The impact of foreign debts on economic growth in Tanzania: evidence from 1988- 2020
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Date
2021
Authors
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Journal ISSN
Volume Title
Publisher
International journal of creative research thoughts
Abstract
The general objective of this research paper is to examine the impact of foreign debts on economic growth in Tanzania: Evidence from 2000 to 2019. A causal relationship research design was used in which time series data of 18 years were used to create data from variable. The research takes on the annual data from financial year 2000/01 to 2018/19. The sample size for the study was 18 observations. The data collected from different reliable sources which included the Ministry of Finance and Planning (MoFP), World Bank (WB) and the Bank of Tanzania (BOT). The analysis of the data obtained revealed that a total foreign debt stock has a positive impact on economic growth. Evidence to validate this comes from the computed P-Value (0.000) which is small at all levels of significance (5%). The long-term external debt stock does not have significant effect on economic growth. In difference, a short-term external debt appears to have significant impact on economic growth. However, the effect on the economy is minimal as evidenced by the dimension of coefficient. Usually, the research concludes that sustainability of the foreign debts was still below the required verge of sustainable foreign debts. Foreign debts have a positive impact on the economic growth while the long term impacts have insignificant impacts on economic growth. In contrast, the short term effect appears to have a positive significant impact. The Ministry of finance are suggested to take flexible loans, to assign on development projects and to make appropriate payment. And the CAG is should have full mandate to check up foreign debts and his or her suggestions must be followed by the Government.
Description
Full Article. Available at: https://www.researchgate.net/publication/350709550_The_Impact_of_Foreign_Debts_on_Economic_Growth_in_Tanzania_Evidence_from_2000-2019
Keywords
Foreign Debt, Economic Growth, Tanzania
Citation
Chindengwike, J. D., & Kira, A. (2021). The Impact of Foreign Debts on Economic Growth in Tanzania: Evidence from 1988–2020. no. May.