Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021
AbstractThe study investigates the Tanzania manufacturing sector’s growth with a view to provide empirical lessons from macroeconomic factors with limited political regimes reflections. A vector error collection model was used to assess the influence of foreign direct investments (FDI), inflation (I...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2223419 |
| _version_ | 1797658396086763520 |
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| author | Lutengano Mwinuka Veronica Claud Mwangoka |
| author_facet | Lutengano Mwinuka Veronica Claud Mwangoka |
| author_sort | Lutengano Mwinuka |
| collection | DOAJ |
| description | AbstractThe study investigates the Tanzania manufacturing sector’s growth with a view to provide empirical lessons from macroeconomic factors with limited political regimes reflections. A vector error collection model was used to assess the influence of foreign direct investments (FDI), inflation (INF), export of product (EXP), power supply (PS), government expenditure (GoE), nominal lending interest rate (IRL), population growth rate (PGR) and exchange rate (EXR). The estimated value of the coefficient measuring the speed of adjustment toward long-run equilibrium is statistically significant and negative, implying that 41.6% of the short-run shocks can be corrected back to the long-run equilibrium immediately in the following year so has to prevent the model from explosion. Signs of INF, PS and IRL in the model estimation conform to expectations. Moreover, reducing production costs, increasing the trade openness, attracting FDI, offering appropriate government incentives and management of the foreign exchange rate have potentials of boosting the Tanzania’s economic growth. Thus, the government in collaboration with other stakeholders should work toward making the Tanzania manufacturing sector’s growth more competitive by creating conducive business environment that will lead to multiplier effects. |
| first_indexed | 2024-03-11T17:58:25Z |
| format | Article |
| id | doaj.art-d95367bfdf8947b6928261f87774b8d3 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-11T17:58:25Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-d95367bfdf8947b6928261f87774b8d32023-10-17T10:51:06ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-12-0111110.1080/23322039.2023.2223419Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021Lutengano Mwinuka0Veronica Claud Mwangoka1Department of Economics, University of Dodoma, Iyumbu, Dodoma, TanzaniaDepartment of Industrial and Construction Statistics, National Bureau of Statistics (NBS), Dodoma, TanzaniaAbstractThe study investigates the Tanzania manufacturing sector’s growth with a view to provide empirical lessons from macroeconomic factors with limited political regimes reflections. A vector error collection model was used to assess the influence of foreign direct investments (FDI), inflation (INF), export of product (EXP), power supply (PS), government expenditure (GoE), nominal lending interest rate (IRL), population growth rate (PGR) and exchange rate (EXR). The estimated value of the coefficient measuring the speed of adjustment toward long-run equilibrium is statistically significant and negative, implying that 41.6% of the short-run shocks can be corrected back to the long-run equilibrium immediately in the following year so has to prevent the model from explosion. Signs of INF, PS and IRL in the model estimation conform to expectations. Moreover, reducing production costs, increasing the trade openness, attracting FDI, offering appropriate government incentives and management of the foreign exchange rate have potentials of boosting the Tanzania’s economic growth. Thus, the government in collaboration with other stakeholders should work toward making the Tanzania manufacturing sector’s growth more competitive by creating conducive business environment that will lead to multiplier effects.https://www.tandfonline.com/doi/10.1080/23322039.2023.2223419macroeconomic variablespolitical settlementconducive business environmentcompetitiveness |
| spellingShingle | Lutengano Mwinuka Veronica Claud Mwangoka Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021 Cogent Economics & Finance macroeconomic variables political settlement conducive business environment competitiveness |
| title | Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021 |
| title_full | Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021 |
| title_fullStr | Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021 |
| title_full_unstemmed | Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021 |
| title_short | Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021 |
| title_sort | manufacturing sector s growth in tanzania empirical lessons from macroeconomic factors 1970 2021 |
| topic | macroeconomic variables political settlement conducive business environment competitiveness |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2223419 |
| work_keys_str_mv | AT lutenganomwinuka manufacturingsectorsgrowthintanzaniaempiricallessonsfrommacroeconomicfactors19702021 AT veronicaclaudmwangoka manufacturingsectorsgrowthintanzaniaempiricallessonsfrommacroeconomicfactors19702021 |