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Linkages among real exchange rate, net exports, government expenditure, money supply, inflation rate, and economic growth in Tanzania

Author

Listed:
  • Harold M.L Utouh

    (Department of Economics, Mzumbe University, Morogoro, United Republic of Tanzania)

  • Henry M. Chikongoye

    (Department of Economics, Mzumbe University, Morogoro, United Republic of Tanzania)

Abstract

The research delves into the interconnectedness of various macroeconomic factors, including Real Exchange Rate, Net Exports, Government Expenditure, Money Supply, Inflation Rate, and economic growth in Tanzania. Employing a vector autoregression model, the analysis spans from 1992 to 2021. The results uncover noteworthy correlations between these indicators and economic growth. Specifically, the study identifies a positive relationship between inflation rate and economic growth (p = 0.006), suggesting that a 1% rise in inflation leads to a 0.16% decrease in real GDP. Furthermore, fluctuations in money supply, real exchange rate, net exports, and government expenditure significantly impact economic growth (p

Suggested Citation

  • Harold M.L Utouh & Henry M. Chikongoye, 2026. "Linkages among real exchange rate, net exports, government expenditure, money supply, inflation rate, and economic growth in Tanzania," Romanian Journal of Economics, Institute of National Economy, vol. 62(1(71)), pages 45-69, June.
    • Handle: RePEc:ine:journl:v:62:y:2026:i:71:p:45-69
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    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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