NG Journal of Social Development

Exploring the relationship between government tax revenue and economic growth in Tanzania from 1996 to 2024

Laurent Mpfubhusa — 2025-01-15

This study explores the relationship between
gross domestic product (GDP) and key tax
revenue components in Tanzania, focusing on
their impact on economic performance. Utilizing
the ARMA model, the research highlights how
GDP is influenced by its own past values and
various tax sources, including domestic valueadded tax (VAT), VAT on imports, and domestic
excise duty. The results revealed that these
consumption-based taxes significantly contribute
to GDP growth, underscoring their vital role in
driving economic performance. In contrast, PayAs-You-Earn (PAYE) and excise duties on imports
show limited or insignificant effects, suggesting
that direct and trade-related taxes have a less
pronounced impact. The study’s approach
effectively captures the interactions between tax
revenue and economic growth, providing
valuable insights into their contributions. Key
findings showed the importance of strengthening
tax compliance systems and enhancing domestic
production to maximize the benefits of VAT and
excise duties. The study advocates for policies
that broaden the tax base, improve trade
facilitation, and modernize tax administration to
support sustainable economic growth.
Additionally, it underscores the necessity of
adapting fiscal policies to evolving economic
conditions, contributing to the discourse on
effective tax policy and economic development in
Tanzania.

Impact of Exchange Rate Volatility on Selected Macroeconomic Variables in Nigeria

Nwangene Emezie — 2025-02-25

Examining the combined impact of exchange rate
volatility on economic growth, inflation, and
unemployment provides a more comprehensive
understanding of their interconnections and overall effects
on an economy. Specifically, this study examined the effect
of exchange rate volatility on economic growth, to
appraise the effect of exchange rate volatility on inflation,
and to assess the influence of exchange rate volatility on
unemployment rate in Nigeria from 1981 to 2021. The
study employed Feasible Generalized Least Square
(FGLS) method as the analytical technique. The findings
of this study revealed that exchange rate volatility has a
significant negative impact on economic growth,
indicating that it retards growth. Additionally, exchange
rate volatility has a significant positive impact on
inflation, suggesting that it escalates inflationary
pressures. Furthermore, exchange rate volatility has a
significant positive impact on unemployment, indicating
that it contributes to higher unemployment rates. However,
the study concluded that exchange rate volatility has a
significant negative impact on economic growth in
Nigeria. Exchange rate volatility has a significant positive
impact on inflation and unemployment in Nigeria. In light
of these findings, it is recommended that policymakers in
Nigeria should focus on implementing measures to reduce
exchange rate volatility, as it negatively affects economic
growth, increases inflationary pressures, and contributes
to unemployment. These measures may include enhancing
exchange rate stability through appropriate monetary and
fiscal policies, promoting export diversification, and
attracting foreign direct investment to improve exchange
rate management and stability.

Unpacking the Effect of Foreign Direct Investment on Tanzania’s Labor Market

Safina Daudi — 2025-02-25

This study examines the impact of foreign direct
investment (FDI) on labor market dynamics in
Tanzania using a 34-year time series dataset
(1990–2023). Advanced econometric methods,
including the Autoregressive Distributed Lag
(ARDL) model, Johansen Co-integration tests are
employed to analyze long-term and short-term
effects of FDI on employment creation and
productivity. Results reveal a significant positive
long-term relationship, with a 1% increase in
FDI leading to a 0.305% rise in labor force
participation, while short-term findings highlight
persistent labor market growth influenced by past
employment levels. From a monetary policy
perspective, the findings recommend that
macroeconomic stability is critical to enhancing
FDI’s effectiveness. Policymakers should
prioritize maintaining low inflation, stable
exchange rates, and favorable credit conditions
to attract sustainable FDI inflows. Furthermore,
aligning monetary policy with fiscal strategies to
direct investments into labor-intensive and
productivity-enhancing sectors can amplify FDI’s
impact on job creation. Strengthening
institutional frameworks, improving
infrastructure, and promoting access to finance
for complementary domestic industries are
essential for leveraging FDI to achieve inclusive
economic growth. These insights provide
actionable guidance for optimizing FDI's role in
Tanzania's sustainable development trajectory

Interrogating Students’ Low performance in English Language Subject in Government Primary Schools: Evidence from Dodoma City Council

Gloria Nangawe — 2025-03-10

This study aims at exploring the factors contributing to
low performance of English language subject in
government primary school in Dodoma city council. The
study using descriptive survey design which is appropriate
for collecting detailed data needed for the study. Data
were collected using questionnaire and In-depth
interview. The questionnaire targeted English teachers
and students, while interviews were conducted with head
of schools and educational administrator. Data from
interviews were analyzed thematically. Themes were
identified and coded to understand patterns and insights
related to the factors affecting students' performance.
Results indicate that the factors contributing to low
performance of English language in government primary
schools were; weak English background among pupils,
multilingual classes, and incompetent teachers on
language usage, limited resources, crowded classroom,
and overreliance on Swahili language, shortage of English
language teachers and lack of parents’ support and
interest. These findings offer valuable insights and it is
recommended that Ward Education Officer (WEO) and
head teachers need to report the correct and most useful
data about the number of English language teachers per
school, availability of teaching and learning resources like
books, its deficits and the quantities needed; this would
effectively enable the government to equally allocate these
resources. Moreover, students should be motivated to
acquire confidence wherever they make mistake in
language classroom to in courage them in language
learning.