This stage investigates the causal relationship betwixt foreign direct investment (FDI) inflows and financial growth in Tanzania during 1990–2020. Because financial development and business were not included in extant studies, we received the two variables as intermediate variables by way of their intermediation role in the relationship 'tween inward FDI and economic growth. We acquired yearly data on Tanzania’s GDP, FD, work (TRD), and net FDI during 1990–2020 from World Bank Group and OECD Ethnic Accounts data files. Neoclassical progress theories claim that FDI enhances financial growth by augmenting authorized capital stock and technology. This study employed the autoregressive delivered lag model and Granger origin tests to analyze the relationship. The results display that there exists a long-run friendship among the variables under consideration in Tanzania. Furthermore, the results show a long- and short-term positive and statistically meaningful unidirectional causal relationship middle from two points FDI inflow and Tanzania's economic progress. Hence, this chapter decided that Tanzania should emphasize FDI-led development policies while strengthening allure internal conditions, to a degree financial and human capital development, to improve economic growth and accomplish the desired economic goals. Moreover, future research should contain other pertinent variables in a scheme of equations where additional economic variables can also decide the nexus between FDI inflows and business-related growth.
Author(s) Details:
Benedict Huruma Peter Mwakabungu,
Department
of Economics, Gujarat University, India.
Jignesh
Kauangal,
Shree
Narayana College of Commerce, Ahmedabad, India.
Please see the link here: https://stm.bookpi.org/AOBMER-V6/article/view/12796
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