Hungu, Obed Abel2022-03-022022-03-022021Hungu, O. A. (2021). The impact of financial liberalization on economic growth in Tanzania (Doctorial thesis). The University of Dodoma, Dodomahttp://hdl.handle.net/20.500.12661/3401Doctoral ThesisThis 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.enFinancial liberalizationEconomic growthPoverty reductionEconomic activitiesFinance-growthGovernment fundsThesis