Industrial Development in Tanzania

Skarstein, Rune; Wangwe, Samuel

doi:10.1093/acprof:oso/9780198776987.003.0008

Cited by 26 publications

(27 citation statements)

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“…Therefore, as international trade theory suggests, the imposition of high tariff rates could lead to an export contraction in some sectors, which subsequently can slow down industrialization if the output growth in the protected sectors does not match with commodities demanded by the growing industries. This is consistent with the findings of Chang (2012), Mkubwa (2014), Msami and Wangwe (2016), Mufuruki et al (2017), and Mwang'onda (2018), which argue that whenever an import tariff is imposed to protect domestic industries, a subsequent decrease in exports is expected in the short run due to imbalances in domestic supply and demand. Therefore, the domestic production expansion adjustments in the protected sectors should be geared toward fulfilling domestic demand, with a reduced focus on export markets.…”

Section: The Effects Of the Tariff Increase On Export Commoditiessupporting

confidence: 91%

“…Thereafter, from 1967 through the mid-1980s, the state abandoned private sector-led industrialization in favor of state-driven industrial development. The state-driven strategy was spearheaded by the Arusha declaration that, among its main manifestations, introduced state-led expansion and establishment of manufacturing industries (Msami andWangwe 2016, Mufuruki et al 2017). It was expected that the development and establishment of publicly owned enterprises would simultaneously expand the private sector.…”

Section: Theoretical and Empirical Literature Of Tanzanian Industrialmentioning

confidence: 99%

“…The Tanzanian government sees industrialization as key for the country to become a middle income and semiindustrialized economy by 2025. Tanzania's industrial sector is mainly comprised of manufacturing (53%), processing (43%), and assembling industries (4%) (Msami and Wangwe 2016;Mufuruki et al 2017;Mwang'onda 2018). Additionally, food processing makes up about 24% of the manufacturing sector, followed by textiles and clothing 10%, and chemicals 8.5% (Mwang'onda et al 2018).…”

Section: Tanzania Agriculture Contribution To Industrializationmentioning

confidence: 99%

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Tariff Impact on Industrialization in Tanzania: Evidence from Edible Oil Sub-Sector

Mgeni¹,

Müller²,

Sieber³

2019

JESD

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Developing countries implement protectionist policies like imposing tariffs, with the aim of promoting domestic production. This study assesses the impact of the imposed tariffs on edible oil on Tanzania's economy using a recursive dynamic computable general equilibrium model (CGE). Findings from this study show that implementing the tariff intervention on the dibble oil sub-sector has two principle outcomes; first, it triggers domestic producers to supply more due to the rise in demand and prices for the commodities, thus increases domestic production to meet demand; second, it reduces imports, consequently, decreasing citizens' welfare by limiting the availability and access options from imported commodities. Protectionist policies, when solely used as a solution to increase domestic production in a sector that is inefficient in terms of productivity, creates a supply deficit in the market, thus reducing consumers' welfare. Therefore, to improve sustainability and increase industrial competitiveness, it is imperative to promote policies and interventions that target increasing productivity. Interventions, like the use of improved seed and other modern technologies, that reduce costs of production are critical as commodities will be sold at a slightly competitive premium or the same prices as imported commodities.

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Section: The Effects Of the Tariff Increase On Export Commoditiessupporting

confidence: 91%

Section: Theoretical and Empirical Literature Of Tanzanian Industrialmentioning

confidence: 99%

Section: Tanzania Agriculture Contribution To Industrializationmentioning

confidence: 99%

See 1 more Smart Citation

Tariff Impact on Industrialization in Tanzania: Evidence from Edible Oil Sub-Sector

Mgeni¹,

Müller²,

Sieber³

2019

JESD

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“…The relatively high export market prices imply that it is more profitable for traders to sell to the export market, hence suppliers switch to export markets. This supports the findings that show that whenever the supply of domestically produced commodities increases in one sector of the economy, then in the short-term a decrease in exports is expected for other sectors, particularly the industrial and service sectors due to imbalances in domestic supply and demand [3,[39][40][41][42][43][44]. This is the desired outcome-the increase in productivity for the target sector is geared toward fulfilling domestic demand, with a reduced focus on export markets.…”

Section: The Effects Of the Increase In Production On Export Commoditiessupporting

confidence: 82%

Reducing Edible Oil Import Dependency in Tanzania: A Computable General Equilibrium CGE Approach

2019

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Reducing food imports and promoting domestically produced food commodities are long-standing goals for policymakers and other stakeholders in sub-Saharan African countries. For instance, Tanzania, after a long period of dependency on imported food commodities, such as sugar and edible oils, intends to meet its demand for these commodities through domestic production by transforming its agriculture sector to achieve this goal. Applying a general computable equilibrium (CGE) model, this study determines the multiplier effects of technological progress that is assumed to foster domestic edible oilseed crop production, other crops, and Tanzania’s economy in general. Findings from the model establish an increase in domestic production not only for the edible oilseed crops but also for other commodities from other sectors of the economy. In addition, there is a decrease in prices on domestically produced commodities sold in the domestic market, and an increase in disposable income is predicted for all rural and urban households, as well as government revenues. Based on model results, we recommend that the Tanzanian government invests in technological progress and interventions that increase production in sectors such as agriculture, where it has a comparative advantage. Interventions that increase smallholder farmer’s production, such as the use of improved seed and other modern technologies that reduce costs of production, are critical for reducing food imports and improving food security.

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“…During this time the country attained industrial development level that has not been experienced again in history. Number of industrial firms rose from 220 during independence to more than 2000 in 1970, with 7000 registered trademarks, accompanied with rapid growth of manufacturing value added with capacity of meeting 70 percent of domestic demand for consumer goods and increase in absolute and relative labour productivity [11,12].…”

Section: Tanzania's Manufacturing Sectormentioning

confidence: 99%

Industrialisation in Tanzania: The Fate of Manufacturing Sector Lies upon Policies Implementations

Mwang’onda¹,

Mwaseba²,

Juma³

2018

IJBER

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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.

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Industrial Development in Tanzania

Cited by 26 publications

References 0 publications

Tariff Impact on Industrialization in Tanzania: Evidence from Edible Oil Sub-Sector

Tariff Impact on Industrialization in Tanzania: Evidence from Edible Oil Sub-Sector

Reducing Edible Oil Import Dependency in Tanzania: A Computable General Equilibrium CGE Approach

Industrialisation in Tanzania: The Fate of Manufacturing Sector Lies upon Policies Implementations

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