The dynamics of trade liberalization, export performance, and economic growth in Tanzania: a time series analysis 1980–2020

Harold M. L. Utouh ()
Additional contact information
Harold M. L. Utouh: Mzumbe University, Economics Department

Journal of Social and Economic Development, 2025, vol. 27, issue 3, No 11, 957-983

Abstract: Abstract Trade liberalization plays a key role in enhancing export performance and promoting economic development by expanding market access and improving competitiveness. However, despite its potential, trade liberalization has not progressed smoothly in developing countries, often hindered by challenges such as weak governance, economic constraints, and inadequate institutional support. Therefore, this study explores the relationship between trade liberalization, export performance, and economic growth in Tanzania, using data from 1980 to 2020. Employing a time series design and the Autoregressive Distributed Lag (ARDL) model, the findings reveal a significant positive correlation between trade liberalization and export performance, indicating that a more open economy is associated with a stronger export sector. Furthermore, exports significantly contribute to economic growth, underscoring their role as a key driver of sustained development. Additionally, governance quality, private sector size, and the time required to start a business emerge as critical factors affecting both export performance and economic growth. Based on these insights, the study recommends strategic measures such as trade promotion, further liberalization, governance reforms, and private sector support. Streamlining business procedures to improve the ease of doing business is also highlighted as essential for fostering economic growth. Implementing these policy measures can help Tanzania and other developing nations unlock their export potential, attract investment, and promote inclusive and sustainable growth.

Keywords: International trade; Trade liberalization; Globalization; Free trade area; Autoregressive distributed lag (ARDL); Economic growth (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40847-024-00395-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jsecdv:v:27:y:2025:i:3:d:10.1007_s40847-024-00395-9

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40847

DOI: 10.1007/s40847-024-00395-9

Access Statistics for this article

Journal of Social and Economic Development is currently edited by M.G. Chandrakanth, D. Rajasekhar, Anand Inbanathan and S. Madheswaran

More articles in Journal of Social and Economic Development from Springer, Institute for Social and Economic Change
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().