Abstract:
International trade is considered among the leading debates taken not only in developing
countries but worldwide as well. Empirical investigation on the linkage between economic growth
and export performance is considered important. The study aims to determine the relationship
between export and import on economic growth of Tanzania. Data used in analysis was covering
the period 1992-2017. The study applied Ordinary Least Square (OLS) multiple regression
analysis, to investigate the relationship among variables. The study findings signify a positive
and significant relationship between export and economic growth in Tanzania. Whereas negative
and significant relationship was observed between import and economic growth in a country. The
study therefore recommended that; government should enhance international trade by
increasing export through enhancing environment for trade promotion in addition to increasing
participation of Tanzania to the global market. Particularly, government should improve the
production of more exportable commodities by allowing tax incentives to producers and assisting
them with subsidies wherever necessary. Furthermore, export tariffs should be lowered to
increase so as to encourage more export since it is considered to be the source of foreign
earnings and therefore adds to the growth of the national economy
