Patterns of Accumulation and Structural Change
This working paper explores past processes of economic transformation in Tanzania, particularly since the economic reforms of the 1980s. The paper starts with the premise that it is not sufficient to look at the evolution of the rate of economic growth to assess the macroeconomic performance of the economy, particularly when making inferences about its impact on poverty reduction. What matters as well is the analysis of the changing patterns of accumulation and structural change that accompanied this process of economic growth. The approach of this paper consists of looking at the data cautiously by triangulating different bits of macro data – taking account of the accounting frameworks within which they are constructed – in order to pinpoint the varied and sometimes contradictory stories they tell, leaving ample room (we hope) for ourselves and for the reader to ponder whether the patterns revealed in the data make reasonable sense in the light of our admittedly subjective hunches and qualitative feel of the Tanzanian economy in terms of both its history and its changing structure.
Since the introduction of the Skills Development Levy (SDL) in Tanzania, the financing of skills training has been contested. The private sector has raised concerns about the size of the levy and the usefulness of training provided by VET centres, and has accused the government of misallocation and misuse of the raised levy. Lack of […]
The gap between national export premium and foreign-ownership premium is stronger in manufacturing firms as opposed to service sectors. Moreover, we find clear and strong productivity premia in size, training programmes and level of development in the manufacturing firms. In the services sector, these premia are always smaller and only significant for medium-sized firms. There […]
The aim of this paper is twofold. Building on Andreoni (2018), we first aim to evaluate the current incentive structures that cause existing inefficiencies and encourage rule-breaking behaviour. Second, we seek to test empirically a number of institutional design strategies for the sector that would better align the incentives of private- and public-sector stakeholders and […]
Can Smallholders benefit from the new market opportunities from the extractive industry in Tanzania?
The recent discovery of huge oil and gas reserves in Tanzania has created a new opportunity for economic growth and development of the country. Tanzania is expected to be one of the leading producers and exporters of natural gas in the coming decade. However, 88 percent of poor Tanzanians live in rural areas and two-thirds […]