[ 19th December 2005 by Kumar Gaurav 0 Comments ]

Institutional reforms to attract foreign direct investments (FDIS) as a strategy for economic growth: What has Tanzania done?

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Institutional reforms to attract foreign direct investments (FDIS) as a strategy for economic growth: What has Tanzania done?

HONEST PROSPER NGOWI, MZUMBE UNIVERSITY, TANZANIA

The paper documents some institutional reforms that Tanzania has undertaken to attract more FDIs as one of strategies for its economic growth. It is found that Tanzania has undertaken many far reaching institutional reforms as a trategy to attract more FDI inflows. The reforms include reforms in the political system; economic management; and government administration. These reforms have been among the major factors responsible for the increased FDIs inflow into the country. It is concluded therefore that institutions matter in influencing economic behaviour generally and that institutional reforms are important in attracting more FDIs into a country.
Keywords: Foreign Direct Investments; Institutional Reforms; Tanzania

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