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Determinants of clove exports in Zanzibar: Implications for policy

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  • Samwel J. Kabote
  • Jires Tunguhole

Abstract

This paper analyses factors for the declining trend in clove exports in Zanzibar using time series data that were collected between 1980 and 2020 and analysed using the vector error correction model, complemented with qualitative analysis. Clove production, producer price, world price, gross domestic product, and the exchange rate showed positive statistically significant impacts in the long run at the one per cent level, while foreign direct investment, population growth rate, rainfall, and gross capital formation showed significant negative association. Inflation had no impact.

Suggested Citation

  • Samwel J. Kabote & Jires Tunguhole, 2022. "Determinants of clove exports in Zanzibar: Implications for policy," WIDER Working Paper Series wp-2022-54, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2022-54
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2022-54-determinants-clove-exports-Zanzibar-implications-policy.pdf
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    References listed on IDEAS

    as
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    7. Menji, Sisay, 2010. "Export Performance and Determinants in Ethiopia," MPRA Paper 29427, University Library of Munich, Germany.
    8. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
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    Keywords

    Exports; Vector error correction; Zanzibar;
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