Export Instability and Economic Growth in Tanzania
No Thumbnail Available
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Botswana Journal of Economics
Abstract
Description
Full text can be accessed at the following link http://www.ajol.info/index.php/boje/article/view/82935
This paper investigates the consequence of export earnings instability on growth in Tanzania. Applying time-series econometric technique on annual data for the period 1968-2008, a long-run relationship between export instability and growth is confirmed to be negative for aggregate exports. However, the relationship is stronger for traditional exports which dominate the export basket. This is consistent with the findings in most commodity-dependent developing countries that export instability is detrimental to economic growth. Reducing export instability is possible through diversification of the export basket and destination markets, with policy attention on resolving constraints to domestic production for exporting and export competitiveness and technological and skills upgrading.
This paper investigates the consequence of export earnings instability on growth in Tanzania. Applying time-series econometric technique on annual data for the period 1968-2008, a long-run relationship between export instability and growth is confirmed to be negative for aggregate exports. However, the relationship is stronger for traditional exports which dominate the export basket. This is consistent with the findings in most commodity-dependent developing countries that export instability is detrimental to economic growth. Reducing export instability is possible through diversification of the export basket and destination markets, with policy attention on resolving constraints to domestic production for exporting and export competitiveness and technological and skills upgrading.
Keywords
Tanzania, Developing Countries, Export instability, Economic growth, Traditional exports, Commodity price volatility, Export diversification