Trade implication of African Continental Free Trade Area: A case of United Republic of Tanzania
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Mzumbe University
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A Dissertation Submitted in Partial Fulfillment of the Requirements for the
Degree Master of Business Administration in Corporate Management
(MBA-CM) of Mzumbe University
The study assessed the trade implications of the African Continental Free Trade Area (ACFTA) in Tanzania. It is guided by three specific objectives which includes implication of creating single continental markets for goods and services, harmonization of trade liberalization and ways to resolve ACFTA challenges, which brought about three research questions. Data was collected using the questionnaires from the employees of the Ministry of Industry and Trade, Ministry of Foreign Affairs and East Africa Cooperation, Tanzania Private Sector Foundation (TPSF), and private companies including Bakhresa Group and Mohamed Enterprises. The collected data from the questionnaires and interviews was analyzed using the Statistical Package for Sciences (SPSS) version 23.0. Descriptive statistics were produced to provide information on the profile of the respondents. Multiple regression analysis was performed to show the relationship between study variables; specifically on the first and second specific objectives. Qualitative information was analyzed using a content analysis approach which was narratively described with themes to support the findings. Findings indicated that ACFTA supports free trade in a way that it is influenced by trade tariffs and quotas, competitive advantages, and foreign market expansions as independent variables. On the causal relationship between independent variables that include trade tariffs and quotas, competitive advantages and foreign market expansions have a positive and statistically significant effect on free trade practiced by Tanzania. The study recommends that political instability and one currency among members are mojor challenges faces AFCTA and proper solutions is needed to be addressed quickly incudes maintaining peace within and among boarders and unstable imports and exports should be provided on time so as to fast track free trade processes and attain the ACFTA common goals.
The study assessed the trade implications of the African Continental Free Trade Area (ACFTA) in Tanzania. It is guided by three specific objectives which includes implication of creating single continental markets for goods and services, harmonization of trade liberalization and ways to resolve ACFTA challenges, which brought about three research questions. Data was collected using the questionnaires from the employees of the Ministry of Industry and Trade, Ministry of Foreign Affairs and East Africa Cooperation, Tanzania Private Sector Foundation (TPSF), and private companies including Bakhresa Group and Mohamed Enterprises. The collected data from the questionnaires and interviews was analyzed using the Statistical Package for Sciences (SPSS) version 23.0. Descriptive statistics were produced to provide information on the profile of the respondents. Multiple regression analysis was performed to show the relationship between study variables; specifically on the first and second specific objectives. Qualitative information was analyzed using a content analysis approach which was narratively described with themes to support the findings. Findings indicated that ACFTA supports free trade in a way that it is influenced by trade tariffs and quotas, competitive advantages, and foreign market expansions as independent variables. On the causal relationship between independent variables that include trade tariffs and quotas, competitive advantages and foreign market expansions have a positive and statistically significant effect on free trade practiced by Tanzania. The study recommends that political instability and one currency among members are mojor challenges faces AFCTA and proper solutions is needed to be addressed quickly incudes maintaining peace within and among boarders and unstable imports and exports should be provided on time so as to fast track free trade processes and attain the ACFTA common goals.
Keywords
Trade, Trade union, Trade markets