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<p>The aim of the paper is analysis of business start-up and procedures, technical cooperation, and employment in industry as economic drivers on GDP Per Capita in Tanzania using a quantitative approach, utilizing regression analysis, VAR basic analysis, Johansen test of cointegration, and granger causality test on time series data from 1990 to 2023. The regression analysis revealed that employment in the industry had a strong positive impact on GDP per capita (coefficient = 0.5552, t-value = 27.90, <i>p</i>-value = 0.000). However, the cost of business start-up and procedures (% of GNI per capita) negatively affected GDP per capita (coefficient = − 0.0817, t-value = − 5.61, <i>p</i>-value = 0.000). Furthermore, the Granger causality test showed a one-way causality where employment in the industry significantly influences GDP per capita (chi-square = 13.945, <i>p</i>-value = 0.001). This study highlights that reducing the cost of business start-up procedures is vital for fostering entrepreneurship and innovation, as high start-up costs negatively impact GDP per capita by limiting business formation, competition, and economic efficiency. Furthermore, the strong positive relationship between employment in industry and GDP per capita calls for policies that promote industrial job creation to drive sustainable economic growth and enhance national productivity. This paper demonstrates the significant impact of employment in the industry on GDP per capita, highlights the negative influence of high business start-up costs on economic growth, posing empirical evidence to guide policy interventions in developing economies like Tanzania.</p>

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Economic drivers of GDP per capita growth in Tanzania: the role of start-up costs, industrial employment, and technological cooperation

  • 期刊论文

  • 发表日期：

    2026年1月28日

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  • Bikiombe Kachunga,
  • Anthony Nyangarika,
  • Alexey Mikhaylov,
  • Dmitry Morkovkin,
  • Farooq Ahmed Shah

摘要

The aim of the paper is analysis of business start-up and procedures, technical cooperation, and employment in industry as economic drivers on GDP Per Capita in Tanzania using a quantitative approach, utilizing regression analysis, VAR basic analysis, Johansen test of cointegration, and granger causality test on time series data from 1990 to 2023. The regression analysis revealed that employment in the industry had a strong positive impact on GDP per capita (coefficient = 0.5552, t-value = 27.90, p-value = 0.000). However, the cost of business start-up and procedures (% of GNI per capita) negatively affected GDP per capita (coefficient = − 0.0817, t-value = − 5.61, p-value = 0.000). Furthermore, the Granger causality test showed a one-way causality where employment in the industry significantly influences GDP per capita (chi-square = 13.945, p-value = 0.001). This study highlights that reducing the cost of business start-up procedures is vital for fostering entrepreneurship and innovation, as high start-up costs negatively impact GDP per capita by limiting business formation, competition, and economic efficiency. Furthermore, the strong positive relationship between employment in industry and GDP per capita calls for policies that promote industrial job creation to drive sustainable economic growth and enhance national productivity. This paper demonstrates the significant impact of employment in the industry on GDP per capita, highlights the negative influence of high business start-up costs on economic growth, posing empirical evidence to guide policy interventions in developing economies like Tanzania.