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2016•Business Education JournalOpen access

THE RELATIONSHIP BETWEEN EXPORT AND ECONOMIC GROWTH IN TANZANIA: GRANGER CAUSALITY APPROACH (1976 – 2013)

Japhet Zephyr Mtaturu

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Abstract

The main purpose of this paper was to analyse the causality between export and economic growth in Tanzania. This emanates from conflicting and overlapping study findings on the causal relationship between export and economic growth from other economies. The study employed Granger causality approach to analyse time series secondary data from 1976 to 2013. The results revealed the existence of feedback causality between export and economic growth. Thus, both export and economic growth granger cause each other for the case of Tanzania. This suggests that both export-led growth and growth-driven export strategies are vital for economic development of Tanzania

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What this paper is about

The main purpose of this paper was to analyse the causality between export and economic growth in Tanzania. This emanates from conflicting and overlapping study findings on the causal relationship between export and economic growth from other economies. The study employed Granger causality approach to analyse time series secondary data from 1976 to 2013. The results revealed the existence of feedback causality between export and economic growth. Thus, both export and economic growth granger cause each other for the case of Tanzania. This suggests that both export-led growth and growth-driven export strategies are vital for economic development of Tanzania

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Available abstract

The main purpose of this paper was to analyse the causality between export and economic growth in Tanzania. This emanates from conflicting and overlapping study findings on the causal relationship between export and economic growth from other economies. The study employed Granger causality approach to analyse time series secondary data from 1976 to 2013. The results revealed the existence of feedback causality between export and economic growth. Thus, both export and economic growth granger cause each other for the case of Tanzania. This suggests that both export-led growth and growth-driven export strategies are vital for economic development of Tanzania

Key concepts: Tanzania, Granger causality, Causality (physics), Economics, International economics, Monetary economics, Macroeconomics, Econometrics

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