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Industrialisation for economic transformation : economy-wide impacts of agro-processing development in Tanzania
Thesis (MCom)--Stellenbosch University, 2020.
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| Format: | Thesis |
| Language: | en_ZA |
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Stellenbosch : Stellenbosch University
2020
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| _version_ | 1867613936948346880 |
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| access_status_str | Open Access |
| author | Mazungunye, Panashe Paul |
| author2 | Punt, Cecilia |
| author_browse | Mazungunye, Panashe Paul Punt, Cecilia |
| author_facet | Punt, Cecilia Mazungunye, Panashe Paul |
| author_sort | Mazungunye, Panashe Paul |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description | Thesis (MCom)--Stellenbosch University, 2020. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/108114 |
| institution | Stellenbosch University (South Africa) |
| language | en_ZA |
| last_indexed | 2026-06-10T12:44:04.029Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/108114 Industrialisation for economic transformation : economy-wide impacts of agro-processing development in Tanzania Mazungunye, Panashe Paul Punt, Cecilia Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Agricultural Economics. Transformation -- Tanzania Industrialization -- Economic aspects -- Tanzania Agricultural industries -- Tanzania Agricultural processing -- Tanzania UCTD Thesis (MCom)--Stellenbosch University, 2020. ENGLISH SUMMARY : Economic development has generally been viewed as a process of economic transformation. In countries where this economic transformation does not take place, socio-economic challenges prevail. Success in virtually all developed countries has been associated with diversification of the economy through industrialisation, particularly manufacturing expansion. In Tanzania, industrialisation and economic transformation are still to take place as they did not fare well in the past. Labour moving out of agriculture has mainly been absorbed in services and informal sectors that are not as highly productive as manufacturing. Agriculture still accounts for the majority of the economy’s employment and has a substantial share in output and exports. The contribution of manufacturing activities in the economy has remained limited. As a consequence, the current high economic growth rate has not been matched with quality jobs and rapid growth in incomes and thus poverty has remained high. The government has identified the need to transform the economy through expansion of agro-processing activities to create the much-needed jobs and incomes. The study reviewed that the prevailing conditions in the Tanzanian economy support the need for agro-processing activities. The activities have the potential to lead the process of economic transformation. A number of challenges, however, limit the expansion of the agro-processing in Tanzania and will need to be addressed through industrial policy. Against this background, the study examined the economy-wide impacts of agro-processing expansion in Tanzania. The investigation was done through simulating the impacts of policies aimed at improving productivity in agro-processing, expanding export markets for agro-processed products, increasing the quantity of educated labour, and increasing agricultural production to support the expansion of processing activities. The study used the International Food Policy Research Institute’s recursive dynamic computable general equilibrium model for the simulation analysis. The model which was calibrated to a 2016 Tanzania social accounting matrix was best suited for the analysis as it provided the impacts over a longer period of time. The findings suggest that agro-processing activities play an essential role in the Tanzanian economy and hence the government should continue to implement policies to encourage more investments in the sector. Productivity increases in the agro-processing sector are important for enhancing the sector’s production and competitiveness which leads to increased exports and import substitution of agro-processed products. Policies such as attracting FDIs to improve productivity should thus be encouraged. Export push strategies will boost exports but without improving the sector’s production capabilities, growth will slow down. On the other hand, horizontal policies such as increasing education may not necessarily be sufficient for the sector’s expansion but are crucial for the expansion of the whole economy. Productivity increases in agricultural activities will also be crucial to expand the input base for agro-processing activities. The simulation analysis also highlights that policy outcomes among the subsectors within the agro-processing sector may differ. Thus, policies must be targeted at the subsector level. In addition, it is also important to note that different policies that can expand the agro-processing sector have different implications on factor and household incomes. AFRIKAANSE OPSOMMING : Ekonomiese ontwikkeling word oor die algemeen gesien as 'n proses van ekonomiese transformasie. In lande waar hierdie ekonomiese transformasie nie plaasvind nie, heers sosio-ekonomiese uitdagings. Sukses in feitlik alle ontwikkelde lande hou verband met diversifisering van die ekonomie deur industrialisasie, veral die uitbreiding van vervaardiging. In Tanzanië moet industrialisasie en ekonomiese transformasie steeds plaasvind, aangesien dit nie in die verlede goed gevaar het nie. Arbeid wat uit die landbou beweeg, is hoofsaaklik opgeneem in dienste en informele sektore wat nie so produktief is soos vervaardiging nie. Die landbou is steeds verantwoordelik vir die meerderheid van die indiensneming van die ekonomie en het 'n aansienlike aandeel in produksie en uitvoer. Die bydrae van vervaardigingsaktiwiteite in die ekonomie het steeds beperk gebly. Gevolglik is die huidige hoë ekonomiese groeikoers nie gekoppel aan kwaliteitsgeleenthede en vinnige groei in inkomste nie, en armoede bly dus steeds hoog. Die regering het die behoefte geïdentifiseer om die ekonomie te transformeer deur die uitbreiding van landbouverwerkingsaktiwiteite om die broodnodige werkgeleenthede en -inkomste te skep. Die studie oorsig dui daarop dat die heersende toestande in die Tanzaniese ekonomie die behoefte aan agro-verwerkingsaktiwiteite ondersteun. Die aktiwiteite het die potensiaal om die proses van ekonomiese transformasie te lei. 'n Aantal uitdagings beperk egter die uitbreiding van die agro-verwerking in Tanzanië en moet deur die nywerheidsbeleid aangespreek word. Teen hierdie agtergrond is die gevolge van die uitbreiding van landbouprosessering in Tanzanië oor die hele ekonomie ondersoek. Die ondersoek is gedoen deur die impak van beleid te simuleer wat daarop gemik is om produktiwiteit in landbouverwerking te verbeter, die uitvoermarkte vir agro-verwerkte produkte uit te brei, die hoeveelheid opgeleide arbeid te vergroot, en landbouproduksie te verhoog om die uitbreiding van verwerkingsaktiwiteite te ondersteun. Die studie het die rekursiewe dinamiese berekenbare algemene ewewigsmodel van die International Food Policy Research Institute gebruik vir die simulasie-analise. Die model, wat gekalibreer is met 'n 2016 soisale rekeningkundige matriks vir Tanzanië, is die beste geskik vir die ontleding, aangesien dit die impakte oor 'n langer tydperk gee. Die bevindinge dui daarop dat landbouverwerkingsaktiwiteite 'n wesenlike rol in die Tanzaniese ekonomie speel, en daarom moet die regering voortgaan om beleid te implementeer om meer beleggings in die sektor aan te moedig. Toename in produktiwiteit in die agro-vervaardiging sektor is belangrik vir die verbetering van die sector se produksie en mededingendheid wat lei tot meer uitvoere en invoersubstitusie van verwekte landbou produkte. Beleid, soos om buitelandse beleggings te lok om produktiwiteit te verhoog, moet dus aangemoedig word. Strategieë wat uitvoere aanmoedig sal uitvoere 'n hupstoot gee, maar sonder om daarmee saam die produksievermoë van die sektor te verbeter, sal groei vertraag. Aan die ander kant is horisontale beleid soos die verhoging van onderwys moontlik nie noodwendig voldoende vir die uitbreiding van die sektor nie, maar dit is van uiterste belang vir die uitbreiding van die hele ekonomie. Produktiwiteitsverhogings in landboubedrywighede sal ook van kardinale belang wees om die insetbasis vir landbouverwerkingsaktiwiteite uit te brei. Die simulasie-analise beklemtoon ook dat die beleidsuitkomste vir die subsektore van die agro-verwerkingsektor kan verskil. Dus moet beleid op die subsektorvlak geteiken word. Daarbenewens is dit ook belangrik om daarop te let dat verskillende beleidsrigtings wat die agro-verwerkingsektor kan uitbrei, verskillende gevolge vir faktor- en huishoudelike inkomste het. Masters 2020-02-24T09:08:46Z 2020-04-28T12:20:00Z 2020-02-24T09:08:46Z 2020-04-28T12:20:00Z 2020-03 Thesis http://hdl.handle.net/10019.1/108114 en_ZA Stellenbosch University xi, 124 pages ; illustrations, includes annexure application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Transformation -- Tanzania Industrialization -- Economic aspects -- Tanzania Agricultural industries -- Tanzania Agricultural processing -- Tanzania UCTD Mazungunye, Panashe Paul Industrialisation for economic transformation : economy-wide impacts of agro-processing development in Tanzania |
| title | Industrialisation for economic transformation : economy-wide impacts of agro-processing development in Tanzania |
| title_full | Industrialisation for economic transformation : economy-wide impacts of agro-processing development in Tanzania |
| title_fullStr | Industrialisation for economic transformation : economy-wide impacts of agro-processing development in Tanzania |
| title_full_unstemmed | Industrialisation for economic transformation : economy-wide impacts of agro-processing development in Tanzania |
| title_short | Industrialisation for economic transformation : economy-wide impacts of agro-processing development in Tanzania |
| title_sort | industrialisation for economic transformation economy wide impacts of agro processing development in tanzania |
| topic | Transformation -- Tanzania Industrialization -- Economic aspects -- Tanzania Agricultural industries -- Tanzania Agricultural processing -- Tanzania UCTD |
| url | http://hdl.handle.net/10019.1/108114 |
| work_keys_str_mv | AT mazungunyepanashepaul industrialisationforeconomictransformationeconomywideimpactsofagroprocessingdevelopmentintanzania |