Analysis of the Influence of Industrial Policies to the Economic Development: Evidence from Tanzania

Literature manifest that Tanzania industrial policies were not satisfactorily executed to realize the intended goals for economic development. With that regard the interrogation of the influence of industrial policies to economic development in Tanzania become the discourse. The contemporary study is undertaken to analyze the influence of industrial policies to economic development during the period from 1996 to 2015 in Tanzania. A Simple Regression model is employed to appraise the influence of industrial policies to economic development during the period from 1996 to 2015 in Tanzania. Facts of the study were gathered from the World Bank and Tanzania National Bureau of Statistics for the period from 1996 to 2015. To probe the influence of industrial policies to economic development during the period from 1996 to 2015 in Tanzania, Industrial policies were represented by the economic openness as Independent variable and other macroeconomic variables (industrial registration, Gross Domestic Product (GDP), employment, investment, import, export and revenue) as the dependent variables of the study. The information discovered from the probe were in actual fact absorbing. Findings of the study reveal that the correlation between economic openness and all macroeconomic variables (industrial registration, Gross Domestic Product (GDP), investment, import, export and revenue) is positive and meaningful Except to Employment. The correlation between economic openness and employment is negative and meaningless. The meaning is industrial policies had significant influence to all macroeconomic variables (industrial registration, Gross Domestic Product (GDP), investment, import, export and revenue) except Employment during the period from 1996 to 2015 in Tanzania.