The Impact of Inflation on Economic Growth in Tanzania, (A Time-Series Study for the Period of 1980–2010)

14 Pages Posted: 4 Sep 2021

See all articles by Richard Ssempala

Richard Ssempala

Makerere School of Public Health

Allen Semboze

The Semboze Group

Date Written: July 13, 2017

Abstract

The question of Inflation remains one of the critical issues for most countries, especially in their macroeconomic policies. Tanzania, for long, has guided its macroeconomic policies towards having a low inflation level that would promote economic growth. However, there has been substantial debate on whether Inflation promotes or harms economic growth. Motivated by this controversy, this study examined the impact of Inflation on economic growth using Time-series data from 1980 -2010.

The study applied an ordinary least regression analysis to establish the impact of Inflation on economic growth on time series data from 1980 to 2010. The study revealed a negative relationship between Inflation and Economic growth. Thus, the study recommended for policies aimed at maintaining the inflation figure at a single-digit figure if economic growth is to be realized in Tanzania.

Keywords: Inflation, muliticollinerity, Tanzania

Suggested Citation

Ssempala, Richard and Semboze, Allen, The Impact of Inflation on Economic Growth in Tanzania, (A Time-Series Study for the Period of 1980–2010) (July 13, 2017). Available at SSRN: https://ssrn.com/abstract=3892052 or http://dx.doi.org/10.2139/ssrn.3892052

Richard Ssempala (Contact Author)

Makerere School of Public Health ( email )

New Mulago Hospital Complex
Kampala, 7072
Uganda
+256700274764 (Phone)

Allen Semboze

The Semboze Group ( email )

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