The impact of Exports and Imports on Economic Growth in Tanzania

The impact of Exports and Imports on Economic Growth in Tanzania

  • Hana MOUSSAOUI Department of Applied Economics Research, Faculty of Economics and Management of Sfax, TUNISIA
Keywords: Economic growth, Trade, Granger Causality, VAR


The purpose of this study is to look into how trade has affected Tanzania's economic development. We utilize gross domestic product to measure economic growth and exports and imports to measure trade. (1) Is there a correlation between exports, imports, and economic growth? (2) Do those Variables have a long- or short-term relationship with one another? (3) Exist any causal links between the variables? (4) Which way does the causality run? Annual time series data from World Development Indicators (WDI) were used from 1962 to 2019. Vector auto regression models have been estimated using linear regression techniques. Our results showed that the VAR model was appropriate, and that GDP, exports, and differences were initially stationary. Our results showed that the VAR model was a suitable one, and that GDP, exports, and imports were stationary at initial differences but not at levels. As a result, the third series was merged of order two, and the first two series were integrated of order one. There was no long term equilibrium relationship between the three series, according to tests for cointegration, which show that the three variables were not co integrated. The causality test revealed that GDP was influenced by imports and exports. On the other hand; we discovered that exports and economic growth are causally related in just one direction. But there was a two-way causal relationship between GDP and imports. These findings show that exports and imports were regarded as the main drivers of economic growth in Tanzania.




Alimi, S., & Muse, B., (2013). Export - Led Growth or Growth – Driven Exports? Evidence from Nigeria. British Journal of Economics, Management & Trade 3(2): 89-100.
Bakari,S., (2016). Impact of exports and imports on economic growth in Canada: empirical analysis based on causality." MPRA Paper75910.
Chor Foon,T., and Salah,A, (2019). Logistics performance, exports, and growth: Evidence from Asian economies. Research in Transportation Economics Volume 78, December 2019, 100743
Dickey, D., (1979). Distribution of estimators of Autoregressive Time Series with a Unity Root. Journal of the American Statistical Association, 74, 427-31 .
Engle, R., (1987). Cointegretion and Error Correction: Representation,Estimation and Testing. International Management Accounting Conference.
Harvie, C., And Lee H., (2003). Export Led Industrialisation and Growth – Korea’s Economic Miracle 1962-89. University of Wollongong, Economics Working Paper Series 2003.
Hatem, M., (2016). Determinants of Economic Growth in the Kingdom of Saudi Arabia:An Application of Autoregressive Distributed Lag Model. Applied Economics and Finance. Vol. 3, No.1 .
Hussain, A., (2015). Impact of Exports and Imports on Economic Growth: Evidence from Tunisia. Journal of Emerging in Economics and Management Sciences (JETEMS) 6(1): 13-21 (ISSN: 2141-7024)
Karamanaj, G., (2014). An empirical study on import, export and economic growth in Albania. Academic journal of interdisciplinary Studies. Vol.3,No, 3, June, 2014 .
Khan, D., (2012). Exports, imports and economic growth nexus: Time series evidence from Pakistan. World Applied Sciences Journal.18 (4): 538-542,2012 .
Palley, T., (2011). The Rise and Fall of Export-led Growth, Working Paper No. 675, July 2011.
Philips, P., (1988). Testing for a Unit Root in Time Series Regression. Biometrika, 75(2), 335- 46
Ray, S., (2011). A Causality Analysis on the Empirical Nexus between Export and Economic Growth: Evidence from India. International Affairs and Global Strategy 1: 24-38.
Sahoo, A., (2014). Productive Performance of Indian Mining Industry. A cointegretion and causality analysis for Indian. Resources policy. 42, (2014), 27-34 .
Sangho Kim., (2007). Could Imports be Benefial for Economic Growth. ERD WORKING PAPER SERIES NO.103 .
Serhat Yuksel, S., (2016). Causality Relationship between Import, Export and Growth rate in Developing countries. International Journal of trade and finance, Vol. 2, Issue 1, 2016, 147- 156 .
Shirazi N., (2005). Export-Led Growth Hypothesis: Further Econometric Evidence from South Asia. South Asia: Trading
Shan, J.,& Tian, G., (1998). Causality between exports and economic growth: the empirical evidence from Shanghai. Australian Economic Papers, 37 (2), 195-202.
World Bank (2020).
Yelwa, M., & Diyoke, K., (2013). An empirical investigation of export-led growth amongst some selected ECOWAS countries: an alternative to FDI? European Journal of Management Sciences and Economics, 1(1), 30-48.
Zahra. F.,and Islam.H., (2019).The Causal Relationship between Exports, Imports and Economic Growth in Palestine. Journal of Reviews on Global Economics, 2019, 8, 258-268
How to Cite
MOUSSAOUI, H. (2022). The impact of Exports and Imports on Economic Growth in Tanzania: The impact of Exports and Imports on Economic Growth in Tanzania. Asian Journal of Management, Entrepreneurship and Social Science, 2(04), 150-160.