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Causality between Agricultural exports and GDP and its implications for Tanzanian economy
(JEF, 2017) Alam, Fakhre; Myovella, Godwin
This study examined the causality between agricultural exports and GDP in Tanzania. It employed secondary time series data from 1980 to 2010. The study found evidence in support of a long-run relationship between agricultural exports. Moreover, there is an evidence that agricultural exports Granger-cause GDP growth but not the other way round. Considering the relationship between the two macro-economic variables, the promotion of agricultural exports can be used as a tool to promote economic growth and development in Tanzania. Currently, agriculture sector is constrained by factors, such as poor mechanization, non-tariff barriers, poor infrastructure, poor productive capacity and lack of proper policies to promote agricultural exports. Tanzania can further improve its agricultural exports by improving them, and addressing the problems related to supply side factors, including productive capacities in order to foster robust economic growth and development in the country.