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Determinants of Leather and Leather products Exports in Tanzania

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  • Francis Lwesya

Abstract

This study examines the determinants of Leather and Leather products Exports in Tanzania. We apply Ordinary Least Square (OLS) analysis on time series data from 1980 to 2015. The findings show that export of raw hides and skins, and high costs of production are among the deterring factors to leather and leather products export in Tanzania. Export of raw hides and skins and costs of production recorded negative and significant relationship with leather exports. On the other hand, hides and skins collection recorded insignificant relationship while leather price in the world market had negative and significant relationship with leather exports. This suggests that other factors such as low quality of leather and leather products exported, inadequate capital investment, stiff competition with foreign companies for hides and skins and inadequate market information explain the state of current Tanzania’s leather exports. Thus, attracting local and Foreign Direct Investment (FDI) in the leather subsector by providing friendly investment climate and addressing the supply side constraints will enable increased high quality leather and leather products diversification and exports.

Suggested Citation

  • Francis Lwesya, 2018. "Determinants of Leather and Leather products Exports in Tanzania," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 133-140, March.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:1:p:133-140
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    References listed on IDEAS

    as
    1. Jabbar, Mohammad A. & Kiruthu, S & Gebremedhin, Behanu & Ehui, Simeon K., 2002. "ESSENTIAL ACTIONS TO MEET QUALITY REQUIREMENTS OF HIDES, SKINS AND SEMI-PROCESSED LEATHER From AFRICA," Research Reports 182887, International Livestock Research Institute.
    2. Lawrence Edwards & Robert Lawrence, 2006. "South African Trade Policy Matters: Trade Performance & Trade Policy," Growth Lab Working Papers 14m, Harvard's Growth Lab.
    3. Lawrence Edwards & Robert Lawrence, 2008. "South African trade policy matters Trade performance and trade policy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(4), pages 585-608, October.
    4. Marco Fugazza, 2004. "Export Performance And Its Determinants: Supply And Demand Constraints," UNCTAD Blue Series Papers 26, United Nations Conference on Trade and Development.
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    More about this item

    Keywords

    Leather exports; leather products; skin and hides; OSL;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F10 - International Economics - - Trade - - - General
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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