COSTECH Integrated Repository

Relationship between Foreign Direct Investment, Exports And Economic Growth In Tanzania: A Time Series Analysis

Show simple item record

dc.creator Bomani, Bertha, A
dc.date 2015-04-14T13:21:25Z
dc.date 2015-04-14T13:21:25Z
dc.date 2015-04-14
dc.date.accessioned 2018-03-24T13:36:05Z
dc.date.available 2018-03-24T13:36:05Z
dc.identifier http://hdl.handle.net/11192/423
dc.identifier.uri http://hdl.handle.net/11192/423
dc.description A Dissertation Submitted in Partial Fulfilment of the Requirements for the Award of the Degree of Masters of Science in Economics of Mzumbe University.
dc.description Foreign Direct Investment (FDI) and exports play a significant role in promoting economic growth in many countries. However, empirical studies have not found consistent results, with some literature indicating that FDI and export have adverse impacts to the economy. This study examined long run and causality relationships between FDI, exports and economic growth for Tanzania. The study used time series data for 30 years (1980- 2010) which were obtained from TIC and UNCTAD. By using Johansen test of cointegration, Vector Autoregression model and Granger causality test the study found that there was a single cointegrating vector. The equation was relating FDI and exports (as independent variables) to Economic growth, the dependent variable. Furthermore, there was unidirectional causality relationship with the direction from FDI and exports to GDP growth rate (economic growth). There was also a unidirectional causality with the direction from FDI to exports. Therefore, FDI Granger caused GDP growth rate and exports, while exports Granger caused GDP growth rate only. This further implied that, FDI have a direct and indirect causality to GDP growth rate. This observation necessitated the special consideration for making FDI working for growth. Likewise for total exports which had positive and significant relationship to economic growth. The findings in this study support the export-led growth hypothesis and FDI as the engine for economic growth. For export and FDI to effectively promote growth, the study recommends that policy frameworks and incentive packages should be competitive and vigorous enough.
dc.language en
dc.subject Investment
dc.title Relationship between Foreign Direct Investment, Exports And Economic Growth In Tanzania: A Time Series Analysis
dc.type Thesis


Files in this item

Files Size Format View

There are no files associated with this item.

This item appears in the following Collection(s)

Show simple item record

Search COSTECH


Advanced Search

Browse

My Account