Abstract:
This research delved into examining the causal relationship between accessibility to improved
water sources and household income in Tanzania, with a focus on the Msalala District Council
in the Shinyanga Region. Specifically, the study examined whether access to improved water
sources Granger causes household income in Tanzania. Furthermore, it explored the reciprocal
relationship by assessing whether household income Granger causes access to improved water
sources in the Tanzanian context. Additionally, the study scrutinized the presence of co-
integration between access to improved water sources and household income in Tanzania. The
theoretical frameworks of Human Capital Theory, Resource-Based Theory, and Capability
Approach guided this investigation. The descriptive analysis of the data revealed that Household
Water Connection in Msalala District Council showed a mean value of approximately 83.83,
indicating a certain level of access to improved water sources. However, notable variability (with
a variance of 6,943.968) and a slight right-skewness were observed, suggesting varying levels
of water connection and the existence of outliers. In terms of Household Income in the study
area, the figure was approximately TZS 990,215.20, showcasing significant income disparities
(evidenced by high variance) and a slightly right-skewed distribution with indications of outliers.
Unit root tests confirmed the stationary nature of both variables. The regression model findings
illustrated that Household Water Connection elucidates 83.48% of the variance in Household
Income. This relationship exhibited positivity, with a one-unit increase in Household Water
Connection correlating with a 3.15-unit increase in Household Income. The Johansen test
outcomes indicated cointegration, suggesting a sustained relationship between the variables
over the long term. Furthermore, Granger causality tests established a directional causal link
from Household Water Connection to Household Income. Diagnostic tests validated the model's
integrity and dependability, collectively implying that Household Water Connection significantly
influences Household Income in the studied region. Continuing with the analysis, these findings
carry significant implications for both theoretical understanding and practical applications. The
presence of a Granger-causal relationship from Household Water Connection to Household
Income suggests that interventions and policies aimed at improving access to clean water
sources can be strategic in fostering economic growth in the Msalala District Council and, by
extension, in the broader Tanzanian context.
