Effect of trade liberalization on manufacturing output in Tanzania

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This book examines the effect of capacity utilization and trade openness on manufacturing output growth in Tanzania.

To assess this purpose, the study uses the more recent data analysis technique the Engle-Granger co-integration approach and error correction model.

The data span for the study is from 1980 to 2014.

Amongst the key results it is found: a long run relationship between capacity utilization, trade openness and manufacturing output growth.

Dickey-Fuller unit root test was used to check for stationarity between variables.

Labor force had significant negative effect on manufacturing output growth in Tanzania while both capacity utilization and trade openness were positively significant in explaining manufacturing output growth in Tanzania.

Therefore this study concludes by recommending, among other things, Tanzania by improving and increasing size of skilled labors, manufacture output growth would grow at higher rate.

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