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Export Performance of the Horticultural Sub-Sector in Tanzania

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Trade and Investment in East Africa

Part of the book series: Frontiers in African Business Research ((FABR))

Abstract

This chapter examines factors that influenced the performance of Tanzanian horticultural exports from 1988–2018. Data were collected from the Bank of Tanzania, the National Bureau of Statistics and the World Bank. Co-integration techniques were employed to examine the long-run relationships among the series. The results showed that the real exchange rate, agricultural gross domestic products and foreign income had significantly influenced horticultural export performance in the long-run. Real interest rates were revealed insignificant. The Error Correction Model confirmed the existence of co-integration among the series. An important policy implication is that flexibility of the exchange rate movements in line with the fundamentals of the economy is necessary. Efficient policies for the stabilization of interest rates should be put in place (e.g. ceiling on lending rates, lowering inflation rate, etc.). These are considered important policy measures to improve the horticultural export performance of Tanzania that may also be relevant for other sectors as well.

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Acknowledgments

Author is thankful to Peter van Bergeijk and Binyam Afewerk Demena of Erasmus University, International Institute of Social Studies for technical guidance in carrying out the research work. The study was financially supported by Research on Poverty Alleviation (REPOA), the African Caribbean and Pacific Group of States (ACP Group) of this project, grant number FED/2019/408–112.

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Authors and Affiliations

  1. University of Dodoma, Dodoma, Tanzania

    William George

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  1. William George
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Correspondence to William George .

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Editors and Affiliations

  1. International Institute of Social Studies, Erasmus University Rotterdam, The Hague, The Netherlands

    Binyam Afewerk Demena

  2. International Institute of Social Studies, Erasmus University Rotterdam, The Hague, The Netherlands

    Peter A.G. Van Bergeijk

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George, W. (2022). Export Performance of the Horticultural Sub-Sector in Tanzania. In: Demena, B.A., Van Bergeijk, P.A. (eds) Trade and Investment in East Africa. Frontiers in African Business Research. Springer, Singapore. https://doi.org/10.1007/978-981-19-4211-2_13

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  • DOI: https://doi.org/10.1007/978-981-19-4211-2_13

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  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-19-4210-5

  • Online ISBN: 978-981-19-4211-2

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