Financial Development and Economic Growth in Tanzania: An Empirical Investigation
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2019, Vol 8, Issue 8
Abstract
Tanzania economy like of many other emerging market have seen rapid increase number of banks locally and foreign owned since financial sector liberalization in 1990’s even though clear impact of financial sector on economic growth is hard to be singled out. The paper investigates empirically the long run relationship between selected proxies of financial development and economic growth in the Tanzanian context. Using the vector error correction model (VECM), the study finds that financial development is cointegrated with economic growth. That is there is a long run relationship between chosen proxies of financial development and economic growth in the country. This paper used broad money supply M2, foreign direct investment, customer deposits in foreign and domestic banks, credit extended by foreign and domestic banks as percentage of GDP as proxies for financial development. While per capita growth rate used to measure economic growth. The results also show the need to develop even further the financial sector through appropriate regulatory and macroeconomic policies in order to ensure sustainable economic growth as well as economic development. For robustness of the results other test were also performed in this study such as Augmented-Dickey Fuller unit root test and Johansen cointegration test.
Authors and Affiliations
Mnaku Honest Maganya
Keywords
Related Articles
- EP ID EP565316
- DOI 10.6007/IJARBSS/v8-i8/4470
- Views 71
- Downloads 0
Development of a Generic Model for the Preservation of Primary Research Data Based Digital Resources Life Cycle
This paper discusses the development of a generic preservation model for the preservation of social science primary research data and records created by research institutions and related organizations in Malaysia. This p...
Understanding The Christian Community’s Stance towards the Muslim Community in Sabah: After the Ban on the Usage of the Term Allah
The Muslim-Christian relationship dates back to more than 1400 years. Over the years, many incidences have contributed to the fluctuation in the relationship between the two religions. In the Malaysian context, the pract...
Experience as Moderating Effect on the Relationship between Attitude and Perception with Behaviour of Religious Tolerance among Youths in Malaysia
This study aims to investigate the moderating effects on the relationship between the attitudes and perceptions of youth religious tolerance behaviour. Typically experience affects perceptions and attitudes, and attitude...
The Relationship between Food Product with the JAKIM Halal Certification and Performance of Certified Halal Food Manufacturers
Due to the continuous demand and the importance of Shariah compliance of halal food to the Muslims consumers, this study examined the impact of trust and safety of food product with the JAKIM halal certification towards...
Comparative Analysis of Teacher Clinical Experience Guiding Principles in Selected Teacher Training Institutions Around the World
Clinical experience is crucial in developing student teachers’ conception about the teaching profession. They are required to make decisions in specific situations and context hence they need to draw on their beliefs, as...