Pathology of a Crisis in Industrial Development: Tanzania after 1974

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Periodical article

Title:	Pathology of a Crisis in Industrial Development: Tanzania after 1974
Author:	Mbelle, Ammon V.Y.
Year:	1987
Periodical:	Eastern Africa Economic Review
Volume:	3
Issue:	2
Period:	December
Pages:	95-103
Language:	English
Geographic term:	Tanzania
Subjects:	industrial development Development and Technology Economics and Trade
Abstract:	This paper investigates the performance of the manufacturing sector in Tanzania with the help of multiple regression and frontier production functions analysis. The poor performance of the manufacturing sector is attrributed to low capacity utilization, brought about by decreased availability of imported inputs and reduced operational time, and by inefficiency in the use of inputs. To improve the performance of manufacturing, it is recommended that allocation of foreign exchange for the importation of raw materials and machine spares be increased, and smooth flow of infrastructural inputs be ensured. Capacity expansion should be related to current capacity utilization. This will ensure that capacity expansion, when existing capacities are not fully utilized, is halted. In turn, this will release resources for strengthening existing capacities. Also, concrete efforts should be made to increase efficiency. App., bibliogr., notes.