Trade facilitation, ICT and manufactured export performance in Tanzania : what is the missing link?; National Workshop, Micro-Level Perspectives of Growth in Tanzania, 3rd December 2008, Dar es Salaam, TZ

Date

2008

Journal Title

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Volume Title

Publisher

Dept. of Economics, University of Dar es Salaam, Dar es Salaam, TZ

Abstract

This study focuses on testing the hypothesis that application of ICT at firm level and trade facilitation policies has a causal impact on the quality and quantity of manufactured exports, productivity and investment. The study findings based on production function estimates show a strong positive correlation between unobserved time invariant firm characteristics with the level of application of ICT, exports and productivity performance. The estimates based on GMM confirm a positive correlation between firm productivity and ICT, trade facilitation and exports. However, control for firm fixed effects results suggest a strong positive correlation between unobserved firm fixed effects and both ICT and trade facilitation. Further findings of the study are that, trade facilitation policies measured by government policies on prices, facilities on access to imported raw materials, preferential trade access and overall trade policy changes have significant influences on firm level performance on exports and productivity. Therefore, the potential missing links for the workability of trade facilitation and productivity are access to credit, skilled labour, demand deficiency and trade policy certainty. To halt stagnation of Tanzania manufacturing export and growth, via trade facilitation such firm level factors must be addressed.

Description

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Keywords

PRIVATE ENTERPRISES, INFORMATION TECHNOLOGY, INDUSTRIAL PRODUCTIVITY, COMPETITIVENESS, TRADE POLICY, TRADE FACILITATION, EXPORT PROMOTION, TANZANIA

Citation

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