Government Expenditure and Economic Growth in Tanzania: A Time Series Analysis (Published)
This study empirically examines the long-run and short-run relationship between government expenditure and Economic growth in Tanzania over the period of 1996-2014 making the use of annual secondary time series data. The Error Correcting Model (ECM) is employed to examine the long-run and short-run estimates of parameters. In addition to that the granger causality test is employed to determine whether government expenditures granger causes economic growth. In the long-run government expenditure is found to be statistically significant and has positive relationship with economic growth. The short -run estimates show there is no significant relationship between government expenditures and economic growth. The results of granger causality test show uni-directional causality running from economic growth to government expenditures. The government of Tanzania should improve in the allocation of resources in its development expenditure and social services expenditure and channel such expenditure to allow for private sector participation and infrastructure development in order to accelerate economic growth.
Keywords: Government Expenditure, Tanzania, Time Series Analysis, economic growth
FACTORS INFLUENCING HOLDING OF DROUGHT INSURANCE CONTRACTS BY SMALLHOLDERS IN BUNDA (Published)
The objective of this study was to understand factors influencing farmers’ holding of drought insurance contracts. Using questionnaires, a cross sectional survey with 410 randomly selected household heads was conducted to cotton growers from three wards of Bunda district in Tanzania, involving farmers who were in the program and non-participating farmers. Results from logistic regression analysis indicated that, perception of respondents about the drought incidence occurrences, household that previously suffered loss due to drought and the productive age with more experience in farming had negative influence on holding of drought insurance contract in the study area. Farmers’ needs should be considered and adequately incorporated into technical arrangements of program implementation to improve participation of farmers in the drought insurance program
Keywords: Contract holding, Cotton growers, Drought insurance, Tanzania