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Author
Utouh Harold (Mzumbe University, Morogoro, Tanzania), Tile Augustino (Mzumbe University, Morogoro, Tanzania)
Title
The Nexus between Foreign Direct Investment and Nominal Exchange Rate, Real GDP, and Capital Stock In Tanzania
Związek między bezpośrednimi inwestycjami zagranicznymi a nominalnym kursem walutowym, realnym PKB i zasobem kapitału w Tanzanii
Source
Acta Scientiarum Polonorum. Oeconomia, 2023, R. 22, nr 1, s. 73-87, rys., tab., bibliogr. 39 poz.
Keyword
Inwestycje zagraniczne, Produkt krajowy brutto (PKB), Kurs walutowy
Foreign investment, Gross domestic product (GDP), Exchange rates
Note
JEL Classification: B42, C22, C32, F43
streszcz., summ.
Abstract
Cel: Celem artykułu jest zbadanie relacji między BIZ a nominalnym kursem walutowym, realnym PKB i zasobem kapitału w Tanzanii za pomocą ilościowych metod badawczych i analizy ekonometrycznej. Celem analizy jest dostarczenie wglądu w czynniki, które wpływają na BIZ oraz wniesienie wkładu do istniejącej literatury na temat związku między BIZ a wzrostem gospodarczym.
Metody: Poddano analizie związek między napływem BIZ, realnym PKB, zasobem kapitału i normalnym kursem walutowym w Tanzanii przy użyciu solidnej metodologii badawczej. W badaniu wykorzystano oprogramowanie STATA 15 i kryteria informacyjne Akaike (AIC), kryteria informacyjne Schwarz (SC), błąd ostatecznej prognozy (FPE) i kryteria informacyjne Hannan Quinn (HQ). Ponadto do określenia optymalnego opóźnienia zastosowano model autoregresji, test kointegracji Johansena i test przyczynowości Toda-Yamamoto (zmodyfikowany WALD).
Wyniki: Wskazano, że istnieje dwukierunkowa zależność między nominalnym kursem walutowym a BIZ w Tanzanii, tj. czym napływ BIZ wpływa na zmienność Nominalnego Kursu Walutowego, a Nominalny Kurs Walutowy Wpływa na napływ BIZ. Ponadto wyniki wskazują, że realny PKB, zasób kapitału i Nominalny Kurs Walutowy wywierają jednokierunkowy wpływ na napływ BIZ do Tanzanii.
Wnioski: Nominalny kurs walutowy i zasób kapitału mają zarówno dodatnie, jak i ujemne korelacje z bezpośrednimi inwestycjami zagranicznymi. Tanzania, podobnie jak wiele innych gospodarek afrykańskich, pozostaje podatna na siły zewnętrzne, mimo znacznych postępów w dążeniu do stabilizacji kursu walutowego. Zaleca się, aby Bank Centralny Tanzanii wraz z bankami innych krajów afrykańskich o podobnej strukturze gospodarczej utrzymywał stabilny nominalny poziom kursu walutowego jako zachętę dla inwestorów zagranicznych do zwiększenia napływu bezpośrednich inwestycji zagranicznych. (abstrakt oryginalny)

Aim: The paper aims to examine the relationship between FDI and the nominal exchange rate, real GDP, and capital stock in Tanzania using quantitative research methods and an econometric analysis. The analysis aims to provide insights into the factors that affect FDI and contribute to the existing literature on the relationship between FDI and economic growth.
Methods: This study examines the relationship between FDI inflow, real GDP, capital stock, and the normal exchange rate in Tanzania using a robust research methodology. The study employs STATA 15 software and Akaike's Information Criteria (AIC), Schwarz Information Criteria (SC), Final Prediction Error (FPE), and the Hannan Quinn (HQ) Information Criteria. In addition, the autoregressive model, the Johansen cointegration test, and the Toda-Yamamoto Granger causality (modified WALD) test were employed to determine the optimal lag.
Results: The results indicate a bidirectional relationship between the nominal exchange rate and FDI in Tanzania, with FDI inflows influencing the nominal exchange rate volatility and vice versa. Furthermore, the results indicate that real GDP, capital stock, and the nominal exchange rate exert a unidirectional influence on FDI influx in Tanzania.
Conclusions: The nominal exchange rate and capital stock have positive and negative correlations with foreign direct investment. Like many other African economies, Tanzania remains vulnerable to external forces despite making significant strides in stabilizing the exchange rate. It is recommended that the Central Bank of Tanzania - along with those of other African nations with similar economic structures - maintain a stable nominal exchange rate level as an incentive for foreign investors in order to increase the inflow of foreign direct investment. (original abstract)
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ISSN
1644-0757
Language
eng
URI / DOI
http://dx.doi.org/10.22630/ASPE.2023.22.1.7
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