This study examines the effect of Foreign Direct Investment (FDI) and trade openness on a firm’s export competitiveness and diversification among East African Community (EAC) members. Unlike previous studies, we investigated this issue to emerging region of EAC. The study uses traditional panel methods of fixed and random effect for the sample period 2010–2019. On one front, the effect of FDI on a firm’s export competitiveness and trade diversification were positive and statistically significant. On the other front, the effect of trade openness was positive and statistically significant only to export diversification but insignificant to export competitiveness. All results are robust to the alternative dependent variable, control variable, and sample size. Policy reforms to improve economic freedom, technological development, and strengthening the inter-relationship of the domestic sector with FDI and trade openness are required to improve export competitiveness and diversification.
Related Articles
Farmers’ Integrated Agricultural Marketing in Tanzania: Can’t the Digital Warehouse Receipt System Work?
Although the manual systems and processes are embraced to the point that the impression is created that digital transformation is not possible and the strong, efficient and effective digital systems and processes in the Warehouse Receipt System cannot work through cooperatives – transformation and digital transformation in the Warehouse Receipt System implemented through the AMCOS […]
Motorcycle Transport Business and Its Influence in Promoting Youth Employment in Tanzania: A Case of Morogoro Municipality
In the last decade, motorcycle transport has provided a new take off in the transportation industry, particularly in developing countries. This kind of transportation has gained significant popularity due to its nature of flexibility, affordability and adaptability attributes that have greatly increased its following among the youth, particularly in urban areas, where many of them […]
Locally-led adaptation: moving from principles to practice in the water sector
This Report focuses on locally-led adaptation in the water sector, examining progress and lessons learnt from water adaptation initiatives in East Africa’s drylands. The report introduces an assessment framework to evaluate how water adaptation projects align with the LLA principles, supplemented with a principle on Nature-based Solutions. The framework is then applied to examine six […]
Workshop Report: 27th Annual Research Workshop – 2023 “Galvanizing Inclusive and Sustainable Growth through Structural Transformation”
REPOA’s Annual Research Workshop continues to be the longest running and largest research workshop held in Tanzania by a Tanzanian organization, where researchers, research users, and development stakeholders meet to discuss research findings, their associated implications for development policy in Tanzania and propose areas of further strategic research.The 27th REPOA’s ARW was conducted at a […]