Journal of Economic Research & Reviews(JERR)

2Senior Lecturer in Economics and Head of Department of Economics at St Augustine, University of Tanzania, Tanzania

Publications

• Review Article   
  Does Debt Hamper Economic Growth? A Time Series Analysis for Tanzania (1990 – 2023)
  Author(s): Mariam Baus Abubakar* and Fulgence Dominic Warioba
  
  This study investigated relationship between debt and economic growth in Tanzania, with a specific focus on whether debt hampers the country’s long run economic growth. Using annual time series data from 1992 to 2023. Analysis employs Johansen Cointergration test and Vector Error Correction Model (VECM) to explore both short run and long run dynamics between GDP and macroeconomic variables including debt, (FDI), inflation, exchange rate and institutional quality. Empirical results reveal existence of long run equilibrium relationship among variables. Specifically, debt is found to have a statistically significant negative effect on GDP in long run, supporting debt overhang theory, which suggests that excessive debt discourages investment and impedes growth. In short run, however, effect of external debt on economic growth is statistically insignificant likely due to implementati.. Read More»
  

  Abstract HTML PDF