Does Export and Import Can Accelerates the Economic Growth? The Evidence e from Tanzania Using Time Series Analysis

Abstract

This paper was undertaken so as to investigate the link between Tanzania’s export and import on economic growth and highlight ways and potential sectors to increase Tanzania i’s export  and reduce imports.  This aim of this paper titled “Does Export and Import can accelerates the economic growth?:   The evidence e from Tanzania using Time series . Analysis was examined if the both export and import can accelerate the economic development of Tanzania.Regression analysis on data collected for Tanzania from 2002-2021.  Regression tool and Granger tools were employed to analyze the data. Unit root test, cointergration test, Diagnostic test and stability test were also used to assess the validity of the model. The result revealed that shows that there was positive relationship between exports and economic growth. This meant that the export is statistically (181%) have positive relationship with economic growth. This means have direct relation with economic growth in Tanzania. Other variables LNIM and LNOF were not statistically significant to influence the economic growth in Tanzania at the 95% confidence level This means that decrease in LNIM will lead to a decrease in economic growth, Thus, when exports increase, economic growth also increases. Then paper also advocated that the country should encourage other Potential sectors to boost Tanzania’s exports are Mining, Tourism, Industry and Agriculture The government should restrict imports through import tariffs and embargoes and provide subsidies and tax incentives to potential export sectors to mobilize domestic production and increase exports.

Keywords: Export, Import, Unit Root, Regression, Economic growth, Tanzania.

DOI: 10.7176/JESD/14-12-06

Publication date:June 30^th 2023