Department of Economics
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Item Agrarian Transformation and Rural Development in Tanzania(1983) Maeda, J. H. J.; Msambichaka, Lucian A.Item Agricultural Credit in Tanzania 1961-1966 / Le Crédit Agricole En Tanzanie 1961-66(1989) Lundahl, Mats; Msambichaka, Lucian A.The article deals with the history of formal agricultural credit in Tanzania during the first years of independence, up to the Arusha Declaration in 1967. During this period greater efforts than hitherto were made to reach the small African farmer and make him switch to improved methods of production. The period also saw the emergence of national policies in the monetary sector. Some old credit institutions were abolished and new ones were established. The foundations were laid for present rural lending policies. In quantitative terms little was achieved, however. In 1967-68 no more than 4,5 percent of all loans to rural households came from, inadequately functioning, public institutionsItem Agricultural Credit in Tanzania: A Peasant Perspective / Le Crédit Agricole En Tanzanie - Le Point De Vue Des Agriculteurs(1987) Amani, Haidari K. R.; Msambichaka, Lucian A.; Hedlund, Stefan; Lundahl, MatsCet article présente les résultats d'une enquête sur le crédit agricole qui s'est déroulée au mois de décembre 1984 dans les régions de Iringa, Dodoma et Morogoro en Tanzanie. On connait actuellement très peu de choses sur l'expérience des agriculteurs tanzaniens pour ce qui est la demande et l'offre de crédits. Au niveau gouvernemental, on met l'accent sur les besoins en crédits sans trop savoir si les agriculteurs partagent ce point de vue et sans connaître le volume des crédits disponibles dans les campagnes. Le plupart des agriculteurs interrogés n'ont pas d'épargne liquide ou n'épargnent que de petites sommes (il est bon d'ajouter toutefois que le bétail est une forme d'avoir très répandue). Il est indéniable qu'une demande de crédit existe et tout porte à croire que les prêts dont la finalité est la production agricole constituent la part la plus grande de cette demande. D'après les agriculteurs, le manque de capital nécessaire à la production agricole en limite son volume. Le quart seulement des agriculteurs interrogés reconnaissent avoir obtenu un prêt l'année précédant l'enquête et 40% de ces prêts proviennent de sources privées (non-officielles) avec, cependant, de grandes différences entre les régions. Les crédits officiels sont répartis de manière inégale entre les régions. Les connaissances sur les sources éventuelles de crédit à l'intérieur ou à l'extérieur des villages sont rudimentaires. Les possibilités d'emprunt sont ignorées par environ la moitié des agriculteurs interrogés. Les sommes à emprunter sont relativement petites — en règle générale inférieures à 1.000 shillings — et les prêts ne sont pas accordés pour plus d'un an dans la majeure partie des cas. Les taux d'intérêt sont bas pour les sources officielles comme privées et il n'existe aucun système de prêts à usure. Néanmoins, la majorité des agriculteurs interrogés préfère les crédits officiels au prêts accordés par des personnes privées.Item Aid Effectiveness to Infrastructure: A Comparative Study of East Asia and Sub-Saharan Africa. Case Study of Tanzania(2008) Likwelile, Servacius B.; Rutasitara, Longinus; Haule, Joseph O.The development challenge facing Sub-Sahara Africa (SSA), Tanzania in particular, relates to the highest levels of poverty. A number of strategies have been put in place to address this challenge the main focus being how to sustainably enhance growth which is necessary for poverty reduction. Among constraints to growth are lack of supportive infrastructure and weak institutional capacity (including minimal state effectiveness and weak societal engagement). Studies show that growth is positively affected by the stock of infrastructure assets and that income inequality declines with higher infrastructure quantity and quality (Ndulu et al., 2007), but for most SSA countries, growth is constrained by lack of supportive infrastructure and weak institutional capacity, including minimal state effectiveness and weak societal engagement. Key institutions, both public and private, are necessary for private sector growth, which is an engine of growth. How institutions are harnessed and proper linkages between actors developed is a matter developing countries have been and are still grappling with.Item Analyses of poverty in Tanzania: How well do they inform the policy process?(Tanzania Journal of Development Studies, 2005) Rutasitara, Longinus; Likwelile, Servacius; Luvanda, EliabTanzania is one of the poor countries that developed Poverty Reduction Strategy Papers (PRSP) towards the end of the 1990s under the aegis of the international financial institutions and support of development partners. One of the requirements was that the PRSP address the multi-dimensional nature of poverty and how to reduce it. This paper amplifies on this aspect and specifically the fact that comprehensive analyses of poverty for policy-making demand not only high quality data but also high capacity to make such analyses. The paper examines the level of poverty assessments available at the time of the preparation of Tanzania’s PRSP and implications for subsequent work. IItem Are Charcoal Makers Willing to Participate in a Scheme of Payment for Environmental Services: A Choice Experiment in the Coastal Forest of Tanzania(2010) Kahyarara, Godius W.Economic instruments such as Payment for Environmental Services (PES) have become very popular to jointly address poverty alleviation and sustainable management of natural resources. In this paper we focus on the suppliers of the environmental services in a case study in the Coastal Belt Forests of Tanzania. A Choice Experiment is conducted to determine charcoal makers' willingness to participate in a PES scheme and the compensation necessary to make them give up their destructive – but vital income generating – forest activities, mainly charcoal production. We find that this willingness does exist, especially if other cash generating alternatives are offered. However we also conclude that a PES alone will not be sufficient to halt the destruction of the Coastal Forests if nothing is done to curb the growing urban demand for charcoal.Item Attaining the Millennium Development Goals (MDGs): Challenges for Sub-Saharan Africa(Tanzania Journal of Population Studies and Development, 2006) Rutasitara, Longinus; Likwelile, ServaciusThis paper examines the prospects and challenges of achieving the MDGs in Sub-Saharan Africa (SSA) amidst widespread pessimism that SSA as a whole will not achieve most of the MDGs by the target date of 2015. It reflects on the state of MDGs in Africa. It is noted that record is “mixed” with some good performance on a few goals in a few countries. On average, the prospects are bleak. Lessons from experience indicate there are a number of constraints and the pre-conditions for accelerated progress towards MDGs in the SSA require both internal and external support. In agreement with recent reviews, it is recommended that countries integrate actions to achieve the MDGs in country-led poverty reduction strategies, improve the environment for private-sector, increase effort in domestic resource mobilisation, and scale up investments in human development and economic infrastructure and institutions for democratic governance. Further, countries need to nurture international partnerships with a view to increasing the level and effectiveness of aid and trade-related assistance.Item The Behaviour of Income Velocity in Tanzania, 1967-1994(1996) Ndanshau, Michael O. A.Tanzania's rapid expansion in domestic credit since the late 1960s has resulted in an increasing growth in money supply. This was given particular significance in the structural adjustment programme adopted in 1982 and the three-year economic recovery programme of 1986, commonly referred to as ERP-I, which was extended to ERP-II, also referred to as economic and social action programme.Item Bridging University Research to Development Policy(Tanzania Economic Trends, 2009) Rutasitara, LonginusThis paper examines the conditions that must be maintained for university-based research output to be effectively deployed to advance socio-economic development. It uses the university-government and university-industry linkages a conceptual framework and situates therein the ideal contexts that the researcher would take into account for the research output to have impact on policy making. Citing an example from the University of Dar es Salaam, a related challenge is pointed out of developing multi-disciplinary research agenda on problems which require multi-dimensional interventions.Item Budget Deficits, Money Supply and Inflation in Tanzania: A Multivariate Granger Causality Test, 1967–2010(2012) Ndanshau, Michael O. A.This paper investigates empirically the nexus between budget deficits, money supply and inflation in Tanzania by employing data for the period 1967 – 2010. Pair-wise Granger causality test established a one-way causal effect, running from inflation to budget deficit and the monetary base. These findings were supported by results from the Vector Error correction model (VECM) estimated. It is shown that there exist a significant inflation inertia and causal effect on budget deficit over the short-run. The VECM results showed that shift in monetary policy regime exerted a significant effect on inflation and budget deficits. Innovation of the ratio of budget deficit to money balances as alternatives for the traditional budget deficit to income ratio was found to lack significant effect on the results. Results are very indicative but highlight the importance of containing inflation to check its effect on budget deficits over the short-to long-run periods. The results also suggest that robust econometric results can be obtained by deflating budget deficits by monetary aggregates or income.Item Can Contract-farming Work for Non-Traditional Crop Exports? Insights from a 2007 Rural Survey in Tanzania(Orient Journal of Law and Social Sciences, 2008) Rutasitara, LonginusContract farming (CF) has evolved as an organisational framework providing farmers with a united bargaining front in the course of agricultural commercialisation. While in colonial Africa, Asia and Latin America out-grower schemes were associated with enclave plantation and estates farming for traditional export crops such as tea, rubber, sisal and sugar, in recent years contract farming has been adopted as an institutional innovation for promoting diversification into non-traditional agricultural exports. Diversification has been dictated by the instability of export earnings from the traditional commodity exports and a surge in foreign demand for organic foods. This paper examines how practical contracting is in poor rural areas. It identifies the prospects and practical contracting difficulties faced by smallholder farmers of paprika and onion, potential non-traditional exports, in Iringa region of Tanzania where a survey of 200 farmers was made in 2006.Item Can Deterrence per se reduce Crime Rate: Assessment of the Determinant of Crime Rate in Tanzania(UTAFITI, 2013) Lokina, Razack B.; Hinju, G.Item The Causal Relationship between Financial Development and Economic Performance in Tanzania(SSRN Electronic Journal, 2015-09) Aikaeli, Jehovaness; Mbellenge, Costantine RichardThis study determines causal relationship between financial development and economic performance in Tanzania. The study employs cointegration and vector error correction model techniques. Granger causality test was applied to ascertain causation between financial development and economic performance. Overall economic performance is measured by the GDP out-turn; and proxies of financial development are: the ratio of money supply to nominal GDP; and growth of credit to private sector. The results show that there is a stable long-run relationship between financial development and economic performance in Tanzania. Granger causality test indicates that the causality runs from financial development to economic performance.Item Clean Production and Profitability: An Eco-Efficiency Analysis of Kenyan Manufacturing Firms(Journal of Environment and Development, 2012) Marcyline, K.; Lokina, Razack B.This study examines the linkage between the profitability of firms measured by return on assets (ROA) and environmental performance measured by eco-efficiency and also the impact of a good environmental management system (EMS) on profitability and eco-efficiency of firms. These environmental management practices were captured by the type of EMS a firm adopts that classified firms as either environmental leaders or environmental laggards. To achieve this panel data regression model with ROA as the dependent variable and eco-efficiency scores as the regressors was performed. The results suggest that there is a potential gain in the profitability of the firm by improving eco-efficiency in resource use. Furthermore, proactive firms are found to perform better than reactive firms in terms of profitability and eco-efficiency but firms that combine both proactive and reactive EMS perform even better, which shows the benefit of adopting commitment-based approaches alongside the compliance-based approaches to environmental management.Item Clean Production Technology and the Environmental Efficiency of Kenyan Manufacturing Firms(2014) Marcyline, K.; Lokina, Razack B.Item Climate change and post-harvest agriculture(Routledge; RFF Press, Taylor and Francis Group, 2018-03) Chegere, Martin JuliusThis chapter looks at the role of post-harvest losses (PHL) in adaptation to climate change in sub-Saharan Africa. An estimated 10%–20% of the total grain produced in that region is lost before the food reaches consumers. This loss is valued in billions of dollars a year and could meet the annual calorie needs of 48 million people. PHL also waste labor, land, water, fertilizer and energy, and generate unnecessary greenhouse gas emissions, when resources are used to produce, process, and transport food that will not reach consumers. Losses occur during post-harvest activities, such as drying, storing, and transporting grain. PHL can be quantitative (e.g., bags of grain break and spill, or pests eat the grain) and qualitative (e.g., loss in nutritional value due to spoilage). A number of causes of PHL will be exacerbated by hotter average temperatures, greater rainfall variability, and more frequent extreme weather events. These factors are compounded by inadequate post-harvest handling practices and inadequate facilities and infrastructure. PHL can be reduced by investing in cold and dry storage, rural roads, rural and wholesale market facilities, and processing facilities. Training of farmers on proper practices and use of strategies such as hermetically sealed bags can reduce PHL.Item Coastal and Marine Environment Management Projects and Communities’ Livelihood: The Case of MACEMP – Mafia District(Tanzania Journal of Population Studies and Development, 2013) Lokina, Razack B.; Gervas, J.Item Commercial Banks Efficiency in Tanzania(SSRN Electronic Journal, 2006-12) Aikaeli, JehovanessEfficient banking system reflects a sound intermediation process and hence the banks' due contribution to economic growth. If commercial banks are functioning efficiently, monetary policies are likely to be effective. This study is motivated by the fact that, though banking sector is the largest part of the financial system in Tanzania, little is known about its efficiency status. Secondary time series data are used in empirical analysis of banks' efficiency. Non-parametric Data Envelopment Analysis (DEA) model is utilised in estimation of technical and scale efficiency, while x-inefficiency is estimated using multi-product translog cost function. Though banks were not full efficient in all respects, they performed fairly well during the 1998-2004 period. Nevertheless, the major conclusions show that banks still have the reasons to improve their performance.Item A Comparative Analysis of Firm Based Training in East African Manufacturing Sector: Does Level of Education Matter?(2006-05) Kweka, Josaphat; Aiko, Rose; Kessy, Flora; Ndlovu, Tchaka; Kabelwa, George; Kajiba, John; Mkenda, Beatrice K.Using World Bank's (2003) firm-level Investment Climate Survey (ICS) data for Kenya, Tanzania and Uganda, this paper examines extent in which education and skill levels are important determinants of Firm-based Training (FBT) in the East African manufacturing sector. The findings show weak evidence on complementary hypothesis between education and FBT but one which differs significantly across (perhaps depending on educational and training capacity of) different countries. Although other determinants of FBT apply differently to specific countries, size and technology characteristics are common determinants across the three countries. Furthermore, firms that care about HIV epidemic train more as a means to abate the negative effects of the epidemic on their human resources. Since FBT has potential to contribute to skill development, the findings imply that enterprise training should receive similar policy emphasis as education in the bid to enhance human resource development for growth and poverty reduction.Item A Comparative Analysis of Technical Efficiency of Smallholder Tobacco and Maize Farmers in Tabora, Tanzania(2015) Kidane, Asmerom W.; Tingum, Ernest T.The study presented here considers the relative efficiency of planting tobacco and maize in the tobacco-producing Tabora region of Tanzania. The study used a 2013 survey that was conducted among smallholder farmers in the Tabora region. The aim was to investigate whether farmers are better off planting tobacco or maize. The paper briefly reviews the importance of agriculture in general and tobacco planting in particular on the Tanzanian economy. The paper then reviews the methodology used in the analysis, The Frontier Production Function. The findings show relative inefficiency in both tobacco and maize production. When the two are compared, one finds a statistically significant higher efficiency in the production of maize compared to tobacco. In other words, maize farmers can produce the same output utilizing 76.83% of the current input, while the corresponding value for tobacco is 73.89 percent. After generating the efficiency index of each farmer and for each crop, a multiple linear regression was estimated to identify significant determinants of efficiency. For the production of maize, five significant explanatory variables were identified (gender, age, education, household size, and farm size). For tobacco production, five explanatory variables including the variable “feeling sick while curing tobacco” were significant. In other words, the efficiency equation for maize has significantly better fit. In general, the efficiency indicators suggest that Tanzanian small scale farmers are more productive planting maize than tobacco.