This study explored the causal relationship between exports and economic growth in Tanzania. It analyzed time series data for the period of 1980 to 2015. Economic growth is measured in terms of growth per cent while exports are measured in percentage change of goods and services sold abroad. Econometrics analysis was employed in the due course. Such procedures as testing for the presence of unit root, co-integration and causality were done. Furthermore, the Johansen co-integration and Granger causality tests were employed to examine the long-run relationship among variables. The results of co-integration indicate the existence of one co-integrating equation. The causality test results exhibited causality which runs from economic growth to exports. The results conclude that, in the long run, there is a relationship between exports and economic growth in Tanzania. This study recommends the Government to make efforts to improve exports and eventually, in the long-run, rejuvenating the economy.
This study was conducted in two phases; first as a survey and second as a case study. The study used a cross-sectional survey design to explain the business characteristics influencing the selection of investment evaluation techniques among Tanzanian SMEs. Purposive sampling technique was used to collect data to a sample of 301 SMEs drawn from SIDO in Dar es Salaam and Dodoma regions. Data were collected though questionnaires and transformed into suitable format for analysis using statistical packages for the survey, while for the case study interviews were used. Statistical techniques used in this study were descriptive (frequency distributions) and inferential statistics (multivariate analysis) which were used to determine whether or not there is a relationship between business characteristics and selection of investment evaluation techniques. Results of this study shows that, sales growth, industry of business, level of education and finance education of owners, were the business characteristics that influence the selection of investment evaluation techniques.Theoretical and practical contributions in the area of investment decisions for SMEs in Tanzania are made based on the findings of the study. On theoretical contributions, the study provided a better understanding on small business characteristics and how they influenced the selection of investment evaluation techniques. On practical contributions, owners should maintain high sales growth; improve education background by attending short courses on financial management, because these two characteristics significantly affect the selection of investment evaluation techniques.
This study explored the causal relationship between exports and economic growth (GDP) in Tanzania. It analysed time series data for the period of 1980 to 2015. Economic growth, in this study, is measured in terms of growth per cent while exports are measured in percentage change of goods and services sold abroad. The purpose of this study was to examine the effectiveness of exports to economic growth in Tanzania. This was analysed by testing for the presence of unit root, co---integration and causality. The unit root test was performed and after the first difference data were stationary. Further, the Johansen co---integration and Granger causality tests were employed to examine the long---run relationship among variables. The results of co---integration indicate the existence of one co---integrating equation. The causality test results exhibited causality which runs from economic growth to exports. The results conclude that in the long run, production alone can cause exports growth. This means that export is not an effective stimulus to the economic growth of Tanzania. This study suggests that the Government should make efforts to enhance the production side or the supply side which is expected, in the long run, to develop trade and eventually the economy. The study, further, suggests that the government should take care of the import substitution industrialisation policies which encourage domestic production.
This study engages with the debate in the literature on access to livelihood resources and livelihood diversification to show how differences in people’s access to resources result in differences in the choices of development strategies (DST) that people pursue for livelihoods’ enhancement. It uses a multinomial logit model to analyse how access to social and financial capitals affects people’s choices of DST in the rural river basin areas of Tanzania. Further to that, the study links the findings with policy initiatives related to the conservation of river basin resources (RBR). The study uses survey data which were supplemented by qualitative data gathered through focus group discussions. Findings show that both access to social and financial capitals affect the choice of secondary DST, though access to social capital seems to be more important in Kilombero, and access to financial capital more important in Meatu. In Kilombero, access to social capital is an important factor for people to diversify their activities away from traditional pastoralism, an activity that is not environmentally friendly. In Simiyu, access to financial capital raises the likelihood of people to participate in off-farm activities instead of other activities that make enormous use of RBR, for example, traditional pastoralism and irrigated farming.
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