Abstract:
This paper aimed to investigate the impact of economic growth on the share price in Tanzania, the case of
Tanzania Breweries Limited. The study used time series data from 1999 to 2020. The study used secondary data
on economic growth and share price. The Granger causality test was conducted to establish the causal
relationship between the variables, while the Johansen test was conducted to establish cointegration. The
empirical tests results show a bidirectional causality between economic growth (GDP) and the share price of
Tanzania Breweries. The analysis also brought to light that there is a positive relationship between the variables,
but this effect would be evident in the long term in the economy of Tanzania. The study further recommends that
the government and policymakers ensure that bottlenecks that restrict or slow down development in some of the
dimensions of the stock market are improved.
