Tanzania Manufacturing Export and Growth: A Cointegration Approach

No Thumbnail Available

Date

Journal Title

Journal ISSN

Volume Title

Publisher

University of Dar Es Salaam

Abstract

Description

This paper examines the long run relationship between exports and growth of Tanzania manufacturing sector. It does so by estimating an endogenous growth model on time series data from 1961 till 2010. The paper also estimates the short -term dynamic behaviour of Tanzania's growth function of manufacturing value added via the error correction model. The results suggest a long run relationship between exports and growth. Analysis of aggregate statistics of trends in performance of Tanzania manufacturing suggest that manufactured exports have grown faster than growth in recent years due to the fragmentation and internationalization of industrial activity. Furthermore the paper shows that the error correction term is correctly signed and statistically significant. Tanzania has experienced a positive growth ranging at 5 percent annually for the last decade from 2000s.

Keywords

Exports, Growth, Cointegration Analysis

Citation