Dar es Salaam Campus College (DCC)

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Subject: search.filters.subject.Economic growth

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    Assessment of effects of tax-breaks on economic growth of Tanzania
    (Mzumbe University, 2019) Emmanuel, Kaisi
    This study intended to establish the effects of tax-breaks on economic growth of Tanzania. The study’s specific objectives were to determine the tax-breaks that have been available for businesses, to determine the rate of economic growth of the country from 2006 – 2018, and to determine the relationship between tax-breaks and economic growth of Tanzania. The study employed a quantitative approach to research; the study collected only secondary data from four government agencies. The collected data were then analysed using statistical software known as Gretl which provided descriptive, correlation and regression analysis findings. The study identified over 80 tax breaks available in Tanzania, and being enjoyed by government institutions, parastatal organizations, religious organizations, NonGovernmental Organizations (NGOs), Donor Funded Project (DFP), private companies and individuals, mining sector, oil/gas exploration, military duty free shop and Tanzania Investment Centre (TIC) in addition the study determined that the economy of Tanzania has been growing at an average rate of 6.7% over the period between years 2006 – 2018. Furthermore, the finding indicates an existence of an insignificant negative relationship between tax breaks and economic growth. The study concludes that too many tax breaks are been given, some do not even relate to business or investment of any sort. The government offices and international communities enjoy too much tax breaks. The fact that so many government offices have such benefits could lead to misuse of that privilege leading to the country losing more revenues, and recommends that rather than focusing on tax breaks as the main investor attraction criterion, the country should focus on creating a conducive business environment whereby there are good infrastructure such as affordable and reliable electricity, transport, high level education, unnecessary bureaucracies due to corruption practices, and political stability. Because other countries such as Mauritius, Costa Rica, Ireland and Malaysia have managed to attract huge number of investors with none or very little tax breaks OECD (2007), so why not in Tanzania. Furthermore, because there are other countries that have had a positive economic growth out of granting tax breaks as an investors’ attraction strategy (UNCTAD, 2012). This study recommends the government seeks to learn how others have managed to do it successfully, and then model their success.
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    Impact of international trade on economic growth of Tanzania
    (Mzumbe University, 2020) Nguto, Tumaini A
    Tanzania as an open economy engages herself in international trade which constitutes significantly a proportion of the country’s aggregate output. As in other developing countries, Tanzania regards trade as the main instrument for the development and growth of the country. Different empirical studies explain the existing relationship between international trade and the country’s economic growth. However, the empirical findings produce mixed findings which then developed more curiosity to conduct this study. Under this review, the researcher examines the impact of international trade on the economic growth of Tanzania, whereby goods exports, service exports, goods imports, and service imports make the independent variables. Otherwise, interest rate and inflation rate are the control variables while GDP makes the dependent variable. The study employs a time-series data-set for 31 years (1988 to 2018) gathered from the World Bank data site. Besides, Ordinary Least Squares (OLS) method is used to estimate a multiple linear regressions model, and the findings suggest that goods exports and service exports have a positive and significant impact on the economic growth of Tanzania; goods imports, service imports and exchange rate have a negative but significant impact on the economic growth while the inflation rate has a negative but insignificant impact on the economic growth. These findings correspond to the economic theories of international trade both classical and neoclassical theories which regard foreign trade as a catalyst for economic growth. However, foreign trade has both negative and positive impact on the growth of the economy. This study concludes that international trade plays a substantial role in the economic growth of Tanzania. Therefore the study recommends that the government of Tanzania should effectively enhance export promotion policies, import substitution strategy of industrialization, and strengthen investment in science and technology to increase Tanzania’s competitive edge in the international market
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    Analysis of the role of East African Community (EAC) in the development of cross-border trade: A case of united republic of Tanzania
    (Mzumbe University, 2020) Mbwambo, Iman Elineema
    This study investigated the role that the EAC has played in the development of the cross-border trade; while focusing on the impact of capital inflows, intra-trade and the effect of inflation to export Performance of Tanzania.The study employed the Gravity Model theoretical framework which used the gravity equation to describe the size of joint trade flows between two countries. The data was analyzed using the estimation technique – Pooled Mean Group (PMG). The study used a panel of four countries with annual data for the period 2003-2018 using the PMG technique. The outcomes of PMG revealed that FDI, GDP from the Partner States and inflation have all a positive statistically significant relationship with Tanzania exports, imports from the Partner States affects Tanzanian exports negatively except for population variable. The results of the PMG in the short-run have revealed that; changes in the rate of Rwanda’s import has a positive and statistically significant impact to Tanzania exports; the economic growth of Uganda has had a negative statistical significant relationship with Tanzania’s export performance. Otherwise, the positive change in the economic growth of Tanzania statistically increases the rate of export; and that, Burundi and Kenya have no short-run causality with the Tanzania export rate because all the variables are not statistically significant. The discoveries of this study have significant policy inferences to the economy of Tanzania. The biggest constraint to the study was the fact that data were sourced from diverse sources, which are conflicting, thus requiring an in-depth analysis to be conducted first. Future research can expand the number of countries to include other regional integrations that Tanzania is associated with, such as the Southern Africa Development Community (SADC).