Abstract:
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ABSTRACT
The purpose of this study was to examine the impact of exporting Wattle on the economic growth
of Tanzania. The specific objectives of this study were to determine the effects of the exchange rate
on economic growth in Tanzania, to examine the effects of the inflation rate on economic growth in
Tanzania, and to investigate the influence of trade openness on economic growth in Tanzania. The
study adopted a causal research design with a quantitative research approach. Secondary data for
the years 2012 to 2022 were selected using purposive sampling techniques. Also the data was
analyzed using descriptive analysis, correlations and multiple linear regression analysis, mean
value, maximum value, minimum value and standard deviation was also used to analyze the general
trends of data. The Ordinary Least Squares regression (OLS) was conducted, and the residuals
were found to be free of multicollinearity, free of autocorrelation, and normally distributed. The
regression results revealed that the exchange rate and trade openness have a positive but
statistically insignificant influence on economic growth, while the inflation rate has a negative and
statistically significant influence on economic growth. These findings have significant policy
implications for both domestic policymakers and development partners, emphasizing that managing
inflation is a prerequisite for boosting economic growth. As a result, policymakers should focus on
keeping inflation low because higher rates of inflation are detrimental to the economy.
Keywords: Export, Wattle, Economic Growth, Tanzani
