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The Impact of Foreign Direct Investment on Agricultural Productivity and Poverty Reduction in Tanzania

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  • Msuya, Elibariki

Abstract

In this paper, the impact of Foreign Direct Investment (FDI) on agricultural productivity and poverty reduction are examined. Factors that hinder FDI flow to agriculture in Tanzania are assessed. Specifically, the role of FDI in improving an agricultural firm’s efficiency in Tanzania and reforms required for more effective investment promotion in agriculture are examined. The study uses literature review to draw its conclusions and policy recommendations. It is observed that FDI has a positive impact on productivity especially to smallholder farmers who are linked in integrated producer schemes. The study recommends rethinking of the smallholder institutional setup for increasing productivity and FDI flow to the agricultural sector. An important implication of the results is that FDI to Tanzania and specifically to agriculture, has a much more far- reaching economic and social impact than in other sectors.

Suggested Citation

  • Msuya, Elibariki, 2007. "The Impact of Foreign Direct Investment on Agricultural Productivity and Poverty Reduction in Tanzania," MPRA Paper 3671, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:3671
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    File URL: https://mpra.ub.uni-muenchen.de/3671/1/MPRA_paper_3671.pdf
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    References listed on IDEAS

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    1. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
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    Cited by:

    1. Serfraz, Ayesha, 2017. "Foreign direct investment inflows and labor productivity in Pakistan: A sector-wise panel cointegration analysis," ZÖSS-Discussion Papers 65, University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS).
    2. Viliam Pajtinka, 2012. "Teoretické východiská koncepcie zlyhávajúcich štátov," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 72-86.
    3. Anayochukwu Basil Chukwu & Adeolu O. Adewuyi & Adebowale M. Adeleke & Banji B. Awodumi & Tobechi F. Agbanike, 2022. "Modelling composition of growth, FDI and welfare in Africa: a SEM approach," Economic Change and Restructuring, Springer, vol. 55(4), pages 2445-2478, November.
    4. Martin Grančay, 2012. "Recenzia - Paul Krugman, Maurice Obstfeld a Marc Melitz - International economics, theory and policy (9. vydanie)," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 147-148.
    5. Zaid Ashiq Khan & Mansoor Ahmed Koondhar & Noshaba Aziz & Uzair Ali & Liu Tianjun, 2020. "Revisiting the effects of relevant factors on Pakistan's agricultural products export," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(12), pages 527-541.
    6. Udemba, Edmund Ntom & Yalçıntaş, Selin, 2022. "Unveiling the symptoms of Dutch disease: A comparative and sustainable analysis of two oil-rich countries," Resources Policy, Elsevier, vol. 79(C).
    7. Viera Čihovská & Veronika Nekolová, 2012. "Možnosti a bariéry vstupu malých a stredných podnikov SR na jednotný trh EÚ - výsledky marketingového prieskumu," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 45-57.
    8. Miriama Vašková, 2012. "Koncentrácia priamych zahraničných investícií a s tým súvisiace efekty v najmenej rozvinutých krajinách sveta," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 105-118.
    9. Bakari, Sayef & El Weriemmi, Malek, 2022. "Exploring the Impact of Agricultural Investment on Economic Growth in France," MPRA Paper 113970, University Library of Munich, Germany.
    10. Fredrick Ikpesu & Abraham Emmanuel Okpe, 2019. "Capital inflows, exchange rate and agricultural output in Nigeria," Future Business Journal, Springer, vol. 5(1), pages 1-8, December.
    11. Rudolf Kucharčík, 2012. "Recenzia - František Škvrnda - Teória svetovej politiky," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 145-146.
    12. Monika Mrlinová, 2012. "Metodologie mezinárodních statistik obchodu se službami," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 87-104.
    13. Marián Šabo, 2012. "Postavenie Brazílie v Latinskej Amerike na začiatku 21. storočia," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 131-144.
    14. Tomáš Dudáš, 2012. "Vývoj konkurencieschopnosti štátov Vyšehradskej skupiny v rokoch 2001-2011 vo svetle medzinárodných indexov konkurencieschopnosti," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 58-71.
    15. Peter Rusiňák, 2012. "Imidž Slovenskej republiky v činnosti orgánov pre zahraničné styky," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 7-28.
    16. Martina Jiránková, 2012. "The analysis of the US income differential development in a context of its hegemonic position," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 29-44.
    17. Rashid, Furaha N. & Mwenda, Beny B. & Tengaa, Peter E., 2023. "Bridging Borders, Nourishing Nations: The Impact of Foreign Direct Investment on Tanzania's Cereal Yield," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 11(4), October.
    18. Dadson Awunyo-Vitor & Ruby Adjoa Sackey, 2018. "Agricultural sector foreign direct investment and economic growth in Ghana," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-15, December.
    19. Peter Rusiňák, 2012. "Spomienka na Juraja Králika - Za potulným rytierom nádeje," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 149-150.
    20. Stanislav Mráz, 2012. "45. výročie Zmluvy o zásadách činnosti štátov pri výskume a využívaní kozmického priestoru vrátane Mesiaca a iných nebeských telies," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 119-130.

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    More about this item

    Keywords

    FDI; Smallholders; Integrated Producer Schemes; Agricultural Productivity; Poverty Reduction; Tanzania;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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