research, 2010
The objective of this study is to investigate the effect of trade liberalization on employment performance of textile industry in Tanzania. The basic issue of concern is that the implementation of trade liberalization has differential impact on employment and wage in many African countries. In addressing this issue as well as achieving the objective, econometric models of employment and wage are estimated using co-integration method of analysis. The analysis shows that effective rate of protection and export intensity have an insignificant positive impact on demand for labour, but import penetration has a significant negative impact on employment. Also, only import penetration has a significant negative impact on wage. The impact of import penetration is larger than that of export orientation, as the increase in import competition leads to a decline in labour demand. These findings point to the fact that to make trade liberalization to be effectual in Tanzania, the process of trade reform needs to be gradual and also need to be strengthened with appropriate institutional support.
Since the mid-1980s Tanzania has implemented a number of trade and fiscal policy reforms that were partly intended to encourage increased export activity by manufacturing firms. Macroeconomic data suggest that there has been little response. To understand this lack of response we need to increase our understanding of the features of manufacturing exporters in Tanzania. This paper is a first attempt, by presenting the findings from a survey of 83 firms. Large firms are more likely to export than other firms, and more large firms sustain their investments than smaller firms. We also find, independent of this relationship to size, that firms that sustain investment are more likely to export than those which do not sustain investment. One distinction between our findings and other studies is that parastatals, including firms with some government ownership, tend to be larger and are more likely to export and sustain investments than non-parastatals. Subscription by shareholders and personal savings are the two main sources of start-up capital, while company earnings are how most investments are financed. The findings are consistent with the view limited access to bank financing has been a major constraint to manufacturing, especially exporting. Outline 1.
The performance of the manufacturing sector in Tanzania:Challenges and the way forward
Tanzania’s industrial sector has evolved through various stages since independence in 1961, from nascent and undiversified to state-led import substitution industrialization, and subsequently to de-industrialization under the structural adjustment programmes and policy reforms. The current development agenda, however, has brought industrial development back to be one of the policy priorities. This paper aims at examining the performance of the manufacturing sector, with particular interest in identifying the emerging manufacturing subsectors, drivers of their success, and challenges for sustained competitiveness. The paper shows that manufacturing growth over the last ten years has helped to sustain GDP growth. The growth in manufacturing notwithstanding, it remains largely undiversified, and vulnerable to variations in agricultural production and commodity prices. The most dynamic subsectors in terms of output growth, export growth, production innovation and product diversity are food products, plastic and rubber, chemicals, basic metal work, and non-metallic mineral products. Nevertheless, the domestic value addition is limited by the dependence of imported intermediate goods, signifying limited inter-industry linkages that are important for promoting domestic manufacturing base and employment. Various technological, financial, policy, and administrative constraints remain unresolved and therefore, limiting faster industrial growth and transformation.
2014
Typescript prepared by Liisa Roponen and Lisa Winkler at UNU-WIDER. UNU-WIDER gratefully acknowledges the financial contributions to the research programme from the governments of Denmark, Finland, Sweden, and the United Kingdom. The World Institute for Development Economics Research (WIDER) was established by the United Nations University (UNU) as its first research and training centre and started work in Helsinki, Finland in 1985. The Institute undertakes applied research and policy analysis on structural changes affecting the developing and transitional economies, provides a forum for the advocacy of policies leading to robust, equitable and environmentally sustainable growth, and promotes capacity strengthening and training in the field of economic, and social policy-making. Work is carried out by staff researchers and visiting scholars in Helsinki and through networks of collaborating scholars and institutions around the world.
Industrialisation in Tanzania: The Fate of Manufacturing Sector Lies upon Policies Implementations
International Journal of Business and Economics Research, 2018
It is undeniable fact that manufacturing sector plays key role in growth of any economy and it is from this sector developing countries can catch-up with the rest of the world. While other countries are struggling in upgrading the level of their industrialisation to accommodate the concept of sustainability by going for more advanced and green technology hence increase productivity, others are still on the ground struggling to take off and catch-up with industrialized world, Tanzania being one of them. In spite of various strategies proposed and implemented, the sector contribution has remained low, and currently statistics shows a decline. From analysis, it is evidently that manufacturing sector remain to be significant for the growth of Tanzania's economy despite her small GDP share relative to other sector like agriculture and service. The stagnant contribution share of sector is linked with; implementation lags on ambitious uncoordinated plans, slow transforming economic structure which is dominated by agriculture, and competition from low priced manufactured import from Asian economies. Thus, the best way to go is for a country to centrally coordinate all development policies to ensure connectivity and progressive monitoring of policies' implementations, and attention should be paid on agro-allied resource-based industries which are labor-intensive and value-adding which will ensure massive job opportunities to large agricultural population and take advantage of vast arable agricultural land available.
This study examines the effect of manufacturing sector in the economic growth of Tanzania, using annual time series data from 1985 to 2017. The study employed the Ordinary Least Square technique whereby Kaldor's first law was triangulated with exogenous theory to examine the role of manufacturing in the economic growth of Tanzania. Augmented Dickey-Fuller (ADF) test was used to test for stationarity. The variables regressed included economic growth, manufacturing growth, exports and employment growth. Granger Causality test revealed that there was unidirectional relationship running from economic growth to manufacturing growth contrary to what was hypothesised. In general, the findings were not in favour of the applicability of the Kaldor's first law in Tanzania because causality was running from economic growth to manufacturing growth instead of running from manufacturing to economic growth. This implies that the economy of Tanzania is driven by other sectors apart from manufacturing. It is thus observed that more efforts to improve and sustain manufacturing growth would make manufacturing the engine of economic growth. Intuitively, from the policy point of view the findings entails that in order to make manufacturing sector the engine of economic growth, enabling conditions to propel growth of the economy, necessary factors like capital availability, technological advancement, availability of skilled labour and promotion of export led manufacturing growth is necessary.