THE EFFECTS OF TRADE ON EMPLOYMENT IN MANUFACTURING INDUSTRIES IN TANZANIA
Authors:
Mnongya, R.* & Kongolo, M. **
Abstract:
The main objective of this study was to examine the effects of trade on manufacturing employment in Tanzania. Secondary data used were obtained from different government agencies for a period of 2000 – 2012. Both qualitative and quantitative approaches were used to analyse the data. The OLS multiple regression model was used to monitor variable behaviors. The results suggested that estimated coefficient of variables Trade (TRADt), Manufacturing (MANt), Imports (MPIt) and Capital (KTLt) was positive and significant at the 1% and 5% respectively. While the coefficients of Employment and Exports (XMIt) were negative and not significant. The study concluded that a negative association existed between trade and exports intensity and employment level in the manufacturing industries. That is higher imports intensity leads to a decrease in employment level in manufacturing. It would be perhaps good to reduce import by increasing exports to accelerate the level of employment in the manufacturing sector. Exports show a significant negative effect on Tanzania’s manufacturing employment during the study period.