Research Articles[FSS-Eco]

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    E-Government in marketing a country: A strategy for reducing transaction cost of doing business in Tanzania
    (International Journal of Marketing Studies, 2011) Kachwamba, Muhajir; Sæbø, Øystein
    There are limited studies examining the role of Investment Promotion Agencies (IPA’s) and their respective marketing techniques used in attracting Foreign Direct Investment (FDI). Using an exploratory case study approach, this article addresses this research gap by exploring the role of e-government as a promotion technique in eliminating barriers to FDI inflows in Tanzania; particularly barriers related to information accessibility and bureaucratic procedures facing foreign investors in acquiring relevant licenses and business permits. The findings indicate that foreign investors utilize information to create knowledge of business environment in the host country, though some additional information may not be found due to informational specificity of a particular investment project. In addition, the findings indicate that implementation of e-government has reduced some monetary and non-monetary transaction costs of complying with government authorities. The article contributes to the existing body of knowledge in the field of marketing by examining the role of e-government services in the public sector marketing within a macro-marketing domain.
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    Internet-based information and foreign direct investment (FDI) location decision making: An information cost perspective
    (Acadenic journals, 2012) Kachwamba, Muhajir; Sæbø, Øystein
    Information and communication technology (ICT) is considered to play an important role to reduce information cost for potential foreign investors. While a growing body of literature has suggested such connections, conceptual clarity is yet to be achieved. This study introduces a conceptual framework based on the Information-theoretic approach and transaction cost perspective to explore how ICT may reduce information cost. To illustrate our proposed framework, we apply it to examine the role of Internet-based information, published by the Investment Promotion Agencies (IPAs) on the information needs for foreign investors intending to invest in Tanzania. The findings indicated that general information on investment opportunities and regulatory entry procedures is mainly accessible through IPA´s web pages. Nevertheless, the findings revealed that more specific information on industry competitiveness is not found, although it is important for strategic investment location choice. Public information is combined with alternative sources of information to meet the information requirement for potential investors. Our findings indicate that Internet-based sources of information can reduce part of the information cost facing foreign investors, if properly organized. Our proposed framework extends the discourse on how ICT may influence information cost for foreign investors and contributes to our knowledge on the impact of ICT in the business sector focusing on the Government to business domain. Based on our findings we propose insights into studying and developing ICT-based services for IPAs in their efforts to attract Foreign Direct Investment.
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    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 Kasanda
    Tourism 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.
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    Examining the effect of child labour in the profitability of women owned enterprises: A case of microcredit supported enterprises in Tanzania.
    (Springer, 2018) Tundui, Charles S.; Tundui, Hawa P.
    This paper examines the effect of child labor in the profitability of women owned enterprises. The study covered 429 women respondents who had access to microcredit in Morogoro and Iringa towns. We used the Ordered Prohibit to model the relationship between the predictors and the outcome variable. The findings show that the use of child labor plays a more significant role in the profitability of women businesses than any variable included in the analysis. Results have also shown that owners who possess business skills, who have access to markets and those who do not separate business resources from household resources are more likely to experience a profit increase in their enterprises than otherwise. On the other hand, access to loans doesn’t seem to translate into increases in enterprise profit. From these results, we gather that as a poverty alleviation strategy, microcredit access and micro enterprising are not a panacea, but will require other supporting policies and services to enable women to find their way out of poverty. It is also important that job creation and employment patterns of microcredit supported enterprises are studied and valued accordingly.
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    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 initiatives
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    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 prospects
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    Social capital and willingness to pay for community based health insurance: Empirical evidence from rural Tanzania
    (Science and Education Centre of North America, 2014) Tundui, Charles; Macha, Raphael
    This study examines the effect of social capital on willingness to pay (WTP) for health services provided through community based health insurance schemes (Community Health Fund) in Tanzania. The study covered 274 household heads. We use prohibit regression analysis to model the relationship between the predictors and our outcome variable. Our results have shown that with the exception of religion, all other social capital variables have a positive and significant impact on the WTP for the Community Health Fund (CHF). Specifically, membership in social organizations and networks, trust among community members and trust of community members on scheme management are positively and significantly related to WTP. On the other hand, the age, education level, household size and number of children and participation in health insurance are not predicting WTP for CHF. Taken together, these results suggest that enhancing access to health care services in the rural areas and the sustainability of CHF would require building appropriate forms of social capital at individual and community levels. Specifically, CHF may increase enrolment through the existing social organizations and associations. Similarly, CHFs may well increase their membership if the avenues for trust building are created and nurtured
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    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.
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    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 Kasanda
    Foreign 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 taxes
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    Foreign direct investment (FDI) and its impact on employment creation: The case of manufacturing sector in Tanzania
    (International Journal of Current Innovation Research, 2016) Utouh, Harold M.L.; Rao, M Koteswara
    The purpose of this paper is to provide an analytical insight into Foreign Direct Investment (FDI) on employment creation in Tanzania, centring on the manufacturing sector which is held as a conduit for social economic development. It analyses the concerted efforts on the part of the government in attracting conspicuous FDI, and in particular, the relationship between the increase in FDI and employment generation. Tanzania started to adopt economic reforms and open policy in the mid-1980s. However, the speed of the Tanzanian government's established policy to attract FDI was more felt in the 1990s and since then the degree of successful efforts to attract FDI has increased. Methodology - The data used in this study consists of total employment, GDP and inward foreign direct investment (FDI). These annual data covered the period from 1980 to 2012 because it is only in this period that the data is available. The methodology to test the effects of the variables i.e., FDI, GDP and Employment creation has been confined to the least squares technique. The co-integration of the variables has been ascertained via the application of the Augmented Dickey-Fuller Test and is found to hold in the long run. Findings – the findings indicate that FDI has a positive and significant effect on employment generation in Tanzania and GDP is translated to have influenced the economic growth. Practical implications – A conducive business environment, a more liberalised economy, institutional restructuring and enhanced private sector-led development will lead to an increase in foreign investment. Local entrepreneurial capacity should be empowered if the country wishes to have sustainable growth and employment creation. Originality - The paper presents original findings based on research related to FDI and employment creation in the sector of manufacturing industries.
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    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 Mwivei
    A 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.
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    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 John
    This 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 s
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    The impact of trade liberalization on the performance of Tanzania’s export sector – a time series analysis from 1980 to 2019
    (Oeconomia, 2023) Utouh, Harold
    Aim: 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.
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    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, A
    The 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.
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    Factors affecting maize production in Kiteto district, Manyara region, Tanzania: Cross sectional design
    (Science Mundi, 2024) Utouh, H.M
    Maize 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.
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    Foreign direct investment and industrialization in Tanzania admixture time series forecast analysis 1960 - 2020
    (Applied Economics Letters, 2023) Utouh, Harold M.L.; Kitole, Felician Andrew
    This 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.
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    The nexus between foreign direct investment and nominal exchange rate, real GDP, and capital stock in Tanzania
    (Acta Sci. Pol. Oeconomia, 2023) Utouh, Harold; Tile, Augustino
    The paper aims to examine the relationship between FDI and the nominal exchange rate, real GDP, and capital stock in Tanzania using quantitative research methods and an econometric analysis. The analysis aims to provide insights into the factors that affect FDI and contribute to the existing literature on the relationship between FDI and economic growth. Methods: This study examines the relationship between FDI inflow, real GDP, capital stock, and the normal exchange rate in Tanzania using a robust research methodology. The study employs STATA 15 software and Akaike’s Information Criteria (AIC), Schwarz Information Criteria (SC), Final Prediction Error (FPE), and the Hannan Quinn (HQ) Information Criteria. In addition, the autoregressive model, the Johansen co-integration test, and the Toda-Yamamoto Granger causality (modified WALD) tests were employed to determine the optimal lag. Results: The results indicate a bidirectional relationship between the nominal exchange rate and FDI in Tanzania, with FDI inflows influencing the nominal exchange rate volatility and vice versa. Furthermore, the results indicate that real GDP, capital stock, and the nominal exchange rate exert a unidirectional influence on FDI influx in Tanzania. Conclusions: The nominal exchange rate and capital stock have positive and negative correlations with foreign direct investment. Like many other African economies, Tanzania remains vulnerable to external forces despite making significant strides in stabilizing the exchange rate. It is recommended that the Central Bank of Tanzania – along with those of other African nations with similar economic structures – maintain a stable nominal exchange.
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    Soft skills as a problem and a purpose for Tanzanian industry: Views of graduates
    (Economic Insights – Trends and Challenges, 2020) Utouh, Harold; Mutalemwa, Darlene; Msuya, Norah
    Recently, the aim of enhancing graduate employability for industries has been constantly on the Tanzanian policy agenda and has been defined as one of the priorities of higher education. Yet much evidence suggests the skills mismatch and hiring talent is of great concern to employers around the globe. When it comes to ‘hard’ data concerning ‘soft’ skills in the Tanzanian context, there is a dearth of empirically verifiable statistics from an academic standpoint. The study takes up this challenge to study what soft skills mean to the end-users – 391 postgraduate students who are completing their studies at a Tanzanian public university and are working and/or preparing to enter the labour market. Findings indicate that equipping graduates with the soft skills required in a particular job or industry for today and those of tomorrow is a global challenge, in Tanzania, it is even more worrisome. Based on the study findings, the study offers new insights into the importance of soft skills at the workplace as well as providing a foundation for universities to support the ‘job-readiness’ and ‘employability’ of graduates to meet industrial needs.
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    Engaging the Tanzanian diaspora in national development: What do we know and what are the gaps?
    (African Journal of Economic Review, 2015) Utouh, Harold L.M.; Mutalemwa, Darlene K.
    Over the past ten years, there has been a significant change in African governments’ perception of their diasporas. In the previous three decades, diasporas were not seen as a resource that countries of origin could tap into for their development needs. This is no longer the case. Now, diasporas are increasingly seen as positive actors: as countrymen and women abroad who can contribute to development efforts in their homelands. In this context, this paper reviews the literature on the major policies and initiatives used by countries to help support and promote diaspora engagement. To be specific, countries which have successfully engaged their diaspora in the national development process. The paper also highlights key factors of the success of Tanzania’s neighbouring countries and other countries. It attempts to relate these practices to the case of Tanzania, given the current social, economic, political and cultural contexts. The Tanzanian experience reveals a wide range of interventions taken to facilitate participation by its diaspora in national growth efforts. While these interventions are highly laudable- especially considering financial limits - there remain important weaknesses. Suggestions to improve existing measures are provided
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    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 Andrew
    Purpose: 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.