Determinants of export performance in Tanzania

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dc.contributor.authorRwenyagila, Geofrey A.
dc.date.accessioned2024-05-23T11:30:52Z
dc.date.available2024-05-23T11:30:52Z
dc.date.issued2013
dc.descriptionA dissertation submitted in partial fulfillment for the requirements of the award of Master of Science Degree in Economics (MSc. Economics) of Mzumbe University
dc.description.abstractTanzanian economy is characterized by a large traditional rural sector and a small modern urban sector. Agriculture, accounts for about half of GDP, it contributes about 85% of exports, and employs 80% of the work force. However in the recent years tourism and mining have become the largest foreign exchange earners. Statistics show that the value of traditional exports remained minimal compared to nontraditional exports, whereby the value of non-traditional exports were US$ 2,270.6 million and US$ 1,704.5 million in 2008 and 2007 respectively, representing to an increase of 28.8 percent (Economic Survey, 2008). On the other hand the value of traditional exports were USD 319.7 million and USD 418.4 million in 2008 and 2007 respectively (URT, 2008). This study examined factors affecting export performance in Tanzania using a time series data for the period between 1990 and 2009. Specifically, the study analyzed the influence of macroeconomic factors such as Foreign Direct Investment, Gross Domestic Product, inflation rate, real exchange rate and terms of trade. The main proposition of the study was that macroeconomic factors significantly influence export performance. In testing this proposition, three regression models were estimated for total export, traditional exports and non-traditional exports. Empirical results and analysis indicated that real exchange rate and foreign direct investment were significant to export performance in all sectors that is total export, traditional and nontraditional exports. Gross Domestic Product was also found significant in all sectors except traditional sector. However, Inflation Rate and Terms of Trade were found significant determinants to total export and traditional exports. The same variables were found insignificant to nontraditional exports. The study concludes with a recommendation to improve export performances for both traditional and nontraditional exports, as well as to diversify export base of the country by formulating good trade policy, attract more Foreign Direct Investment, improve infrastructure and create good business environment.
dc.description.sponsorshipPrivate
dc.identifier.citationAPA
dc.identifier.urihttps://scholar.mzumbe.ac.tz/handle/123456789/810
dc.language.isoen
dc.publisherMzumbe University
dc.subjectThe classical theory of International trade
dc.subjectPost – heckscher-ohlin theories of trade
dc.subjectThe product cycle theory
dc.titleDeterminants of export performance in Tanzania
dc.typeThesis
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