Inflation And Economic Growth in Tanzania ( 1992-2012)
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Date
2013-06
Authors
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Journal ISSN
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Publisher
Kampala International University, bachelors degree in Economics And Applied Statistics
Abstract
This research report set out to investigate the relationship between inflation rate and economic
growth rate(% annual GDP) in Tanzania (1992-2012), the study employed time series survey
data since examined data for a short time ,its objectives were; to establish the trend of import in
Tanzania (1992-2012), to establish the trend of GDP growth of Tanzania (1992-2012), to
investigate the relationship between Inflation rate and GDP growth rate in Tanzania ( 1992-
2012), the hypothesis of the study was there is no significant relationship between inflation rate
and GDP growth rate in Tanzania time series analysis such Correlation analysis. repression
analysis mechanisms were used. The trend of inflation rate has shown a general decrease over
the period under study and GDP growth rate has shown a general increase for the period under
study. Using the correlation, regression approach, there was a strong negative correlation
between inflation rate and GDP growth(r=-0.805 ),there was a relationship between inflation
rate and GDP growth at 0.05 level of significance, stationary was tested and found that both
inflation rate and GDP has trend by using ACF and PACF. There is relationship between
Inflation Rate and growth Rate in Tanzania which agreed with Khan ( I 98() ). Tobi ( I 98:i 1. Coo le>
(1988) study on inflation rate and GDP growth rate. The study has ,i\s,1 supported the theory of
aggregate demand stated by Keynes (1883-1946) which state that there is a negative relationship
between Inflation and Economic growth.
Description
A Research Report Submitted To The College Of Economics And Management Science In Partial Fulfillment Of The Award Of A Bachelor's Degree In Economics And Applied Statistics Of Kampala International University
Keywords
Inflation And Economic Growth, Tanzania