Research Articles[FSS-Eco]
Permanent URI for this collectionhttp://192.168.30.20:4000/handle/123456789/131
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Item Microcredit, micro enterprising and repayment myth: The case of micro and small women business entrepreneurs in Tanzania(World Scholars, 2013) Tundui, Charles S.; Tundui, Hawa P.The aim of this article is to examine the sources and determinants of loan repayment among women microcredit clients in Tanzania. We surveyed a random sample of 286 business owners who were PRIDE microfinance programme clients in Morogoro and Iringa towns. The study focused on loan conditions, household characteristics and business management experience, skills and management practises by the business owners. Loan repayment difficulties were reported among 19.6 per cent of borrowers. Logistic regression results have shown that loan size, interest rate and duration of membership in the programme do not predict loan repayment. Instead the results have demonstrated that business skills and management practises play a very significant role. We also found household size, the number of household members with fixed salaries and decision making regarding loan use to have a significant influence on loan repayment. From the results, it is established that the factors that limit growth of women businesses are also liable for their repayment difficulties. These results may imply that for the borrowers to increase their avenues for loan repayment, it is imperative that the measures used by microfinance programmes to ensure that borrowers repay their loans they also include support services that enable clients to expand their businesses; increase profit levels and generate enough surplus for loan servicing and re-investment in the business. Such services could include training in business skills and management. This further suggests that there is a need for an integrated and holistic policy approach in supporting and promoting micro enterprising among the women rather than piecemeal initiativesItem 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.Item Forecasting effects of foreign direct investment on industrialization towards realization of the Tanzania development vision 2025(Cogent Economics & Finance, 2024) Utouh , Harold M. L.; Kitole, Felician AndrewPurpose: This paper aims to deepen understanding and knowledge regarding the impact of foreign direct investment (FDI) on the industrialization process. Many developing countries aspire to shift from agriculture-centric economies to achieve sustainable development through industrialization. Realizing this goal, however, has been challenging, prompting an examination of the sixty-year trends and effects of FDI on Tanzania’s industrialization trajectory. Methodology: This study employs a comprehensive approach utilizing time series models, specifically the Vector Autoregressive (VAR) model and the Error Correction Model (ECM), to analyze the dynamic influence of FDI on industrialization. By forecasting the five-year trajectory of industrial growth and FDI inflows using data from the Bank of Tanzania and the National Bureau of Statistics spanning 1960 to 2020, this methodological framework aims to provide a nuanced understanding of the FDIindustrialization relationship, contributing valuable insights to the economic development discourse. Findings: The study’s results highlight the significant role of FDI in shaping both short- and long-term industrial progress, which is critical to advancing Tanzania’s industrialization goals. Conversely, factors like exchange rates predominantly impact the short-term industrial landscape. Forecasts from the analysis indicate a projected decline in both FDI and industrialization from 2020 to 2022, followed by a notable upturn from 2022 to 2025. This underscores FDI as a key driver for integrating agriculture-based economies into global value chains, facilitating economic upgrading through capital accumulation—a fundamental catalyst for sustained industrialization.Item Foreign direct investment (FDI) into Tanzania manufacturing sector for promotion of employment : A demystification(Int. Journal of Management and Development Studies, 2016) Utouh, Harold M. L.; Rao, M KoteswraLately, the African Sub–Saharan nations have witnessed massive inflows of FDI, Tanzania inclusive. This calls for the need to evaluate the effect of the FDI on the economy of the recipient nations. A range of theoretical and empirical literature suggests various links through which FDI exert a positive impact on the economy of the recipient country, including the positive effect that FDI have on growth and employment creation. This paper used secondary data and time series data from 1990 to 2012 and argues that there exists a positive relationship between FDI inflow and Economic growth. This means that the FDI inflows in the industrial sector have a direct positive impact on economic growth in Tanzania. The study also confirms that there exists a positive relationship between FDI inflow in the manufacturing sector and employment creation.Item Deciphering the drivers of food security in Tanzania: Non-experimental research design(SCIENCE MUNDI, 2024) Sesabo, Jennifer K.Food security is a pressing global concern, particularly in developing countries such as Tanzania, where rural areas, predominantly inhabited by smallholder farmers, bear the brunt of its adverse effects. This study looks into the determinants of food security among smallholder farmers in Tanzania, utilizing data from the agriculture sample census survey of 2019/20 conducted by the National Bureau of Statistics (NBS). Employing a Non-experimental research design, the study used a probit regression model to estimate key factors influencing food security. The results underscore the significance of factors such as irrigation (-0.906, p<0.01), extension services (-0.040, p<0.05), crop storage (-1.473, p<0.01), land ownership (-0.070, p<0.01), and female land ownership (-0.909, p<0.01) as crucial determinants of food security in Tanzania. The study advocates prioritizing community-based irrigation for reliable water sources, expanding targeted extension programs, investing in modern crop storage, ensuring secure land tenure, implementing comprehensive seed subsidies, and adopting a holistic approach to soil fertility management. Policymakers are urged to support these measures to enhance food security among smallholder farmers in Tanzania, promoting resilience, productivity, and sustainability.Item Climate change, food security, and diarrhoea prevalence nexus in Tanzania(Humanities and Social Sciences Communications., 2024) Kitole, Felician A.; Mbukwa, Justine N.; Tibamanya, Felister Y.; Sesabo , Jennifer K.The impact of climate change on food security and public health has hindered poverty reduction efforts in developing nations, including Tanzania, resulting in the impoverishment of millions and compromising both health and food production. To unravel these complex interactions, rigorous scientific research is indispensable. Leveraging three waves of the Agriculture Sample Census (2002/03, 2007/08, 2019/20), this study meticulously examines the interplay between climate change, food security, and diarrhoea prevalence in Tanzania. Employing Instrumental Variable Probit and Control Function Approach models to address endogeneity and heterogeneity, temperature anomalies serve as instrumental variables. The findings reveal a substantial impact of climate change on both food security (−0.331142, p < 0.01) and diarrhoea incidence (0.214602, p < 0.01). These results signify that climate change places significant stress on food security, rendering households more susceptible to insecurities, and heightens health concerns through increased diarrhoea prevalence. This underscores the urgency of prioritizing public health and well-being through an agricultural lens in climate change mitigation. A comprehensive strategy is imperative, entailing a synergy of sustainable agricultural practices, robust public health interventions, and targeted policies to fortify the adaptive capacity of communities. Special emphasis should be placed on cultivating climate-resilient agricultural systems, ensuring food security, and implementing health programs tailored to address the unique challenges posed by climate-induced factors. Moreover, community engagement and awareness initiatives play a pivotal role in fostering a collective understanding and commitment to sustainable practices, contributing to the overall resilience of societies amidst the challenges of climate changeItem Determinants of household food expenditure in Tanzania: Implications on food security(Agriculture &Food Security, 2024) Ndakije Furaha R.; Sesabo,Jennifer K.; Lihawa, Robert M.; Mkuna, EliazaFood expenditure in developing countries particularly those in sub-Saharan Africa constitutes about 65–70% of total household expenditure. Existing literature on the determinants of household food expenditure in developing countries have mixed results. Thus, this study aimed at examining the determinants of household food expenditure in Tanzania and their implications on food security using country representative data from the 2017/18 household budget survey. The Two-Stage least squares (2SLS) regression analysis was used as method of analysis. Results show that, on average, monthly household food expenditure in Tanzania is about TZS 159,072.80(≈ US $ 69.2). Food expenditure exhibited a non-linear relationship with age of household head with income elasticity of 0.72%. Expenditure also increases with household size, household head sex, education, asset ownership, group membership and marital status while being located in rural areas is negatively associated with food expenditure. To increase household’s food expenditure with dietary diversity for improved health, strategies aiming at improving household income, family planning, gender equity, education and social cohesion are important which will further increase household’s food security.Item Navigating the economic landscape: A comprehensive analysis of government spending, economic growth, and poverty reduction nexus in Tanzania(Applied Economics Letters, 2024) Kitole, Felician A.; Msoma, Liberati J.; Sesabo, Jennifer K.This study delves into the intricate nexus between government expenditure, GDP per capita, and poverty reduction in Tanzania. Employing Granger causality analysis, Vector Autoregressive (VAR) and Vector Error Correction Model (VECM) on the World Bank dataset spanning from 1990 to 2022 the study unveils dynamic relationships and crucial insights for policymaking towards poverty free society. The findings underscore significant directional causation between government expenditure and GDP, underscoring their pivotal roles in poverty alleviation. Furthermore, the study reveals that while an increase in gross domestic per capita initially reduces poverty, it exacerbates its prevalence in the long run. Conversely, government spending emerges as a consistent force in reducing poverty across both short and long-run periods. These results emphasize the imperative need for Tanzania and other developing nations to comprehend these interconnected factors, facilitating the formulation of effective strategies that foster inclusive growth and propel the nation towards sustainable development.Item Cooking energy choices in urban areas and its implications on poverty reduction(International Journal of Sustainable Energy Volume 42, 2023 - Issue 1, 2024) Kitole Felician A.; Tibamanya, Felister Y.; Sesabo, Jennifer K.Developing nations face higher stakes in the race towards a cleaner energy future, where it's a matter of life, wealth, and basic human needs. Using Tanzania Panel Survey data, this study examined urban households' cooking energy choices and their impact on reducing poverty. Employing advanced statistical models, it found that traditional energy sources still dominate cooking methods, and households relying on them are more likely to be trapped in poverty. Clean energy sources, on the other hand, reduce poverty prevalence. Education and income diversification programs can facilitate an immediate shift towards clean energy and achieve Sustainable Development Goals. This study highlights the urgency of the situation and the need for decisive action towards a cleaner, equitable world for all.Item Exploring the nexus between health status, technical efficiency, and welfare of small-scale cereal farmers in Tanzania: A stochastic frontier analysis(Journal of Agriculture and Food Research, 2024) Kitole, Felician A; Tibamanya, Felister Y; Sesabo, Jennifer KCereal production is important component of Tanzania's agricultural sector, as it provides food security and income for a significant portion of the population. However, low levels of technical efficiency and the negative impact of ill-health on cereal productivity have posed significant obstacles to the welfare of small-scale farmers in the country. This study estimates the technical efficiency of cereal producers in Tanzania, investigates the relationship between farmer health and cereal productivity, and establishes a link between technical efficiency and the welfare of smallholder farmers. Using data from the Tanzania Agriculture Sample Census survey 2019/20, the stochastic frontier production function was used to estimate technical efficiencies, while Tobit and instrumental variables models analyzed the impact of health on cereal production efficiency and the effects of efficiency on the welfare of cereal's small-scale farmers respectively. The findings indicate that the overall technical efficiency of cereal producers in Tanzania is 44.44%, with pure technical efficiency standing at 56.50%. In addition, poor health reduces the likelihood of cereal productivity efficiency by 0.297 (p < 0.01). In addition, efficiency was found to significantly improve household welfare, as it increases food security (0.35327, p < 0.01), household income (0.2914, p < 0.01), and nutrition status by reducing malnutrition (−0.36607, p < 0.01). The study recommends that rural agriculture development programs include health components to increase productivity, sustainability, and ultimately the standard of living of rural communities.