Examining the Impact of Exporting Wattle on the Economic

Abstract

iv 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