Record Details

Macroeconomic Environment and Firm level Performance in Tanzania

African Journal of Economic Review

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Field Value
 
Title Macroeconomic Environment and Firm level Performance in Tanzania
 
Creator Kahyarara, Godius
 
Subject Firm Performance; Macroeconomic Environment; Generalized Methods of Moments; Tanzania
 
Description This paper examines the influence of macroeconomic environment on firm level performance. Specifically, it assesses the influence of macro variables of Taxation, corruption, availability of business support, cost of domestic raw materials, inflation, cost of imported raw materials, access to credit, interest rates and insufficient market demand on firm level productivity. The paper attains the empirical analysis via estimating a Cobb Douglas production function. The rich panel data set used enables control for unobserved time invariant firm specific attributes that might be influencing the estimations.  Paper findings are that macroeconomic environment has strong impact on observed firm performance.  The paper does not find any significant effect of inflation, interest rate and corruption on firm level performance.  The results are not statistically significant even after control for unobserved characteristics using panel data estimations techniques of Generalized Methods of Moments.  The results lead to a conclusion that to facilitate firm level performance efforts need to focus on reducing tax burden, increased business support, reduced cost of imported raw materials as well as access to credit.
 
Publisher Centre for Economics and Community Economic Development
 
Date 2021-04-20
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://www.ajol.info/index.php/ajer/article/view/206173
 
Source African Journal of Economic Review; Vol. 9 No. 2 (2021); 223-237
2453-5966
1821-8148
 
Language eng
 
Relation https://www.ajol.info/index.php/ajer/article/view/206173/194409