Assessing the Effects of Manufacturing Sector on Economic Growth in Tanzania

Abstract

v ABSTRACT This study assessed the effects of manufacturing sector on economic growth in Tanzania: A case of Mbeya region. The specific objectives of the study are: to examine the trends and patterns of the manufacturing sector in Tanzania, to analyze the relationship between the manufacturing sector and economic growth in Tanzania and to investigate the effects of international trade on the economic growth in Tanzania. The researcher used a descriptive research design for this study. Quantitative research approach was adopted, specifically, a time-series analysis of secondary data. In this research, both descriptive and inferential statistics were used in the data analysis process. Descriptive statistics such as mean, standard deviation, frequency distribution, and percentage were used to describe the characteristics of the data collected. Inferential statistics such as regression analysis were used to analyze the relationship between the manufacturing sector and economic growth in Tanzania. The findings of the study revealed that the manufacturing sector in Tanzania has witnessed significant growth, marked by the expansion of firms and product diversification. This growth is attributed to investments in technology, infrastructure, and human capital. The study establishes a positive correlation between the manufacturing sector's contribution to GDP and overall economic growth, emphasizing the sector's role in driving innovation, job creation, and increased productivity. Moreover, the research underscores the substantial positive impact of international trade on economic growth in Tanzania. Increased trade, both in terms of exports and imports, is associated with higher economic growth, aligning with the role of trade in facilitating technological progress and knowledge exchange. The study provides practical recommendations for policymakers, advocating for continued support of the manufacturing sector, open trade policies, investments in human capital, and a focus on regional disparities for more inclusive economic growth