Impact of structural economic transformation on government revenue generation in Tanzania
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Date
2023
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Publisher
The University of Dodoma
Abstract
The key aim of this dissertation was to analyze the impact of structural economic transformation on government revenue generation in Tanzania. The specific objectives of the study aimed to examine the pattern of structural economic transformation in relation to the trend of government revenue from 1966 to 2020 in Tanzania; to investigate the effect of structural economic transformation on government revenue in Tanzania, and to analyze the causality between structural economic transformation and government revenue. The study used a co-integrating vectors and error correction model to analyze the time series data from 1966-2020.The results showed that structural economic transformation has negative impact on government revenue generation in Tanzania. The results however showed that the pattern of the structural economic transformation in Tanzania has been moving from more productive sectors to less productive sectors. The study showed that the direction of causality is from structural economic transformation to government revenue. The study revealed that Gross Domestic Product and inflation had a significant impact on government revenue generation in Tanzania. Based on the findings, the study suggests that policy makers should formulate policies that favour the increase and performance of industries as well as agriculture to change the patterns that have been observed in the economy of Tanzania. Likewise, the government should avoid negative inflation and control inflation at a single digit inflation which will eventually result into increase of its revenues.
Description
Dissertation (Ma in economics)
Keywords
Structural economic transformation, Government revenue, Revenue generation, Tanzania
Citation
Mwijage, U. (2023). Impact of structural economic transformation on government revenue generation in Tanzania (Master dissertation). The University of Dodoma.