Research Articles[FSS-Eco]
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Item Tourism-driven livelihood dynamics: A comprehensive empirical study of Mount Kilimanjaro National Park communities in Tanzania(International Journal of Geoheritage and Parks, 2024) Kitole, Felician Andrew; Sesabo, Jennifer KasandaTourism is pivotal for rural economic development; however, despite hosting a substantial number of tourists, many developing countries with rural landscapes face persistent poverty among local communities. This study aims to delve into the impact of tourism (geo-heritage and national parks) on local livelihoods, examining drivers for livelihood portfolios and community decisions to engage in tourism activities. The Multivariate Probit, and instrumental variable models (Instrumental Variable Probit, and Two Stage Least Squares) were employed on data from 582 respondents collected through cross-sectional questionnaires. Results highlight the significant influence of socioeconomic factors—sex, age, household size, credit access, market access, social membership, and education—on livelihood portfolio. Results show that specific tourism activities, such as accommodation services, handcrafts, catering and hospitality, and tour guiding, exert varying effects on household food security, income, and access to essential social services. Challenges hindering participation include education levels, information and awareness, service quality, cultural barriers, financial costs, government policies, competition, resource monopolisation, corruption, and infrastructure deficiencies. Recommendations include investments in skill development, infrastructure enhancement, cultural preservation, financial inclusion, regulatory frameworks, and community awareness programs. These strategies aim to facilitate household participation in tourism activities, promoting geo-tourism and enhancing the well-being of Mount Kilimanjaro National Park communities. Policymakers are urged to im plement these measures to uplift local livelihoods and foster sustainable tourism in the region.Item Performance drivers of women-owned microcredit funded enterprises in Tanzania(Emerald publishing, 2020) Tundui, Charles S.; Tundui, Hawa P.The purpose of this paper is to investigate performance drivers of women-owned businesses that are funded primarily through microcredit. It draws on Storey’s theory of small business growth and family embeddedness axiom to examine the factors that drive the performance of businesses that are funded primarily through microcredit. The paper uses a cross-sectional survey that covered 208 women business owners who had access to microcredit. The authors use a logistic regression analysis to model the relationship between independent variables and enterprise performance. The paper demonstrates that microcredit plays a significant role in business performance. The credit amount has the most significant influence on the enterprise capital base, whereas the effect on profits is insignificant. Also, owners are more likely to report growth in profits if they possess skills in business management. In addition, younger business owners and necessity entrepreneurs are more likely to report success in their businesses. Other factors that have a significant effect on business performance are product cycle, loan use and family support. Many women in Tanzania are entering business ownership and depend on microcredit as their primary source of capital for starting and growing their businesses. However, just a few businesses grow into small and medium-sized enterprises. For informed policy decisions, it is important that the factors influencing the performance of funded businesses are known and well understood. This understanding will help the government and development practitioners assist women in achieving business growth rates that could warrant their empowerment and poverty reduction prospectsItem The effects of foreign direct investment on economic growth (Gross Domestic Product) in Tanzania(Economic Insights – Trends and Challenges, 2024) Utouh, H.M.L,; Mchukwa, E.W.; Tibuhinda, R. N.This study aims to analyse the effects of Foreign Direct Investment on Economic Growth (Gross Domestic Product) in Tanzania. The World Bank’s data on foreign direct investment and gross domestic product from 1988 to 2021 was employed to achieve the purpose of the study. The Vector Autoregressive Regression (VAR) Model was selected, in which a neoclassical growth model was applied to the implementation of this model. According to the findings of the research that was carried out, the Gross Domestic Product was primarily influenced by its prior values, which suggests that the economy is capable of some degree of self-sufficiency in terms of driving changes in the economy. According to the findings, foreign direct investment had a relatively minimal direct impact on gross domestic product, which suggests that other factors played a more significant role in influencing economic performance. There was no bidirectional causal relationship between gross domestic product and foreign direct investment; they both functioned independently of one another. It has been established that endogenous shocks have a significant role in driving changes in both GDP and FDI, which underscores the impact that internal forces have on the economic system. The importance of taking into account internal factors while analyzing economic growth has been brought to light as a result of these findings, which have contributed to a better understanding of the complex relationship that exists between GDP and FDI.Item External debts as panacea to economic growth challenges in selected Eastern African countries: An application of the autoregressive distributed lag mode(Science Mundi, 2024) Utouh, Harold M.L.; Tile, Augustino; Sesabo, Jennifer KasandaForeign aid has significantly influenced medium- and long-term development initiatives in Eastern African countries. Project aid and non-project aid are the two main categories that describe foreign economic assistance (loans, credits, and grants). The primary aim of foreign aid has been to supplement the internal resources needed to quicken the economic development of the nations in Eastern Africa. This study investigated the influence of external debt on the economic growth of Eastern African countries (Kenya, Uganda, Rwanda, Burundi, and Tanzania) using the autoregressive distributive lag mode and panel data (1970–2020). The findings revealed that external debt had a significant adverse effect on economic growth. In Burundi, an increase in external debt reduces GDP by 5% in the short run, while in the long run, it reduces GDP by 19%; in Tanzania, it decreases GDP by 22%; and in Kenya, it reduces the GDP by 13%. Conversely, the findings indicated that the increased level of external debt positively influenced Uganda's GDP (0.03%) but was not statistically significant. Therefore, it is recommended that Eastern African countries source their income, apart from more external concessional debt, through bilateral or multilateral arrangements to plug into their budget deficits. Also, it is recommended that East African governments develop their external debt initiatives that offer further profitable investment opportunities to repay their foreign debt gradually. Moreover, strategies in the East African countries must be geared towards strengthening revenue mobilization to provide avenues to balance their external debts. For instance, improving the informal sector in these countries is a viable base for increasing revenue through taxesItem Connectedness to water as a predictor of household participation in water resources conservation in Singida municipality, Tanzania(African Journal of Empirical Research, 2024) Utouh, Harold Martin; Muwelu, Lunango Gabriel; Shitima, Christina MwiveiA low level of household participation in conserving water resources threatens the future of human survival because water is a unique substance with no substitutes. In addition, despite diverse discussions regarding water accessibility and the need for conservation, the literature is even scarce on the linkage between these two important constructs. Therefore, this paper examines connectedness to water and its influence on household participation in water resources conservation in Singida Municipality, Tanzania. Using a quantitative study approach with a cross-sectional survey, primary data were collected from 391 households in Singida Municipality to investigate water accessibility, considering the aspects of physical access, economic access, and cultural acceptability, as well as the number of water conservation practices households engages in. The Structural Equation Model (SEM) analysis reveals a positive relationship between water accessibility and participation in water conservation practices (WCPs) at 1% (Z=7.34, p<0.01). The study recommends that policymakers, agencies, and water sector stakeholders need to enhance their efforts to provide clean and safe water services to all community members to uphold the right to water for everyone and increase the level of participation in water resource conservation.Item An in-depth analysis of Tanzania's export growth trajectory from 1992 to 2021(African Journal of Empirical Research, 2024) Utouh, Harold Martin Lemnge; Ng’wina, Shibabay JohnThis paper analyses Tanzania's export performance from 1992-2021. Exports remain an important aspect of earning foreign currency. To ensure the country's robust economic growth, it is also imperative to increase export value. To analyse Tanzania's export performance, time series data from the World Bank was used. The comparative advantage theory guided this study in analysing export performance. Also, the ARIMA model was used to figure out the relationship between export, FDI, and nominal exchange rate, and the study revealed that export, Foreign Direct Investment (FDI) inflows, and exchange rates have a relationship with export performance. The ARIMA model was used because of its effectiveness in forecasting and capturing patterns, trends, and seasonality. This study is important because it examines the importance of FDI and exchange rates on export performance. Furthermore, this study provides policymakers with actionable recommendations based on empirical evidence, helping them make informed decisions regarding export promotion initiatives, particularly in creating a conducive environment for FDI and the importance of managing nominal exchange rates. To stimulate the country's exports, governments sItem The impact of trade liberalization on the performance of Tanzania’s export sector – a time series analysis from 1980 to 2019(Oeconomia, 2023) Utouh, HaroldAim: This article aims to enhance understanding of the impact of trade liberalization on Tanzania’s export performance. As many studies conducted, both in developing and developed countries, have yielded mixed results and the relationship varies across different nations, it is difficult to provide a definitive answer to the question of whether trade liberalization affects Tanzania’s export sector without first conducting an empirical analysis. Methods: This study employs a quantitative research methodology because it allows for a larger sample size, greater objectivity, and accuracy. Due to the nature of the study and the data used, a statistical study design was chosen. Macroeconomic data spanning 1980 to 2019 was obtained from the World Bank and the Tanzania Bureau of Statistics to analyze the effects of trade liberalization on export performance using vector error correction and autoregressive distributed lag models. Results: The results reveal a significant positive correlation between trade liberalization and subsequent export performance, as well as the interdependencies between trade liberalization and foreign direct investment (FDI) strategies. There is a reciprocal relationship between trade liberalization and exchange rates, implying the significance of competent exchange rate management in enhancing export competitiveness. Conclusions: The study concludes that trade liberalization, FDI, and export performance have a long-term positive correlation. This implies that a carefully executed trade liberalization policy is crucial not only for the expansion of the export industry sector and the influx of capital but also for the transformation and development of the nation growth.Item Using a vector autoregressive approach on analysing the impact of regional trade on Tanzania economic growth(International Journal of Development and Management Review, 2024) Utouh, H. M; Tile, AThe study focuses on examining the impact that regional trade has on Tanzania's economic growth, using data collected from 1960 to 2021. It also examines the causal relationship between merchandise imports and exports and their effects on Tanzania's GDP growth rate. To establish the causal relationship between merchandise imports and merchandise exports and their impact on GDP growth, a non-experimental research design was employed. The analysis was performed by employing Engle-Granger Cointegration, as it helps in ascertaining whether the variable exhibits long-run relationships. A Vector Auto-Regressive (VAR) model was also utilised, incorporating important macroeconomic variables such as merchandise import and merchandise export. The model's impulse responses are consistent with the gravity theory of trade. The findings indicate a positive relationship between the rates of merchandise import and export and the growth rate of GDP. Additionally, the lagged growth rate of GDP has an initial positive impact on GDP growth in the current year. The model's impulse responses are consistent with the gravity theory of economics. The findings show a direct correlation between merchandise import and export rates and GDP growth rates. The study therefore recommends that Tanzania's government should prioritise policy measures that promote exports and foster favourable conditions for imports, as these dynamics contribute to the country's GDP growth.Item Factors affecting maize production in Kiteto district, Manyara region, Tanzania: Cross sectional design(Science Mundi, 2024) Utouh, H.MMaize is one of the most important food crops globally; however, its production in most developing countries has been facing several challenges that also affect the livelihood of the large number of smallholder farmers who highly depend on the crop for food and income. Therefore, to deepen understanding of the same, the current study explores factors affecting maize production in Kiteto district, Manyara, Tanzania. This study employed a cross-sectional research design to gather primary data from a randomly selected sample of 100 individuals. The data was analysed using the multiple linear regression technique. The findings revealed that farm size (0.0083, p<0.01), access to irrigation (0.0878, p<0.01), and access to improved seeds (0.0582, p<0.01) had a significant statistical influence on the level of maize production. Furthermore, regarding the challenges, the results were analysed through the utilisation of measures such as the mean, frequencies, and percentages. Furthermore, the study found that shortage of rainfall, maize price fluctuation, diseases, and pests were the main challenges facing maize farmers in the study area. The study findings recommend that to improve maize production, there is a need to increase accessibility to irrigation facilities, improved seeds, fertiliser, and modern farming techniques among smallholder maize farmers, and this may be done by the government in collaboration with the private sector.Item Foreign direct investment and industrialization in Tanzania admixture time series forecast analysis 1960 - 2020(Applied Economics Letters, 2023) Utouh, Harold M.L.; Kitole, Felician AndrewThis paper examines and forecasts the impact of foreign direct investment (FDI) on industrialization and industrial performance in Tanzania by using World Bank data spanning 1960 to 2020. The admixture time series analysis of Vector Autoregressive (VAR) and Vector Error Correction Model (VECM) has been extensively explored to provide accurate estimation. The need to examine FDI inflows is enormously based on domestic macroeconomic parameters that are stuck in many developing countries, including Tanzania, implying that FDI is necessary for growth and development now and in the future. According to the findings, FDI granger causes industrialization, and the more the sector thrives, the more granger causes FDI inflow. In the long run, FDI has a significant impact on Tanzanian industrialization growth, whereas the exchange rate (EXR) has a significant impact on industrialization growth in the short run. The study recommends the Bank of Tanzania to take appropriate measures to control poor-performing economic parameters such as the exchange rate, inflation, and the improvement of the money market in order to enhance capital availability and accessibility.