The Mining Sector On Economic Growth In Tanzania: Time Series 1982-2011: Var Model  

Abstract Category: Accounts and Economics
Course / Degree: Msc. Economics
Institution / University: Mzumbe University, Tanzania
Published in: 2015

Dissertation Abstract / Summary:

This study aimed at investigating the contribution of mining sector on economic growth in Tanzania. Annual time series data for the period 1982-2011 collected from the Central Bank of Tanzania bulletins and Ministry of Energy and Minerals was employed. The variables of the study were Gross Domestic Products as a measure of economic growth, mineral exports, mineral revenue and foreign direct investment. The study employed Vector Autoregressive Model technique to estimate and test the hypothesized relationships. Prior to estimating and testing the relationships a test of stationarity using the Augmented-Dickey Fuller (ADF) test was performed.

The ADF test result shows that, all variables were not stationary at levels. The variables were differenced once and then ADF test was conducted against them where all variables were found to be stationary, hence Johansen Cointegration test were used to test for the long-run relationship among variables, which proved that there were no long run relationship among variables, which guided me to use unrestricted VAR. The regression problems were diagnosed and revealed that there were neither the problems of autocorrelation, heteroscedasticity nor multicollinearity. The VAR results indicate that Mineral Revenue and Foreign Direct Investment (FDI) have positive relationship with economic growth while Mineral Export has negative relationship with economic growth.

Thus, the study concludes that foreign direct investment and Mineral revenue are significantly related with economic growth in Tanzania for the period of 1982 to 2011. This implies that the Government of Tanzania should put forth policies that promote inflow of foreign direct investment and reviewing strategies on minerals revenues such as mineral policies, MDAs and revenues on royalties and taxes so as to enhance the sector to contribute to the economy.

Dissertation Keywords/Search Tags:
Gross Domestic Products, mineral exports, mineral revenue and foreign direct investment

This Dissertation Abstract may be cited as follows:

Submission Details: Dissertation Abstract submitted by Andendekisye Mbije from Tanzania on 14-Dec-2015 08:02.
Abstract has been viewed 812 times (since 7 Mar 2010).

Andendekisye Mbije Contact Details: Email: andendekisye@gmail.com Phone: +255783563311

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