ECONOMIC GROWTH BEYOND STRUCTURAL TRANSFORMATION IN TANZANIA- SMALL AND VULNERABLE ECONOMY

Abstract

War against three development archenemies (ignorance, poverty and disease) started in 1961. Since then enormous efforts have been underway in different phases with different objectives. Recently, Tanzania Development Vision (TDV-2025) set the goal of transforming the nation in to semi-industrial or middle income nation. This paper investigates economic growth beyond structure changes to analyse nexus between structure transformation and productive sector during growth process. The study found that despite of up-haphazard structure changes there is direct connection between structure changes and economic growth. Statistics shows that 1% change in the primary, secondary, high school, vocational/college and university create a change of 33.5%, 1.9%, 27.1%, 0.1% and 23.9% to the employment respectively. Similarly, 1% change in employment in agriculture, industry and service sector create change of 9.8%, 0.06% and 2.5% to the GDP respectively. Therefore, education is the determinant of changes in the employment while employment determines changes in the GDP.

Keywords: GDP, Inclusive Growth, Structure Transformation, Tanzania


Article Review Status: Published

Pages: 1-23 (Download PDF)

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