Manufacturing Exports and Economic Growth in Tanzania

Mugisha Rweyemamu (), Jehovaness Aikeli () and Eliab Ruvanda ()
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Mugisha Rweyemamu: University of Dar es Salaam
Jehovaness Aikeli: University of Dar es Salaam
Eliab Ruvanda: University of Dar es Salaam

Tanzanian Economic Review, 2022, vol. 12, issue 2, 21-42

Abstract: This study examines the relationship between manufacturing exports and economic growth in Tanzania. The study is based on the export‐led growth model and the virtuous circle to analyse the relationship. Using secondary time series data, the study employed the Autoregressive Distributed Lags (ARDL) approach and the Granger causality test technique for analysis. It was found that manufacturing exports affects economic growth in the long-run; and that, for Tanzania, manufacturing exports are the ones causing economic growth, and not the other way round. Therefore, the study concludes that there is a significant relationship between Tanzania’s manufacturing exports and economic growth. It recommends policies, strategies and further efforts to be made to increase manufacturing products; encourage firms to produce quality products; invest in professional skills, education, and training; and increase external markets for manufactured products.

JEL-codes: L60 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ris:tanzer:0007

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