Volume 3, Issue 1, February 2014, Page: 15-28
Tanzania in the Face of International Trade: The Analysis of Revealed Comparative Advantage from 2009 to 2012
Nuran Ally Mwasha, School of Economics & Business Administration, Central China Normal University, Wuhan, China
Zabibu Kweka, College of Information Management, Central China Normal University, Wuhan, China
Received: Feb. 6, 2014;       Published: Mar. 10, 2014
DOI: 10.11648/j.ijber.20140301.13      View  3706      Downloads  365
Tanzania is the most promising current and the destination market for the world trade due to its copious resources and strategic location. It is well known in the region as the trade hub as it provides the influential and suitable trade solutions and investments. The aspiration of this paper is to analyse the Revealed Comparative Advantage (RCA) for the topmost export sectors and commodities in Tanzania from 2009 to 2012 by inspecting and evaluating its potency and competence in the world market compared to exports from other countries. Balassa’s index of Comparative advantage (RCA) was utilized to demonstrate the competitive sectors and commodities comparative advantage together with export data from UN com-trade and International Trade Centre (ITC). The outcomes show that Tanzania has significantly strong comparative advantages in sectors of traditional cash crops such as coffee, tea and spices and commodities found in mineral resources as the leading export sector and commodities for the period of four years with RCA greater than one. However, many sectors demonstrated lower RCA compared to individual commodities and the export products have been waning every year, the situation that needs the government to initiate the immediate measures to overcome such problem.
Revealed Comparative Advantage, Export Processing Zones, Tanzania, International Trade
To cite this article
Nuran Ally Mwasha, Zabibu Kweka, Tanzania in the Face of International Trade: The Analysis of Revealed Comparative Advantage from 2009 to 2012, International Journal of Business and Economics Research. Vol. 3, No. 1, 2014, pp. 15-28. doi: 10.11648/j.ijber.20140301.13
African Development Fund, (2007), Project completion reports (PCR) of Structural Adjustment Loan (Sal); Republic of Tanzania; Governance, economic and financial reforms department, March 2007.pp 02-16
African Economic Outlook, (2002), Tanzania; OECD/ AfDB, 2002; pp 279-290. (Online) available: http://www.oecd.org/countries/tanzania/1826462.pdf
African Economic Outlook, (2013), Tanzania http://www.africaneconomicoutlook.org/fileadmin/uploads/aeo/2013/PDF/Tanzania%20%20African%20Economic%20Outlook.pdf
Bariyo, N. (2013), Tanzania 2012 Gold Export Earnings Drop 3% on Year – Central Bank. (Online) Available: http://www.euroinvestor.com/news/2013/02/20/tanzania-2012-gold-export-earnings-drop-3pct-on-year-central-bank/12216199 (February 20, 2013)
Batra, A., & Khan, Z. (2005), Revealed Comparative Advantage: An Analysis for India and China: Indian Council for Research on International Economic Relations; WORKING PAPER NO. 168; India Habitat Centre, New Delhi
Bigsten, A. & Danielsson, A. (1999), Is Tanzania an Emerging Economy? A report for the OECD project" Emerging Africa", Sweden. pp 08-24
Bonarriva, J. Koscielski, M. & Wilson, E. (2009), Export Controls: An Overview of their Use, Economic Effects, and Treatment in the Global Trading System; International Trade Commission, working paper no. ID – 23, USA, p. 06-10
Brylinsky, T. (1996) Structural Adjustment, the Environment and Sustainable Development: Under what conditions will 'sensible' economic policies have unintended social, economic, and environmental consequences?" Case of Tanzania, (London: Earthscan, 1996):107 - 127.
Chingarande, A., Mzumara, M., & Karambakuwa (2013), Comparative Advantage and Economic performance of East African Community (EAC) Member States; J Economics, 4(1): 39-46(2013).
CIA (2014), The World Factbook; Tanzania. (Online) Available: https://www.cia.gov/library/publications/the-world-factbook/geos/tz.html
Dixit, A. & Norman, V. (2002), Theory of International Trade; Shanghai University of Finance & Economic Press. p. 01-05
Eifert, B., Gelb, A. & Ramachandran, V. (2005), Business Environment and Comparative Advantage in Africa: Evidence from the Investment Climate Data: Centre for Global Development; Working Paper Number 56, February 2005. pp18- 27
Economy Watch (2010) Tanzania Trade, Exports and Imports: (Online) Available: http://www.economywatch.com/world_economy/tanzania/export-import.html
Foxley, A., (2009) RECOVERY; the Global Financial Crisis and Middle-Income Countries: Carnegie Endowment for International Peace, Massachusetts Avenue, NW. p. 18-25
Hill, C., W. (2008) International Trade Theory, sixth Edition, Published by McGraw – Hill Companies, Inc and Posts & Telecom Press. p. 44-106
Investors Guide to Tanzania: Tanzania Investment Centre; Available at http://www.tic.co.tz/media/2013-TIC-Investment-Guidebook_2.pdf
Isaac, S. & Othieno, L. (2011) Uganda’s Revealed Comparative Advantage: The Evidence with the East African Community (EAC) and China; EPRC, Towards Sustainable Development; First draft, February 2011. pp. 01
ITC User Guide,—, Trade Competitiveness Map: Benchmarking national and sectoral trade performance; Market Analysis and Research Division of Market Development; Trade Performance Hs International Trade Centre
ITC, —, Trade Competitiveness Map; Analyse Country and Products Competitiveness with Trade Flows. (Online) Available: http://legacy.intracen.org/appli1/TradeCom/TP_EP_CI.aspx?RP=834&YR=2009
Jerving, S. (2013) Tanzania Concerned Gold Slump May Prompt Mines to Shut; Bloomberg Sustainability. (Online) Available: http://www.bloomberg.com/news/2013-04-16/tanzania-concerned-gold-slump-may-prompt-mines-to-shut.html (April 17, 2013)
Jurčić, L., & Teodorović, I. (2011) Global Crisis, Recovery and the Changing World: Ekonomski Pregled, 62 (5-6). pp. 233-247
Krugman, P., R. & Obstfeld, M. (2006) International Economics: Theory and policy; 7th edition, published by Pearson Education Asia Ltd. p 4-205
Lange, S. (2008) Land Tenure and Mining in Tanzania; CMI Report. (Online) Available http://www.cmi.no/publications/file/3008-land-tenure-and-mining-in-tanzania.pdf
Lunogelo, H.B., Mbilinyi, A., & Hangi, M (2010) Global Financial Crisis Discussion Series; Paper 20: Tanzania Phase 2; Overseas Development Institute, 111 Westminster Bridge Road, London, p 01-07
Maehle, N., Teferra, H. & Khachatryan, A. (2013) Exchange Rate Liberalization in Selected Sub-Saharan African Countries: Successes, Failures and Lessons; International Monetary Fund, working paper /13/32, pp. 39-45
MAFAP, (2013), Review of food and agricultural policies in the United Republic of Tanzania. MAFAP Country Report Series, FAO, Rome, Italy. pp. 52-65
Morris, S. (1993), Inflation dynamics and the parallel market for foreign exchange; Journal of Development Economics Vol. 46 (1995),pp. 295-316
Muchanyuri, B. & Mzumara, M. (2013), Inter-Sectoral Comparative Advantage of Tanzania and Impact on International Purchasing: Greener Journal of Business and Management Studies; Vol. 3 (8), pp.361-368.
Mwasha, N., A. (2013), An Over-view of Online Recruitment: The Case of Public and Private Sectors in Tanzania; European Journal of Business and Management, Vol.5, No.32, 2013. pp. 11-21
Mzumara, M., Chingarande, A., & Karambakuwa, R. (2012) An Analysis of the Revealed Comparative Advantage in Southern African; Journal of Sustainable Development in Africa (Volume 14, No.8, 2012). ISSN: 1520-5509. pp 50-74
Pearson, S., R & Meyer, R., K. (1974), Comparative Advantage among African Coffee Producers. American Journal of agricultural economics; Volume, 56 (2): pp 310-313
Portstrategy, (2013) Tanzania Shake-up. (Online) available: http://www.portstrategy.com/news101/insight-and-opinion/post-script/tanzania-shake-up
Pugel, A., T. (2005): International Trade, 12th Edition. Published by McGraw-Hill Education (Asia Co.) & China Renmin University Press. p. 17-149
Reuters (2012),Tanzania Trade Deficit Double due to oil demand (June 5,2012). (Online) Available : http://www.reuters.com/article/2012/06/05/tanzania-deficit-idAFL5E8H596M20120605
Serin, V., & Civan, A. (2008), Revealed Comparative Advantage and Competitiveness: A Case Study for Turkey towards the EU. Journal of Economic and Social Research 10(2) 2008, 25-41
Tanzania Bureau of Statistic (2012) Population and Housing Census 2012: (Online) Available: http://www.nbs.go.tz/sensa/new.html
TIC, Prime minister’s Office, (2013).Tanzania investment Guide 2013-2014.pp 07-16 (Online) Available: http://www.tic.co.tz/menu/179
UNIDO, (2012), Tanzania Industrial Competitiveness Report 2012; Ministry of Industry and Trade of the United Republic of Tanzania (MIT), pp 29-29
UN comtrade, (2010) United Nation Commodity Trade Statistics Database. (Online) Available: http://comtrade.un.org/db/
URT, (2003), National Trade Policy; Trade Policy for a Competitive Economy and Export-Led Growth, Ministry of Industry and Trade, Dar es Salaam, pp. 15-21
URT, (2009), Tanzania Trade Integration Strategy, 2009-2013; Ministry of Industry, Trade and Marketing, pp 10-13
URT, Prime Minister’s office (----) Investment Potentials and opportunities in Agriculture: Tanzania Investment Centre
URT, MA F S C (2009) INVESTMENT POTENTIAL AND OPPORTUNITIES IN AGRICULTURE (CROP SUB-SECTOR); (Online) available http://www.agriculture.go.tz/highlights/AGR%20POTENTIAL%20REVISED%20NEW%20VERSION%20Final-2-%20NEW.pdf
Wangwe, S., M. (1996) Economic reforms and Poverty Alleviation in Tanzania; Employment paper 7, Employment and training Department, International Labor Office Geneva
Wizara ya Uchukuzi (2011), Taarifa ya Miaka 50 ya Uhuru wa Tanzania Bara (1961- 2011), (Desemba 2011), pp. 32-46
Wobst, P. (2001) Structural Adjustment and Intersectoral Shifts in Tanzania; A Computable General Equilibrium Analysis: Research Report 117, International Food Policy Research Institute, Washington, D.C
Browse journals by subject