Impact of Agricultural Irrigated Land on Agriculture Value Added in Tanzania

Abstract

This dissertation aimed to assess the Impact of Agricultural Irrigated Land on Agriculture Value Added in Tanzania, specifically to examine whether agricultural irrigated land (% of total agricultural land) granger causes (precedence) agriculture value added in Tanzania, then to assess whether agriculture value added granger cause agricultural irrigated land (% of total agriculture land) in Tanzania. But it also evaluates the cointegration between agricultural irrigated land (% of total agriculture land) granger cause agriculture value added in Tanzania and lastly to, create a model for sustainable utilisation of agricultural irrigated land (% of total agriculture land) on agriculture value added in Tanzania. The theory guiding this study was Production Function Theory which suggests that the output or value-added generated by a production process depends on the inputs used, including both capital and labor. This dissertation opts to adopt a causal research design that enabled the researcher to test the hypothesis between variables to determine the causal and effective relationship that exists between studied variables. Using this design, the secondary data was analysed from 2000-2022 both descriptive and granger causality with the help of STATA software and Excel. The results show that there is no significant long-run relationship between the two variables, and they do not move together in the long run. The Granger causality test results indicate that the expansion of irrigated land may not directly influence Agriculture Value Added, while changes in Agriculture Value Added may not significantly affect the availability or expansion of irrigated land. Policymakers should focus on other factors such as water resource management, infrastructure development, and targeted agricultural policies to promote agricultural development and enhance productivity in Tanzania