The Linkage Between Foreign Capital Inflows and Domestic Saving in Tanzania
This study examines whether money from outside the country (such as remittances, foreign direct investment, and foreign aid) adds to or replaces domestic savings in Tanzania. The research uses a 33-year time series dataset (1991-2023) and employs the Autoregressive Distributed Lag (ARDL) estimation...
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| Format: | Article |
| Language: | English |
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Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis Universitas Airlangga
2025-06-01
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| Series: | JDE (Journal of Developing Economies) |
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| Online Access: | https://e-journal.unair.ac.id/JDE/article/view/56297 |
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| author | Cornel Joseph |
| author_facet | Cornel Joseph |
| author_sort | Cornel Joseph |
| collection | DOAJ |
| description | This study examines whether money from outside the country (such as remittances, foreign direct investment, and foreign aid) adds to or replaces domestic savings in Tanzania. The research uses a 33-year time series dataset (1991-2023) and employs the Autoregressive Distributed Lag (ARDL) estimation approach. Findings show that, in the long run, remittances, foreign direct investment, and foreign aid have a negative and statistically significant effect on savings in Tanzania. This means that when Tanzania gets foreign aid, remittances, and investments from outside people will save less. However, the results depict that, in the short run, foreign direct investment and remittance inflows have a positive and statistically significant effect on savings in Tanzania. Therefore, the government of Tanzania needs to develop policies that ensure that, in the long run, foreign aid, foreign direct investment and remittance inflows contribute to savings rather than replace them. Specifically, the government needs to strengthen domestic capital formation rather than relying on foreign capital. This could strengthen domestic savings and lead to economic growth in Tanzania. |
| format | Article |
| id | doaj-art-9ae42999070d4bd2a16f9473d25b217f |
| institution | Kabale University |
| issn | 2541-1012 2528-2018 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis Universitas Airlangga |
| record_format | Article |
| series | JDE (Journal of Developing Economies) |
| spelling | doaj-art-9ae42999070d4bd2a16f9473d25b217f2025-08-20T03:30:03ZengDepartemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis Universitas AirlanggaJDE (Journal of Developing Economies)2541-10122528-20182025-06-01101264710.20473/jde.v10i1.5629754461The Linkage Between Foreign Capital Inflows and Domestic Saving in TanzaniaCornel Joseph0https://orcid.org/0000-0003-0761-0314Department of Geography and Economics, Mkwawa University College of Education, University of Dar es Salaam, Iringa, TanzaniaThis study examines whether money from outside the country (such as remittances, foreign direct investment, and foreign aid) adds to or replaces domestic savings in Tanzania. The research uses a 33-year time series dataset (1991-2023) and employs the Autoregressive Distributed Lag (ARDL) estimation approach. Findings show that, in the long run, remittances, foreign direct investment, and foreign aid have a negative and statistically significant effect on savings in Tanzania. This means that when Tanzania gets foreign aid, remittances, and investments from outside people will save less. However, the results depict that, in the short run, foreign direct investment and remittance inflows have a positive and statistically significant effect on savings in Tanzania. Therefore, the government of Tanzania needs to develop policies that ensure that, in the long run, foreign aid, foreign direct investment and remittance inflows contribute to savings rather than replace them. Specifically, the government needs to strengthen domestic capital formation rather than relying on foreign capital. This could strengthen domestic savings and lead to economic growth in Tanzania.https://e-journal.unair.ac.id/JDE/article/view/56297foreign capital inflowsardltanzania |
| spellingShingle | Cornel Joseph The Linkage Between Foreign Capital Inflows and Domestic Saving in Tanzania JDE (Journal of Developing Economies) foreign capital inflows ardl tanzania |
| title | The Linkage Between Foreign Capital Inflows and Domestic Saving in Tanzania |
| title_full | The Linkage Between Foreign Capital Inflows and Domestic Saving in Tanzania |
| title_fullStr | The Linkage Between Foreign Capital Inflows and Domestic Saving in Tanzania |
| title_full_unstemmed | The Linkage Between Foreign Capital Inflows and Domestic Saving in Tanzania |
| title_short | The Linkage Between Foreign Capital Inflows and Domestic Saving in Tanzania |
| title_sort | linkage between foreign capital inflows and domestic saving in tanzania |
| topic | foreign capital inflows ardl tanzania |
| url | https://e-journal.unair.ac.id/JDE/article/view/56297 |
| work_keys_str_mv | AT corneljoseph thelinkagebetweenforeigncapitalinflowsanddomesticsavingintanzania AT corneljoseph linkagebetweenforeigncapitalinflowsanddomesticsavingintanzania |