Doctoral Theses

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Browsing Doctoral Theses by Subject "Economic growth"

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    The impact of financial liberalization on economic growth in Tanzania
    (The University of Dodma, 2021) Hungu, Obed Abel
    This study aimed at examining the impact of financial liberalization on economic growth in Tanzania. The importance of this study stem on the fact that previous studies on the topic are of divided conclusions. Besides, the country under study has yet achieved the satisfactory economic growth that translates into poverty reduction among its citizens. As such, the study analysed short run and long run effect, possible economic pathways, and conditional factors of the relationship between financial liberalization and economic growth in Tanzania. The study employed time series data from 1970 to 2017 to explore the topic. Data were collected from Bank of Tanzania, National Bureau of Statistics, World Bank, and United Nations Conference on Trade and Development. The study was guided by time series design. Augmented Dicky-Fuller and Phillips-Perron were used for unit root test, Bounds Approach for co-integration, Error Correction Model and PROCESS Macro were applied for estimation of the study objectives. The findings show that there is a long run effect of financial liberalization on economic growth in Tanzania. The study also revealed that only one pathway (access to finance) and conditional factor (government size) actively enhances the growth of economy in Tanzania. This indicates that financial liberalization in Tanzania is fruitful and augments economic growth. However, its transmission effect through possible economic activities to economic growth is minimal to achieve the growth target. Therefore, the study recommends review of policies of access to finance activity and use of government funds in order to achieve targeted economic growth in Tanzania. The study contributes on literature by employing mediation and moderation analyses, analysing possible economic activities and conditional factors of the finance-growth nexus. Besides, the study synthesized financial and endogenous theories to come up with the possible economic activities through which financial liberalization spurs economic growth.
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    The Impact of fiscal and monetary policies on economic growth and stability in Tanzania
    (2019) Mwamkonko, Ally Mussa
    The study analyzed the impact of fiscal and monetary policies on economic growth and stability in Tanzania. The study questioned mechanisms that make one policy more effective than the other and traced efficient way of using these policies; which most prior empirical works did not mention. The study filled this gap in literature by analyzing fiscal adjustments of revenue and spending; comparing effects of money supply and interest rate; and finally deriving an optimal policy – mix. The study used time series data drawn from Bank of Tanzania, World Bank and International Monetary Fund. After the preliminary tests for unit roots and co-integration, the Johansen (ML) procedure was used to jointly estimate co-integrating vectors and error correction model. The study reveals that government spending on physical investment enhances growth and stability; government spending on human capital bolters growth but reduces stability; government spending on consumption retards growth and weakens stability. Also, the study found that government revenue positively relates to growth and stability. It is also evident that while external borrowing enhances growth, internal borrowing reduces it. Moreover, the results show that changes in money supply and interest rates have impact on growth and stability. But, interest rate has more predictable impact than money supply. Furthermore, the study reveals that fiscal and monetary policies affect growth and stability. But, fiscal policy is more effective than monetary policy. Finally, the study found that expansion policy - mix is optimal for Tanzania. To spur growth and stability government has to spend more on investments than consumptions. Also, government has to increase revenue (tax and non-tax) collection. In case of budget deficit, government revenues should be complemented by concessional external borrowing rather than internal borrowing and tied grants. Moreover, BOT has to adopt interest rate based framework instead of monetary aggregate framework. This should go along with widening and stabilizing financial market. Furthermore, government and BOT have to implement fiscal expansion and monetary expansion, respectively. The crossed fiscal and monetary policies cannot ensure growth and stability because monetary policy cannot absorb side effects of fiscal policy in Tanzania.