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Determinants of Private Investment in Tanzania

Author

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  • Michael, Innocent M.
  • Aikaeli, Jehovaness

Abstract

This article investigates the determinants of private investment in Tanzania using Error Correction Model and employing time series data for the period 1975 – 2010. The results show that public investment, GDP growth and credit to private sector are important in explaining growth of private investment but there is no enough evidence that interest rate, exchange rate and degree of openness of the economy have influence on growth of private investment. Policy implications on both fiscal and monetary sides are presented in line with the findings of this article.

Suggested Citation

  • Michael, Innocent M. & Aikaeli, Jehovaness, 2014. "Determinants of Private Investment in Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 2(2), July.
  • Handle: RePEc:ags:afjecr:264362
    DOI: 10.22004/ag.econ.264362
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    Cited by:

    1. Thomas Galih Pramudita & Setyabudi Indartono & Maimun Sholeh, 2019. "The Antecedent of Domestic Investment in Indonesia: Auto Regressive Distributed Lag Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 138-144.

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    Keywords

    Financial Economics;

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