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Objective: The current study analyzed how Tanzania's inflation is affected by the money supply. Fisher's equation of exchange was the subject of the current study. Methods: Before estimating the equation, the study tested for unit root problem in the series. Money was differenced stationary, while inflation was trend stationary. This allowed for co-integration test which confirmed long run relationship in two out of five approaches. Vector error correction (VEC) followed by vector auto regressive (VAR) model, paved way for Granger-causality test. Nevertheless, the study also pursued stability test after VEC and VAR estimation. Results: The VEC analysis proved a short run positive effect of money supply on inflation. However, under VAR, the positive relationship lasted for one year and reversed two years later. The Granger-causality test proved a unidirectional causality with broad money causing consumer price index. Originality: This is the only study that employed a pure Fisher's equation of exchange to uncover the effect of broad money on inflation in Tanzania which was verified though not in the long run. [ABSTRACT FROM AUTHOR]

The current study analyses household consumption and income inequality using two levels; varying-intercept and varying-slope hierarchical linear model (HLM). The findings revealed higher levels of average consumption and income among urban as compared to rural households. On average, urban households face higher inequality in both income and consumption than rural households. Consumption dispersion is also much closer to income dispersion in rural stratum than urban strata. The novelty of the current study is the analysis of strata estimates deviations from overall National Panel Survey (NPS) sample estimates using two levels HLM. However, the application of more than two levels HLM that includes other socio-economic factors will significantly impact the methodology. [ABSTRACT FROM AUTHOR]

Information and communication technology (ICT) utilization has proved to be influential in business performance among small and medium enterprises (SMEs). Many studies have analyzed the effect of ICT on business performance at a firm level. The current study, however, analyzes the effect of ICT utilization on business performance using national average data. The main objective of this study was to analyze the effect of ICTs utilization on business performance and how business performance as a latent variable can be measured by logistic performance indices. The study used structural equation modeling to analyze the influence of logistic performance indices on the business performance measurement model. All post-estimation tests show that the current study's model is the best fit. The results show that logistics performance indicators are good measurements of business performance. Nevertheless, the use of ICTs significantly improves business performance among countries. Policymakers should focus their attention in influencing the adoption of ICTs for sustainable competitiveness. Future studies, however, should concentrate on how best the ICT variables can be grouped to make a confirmatory factor analysis. [ABSTRACT FROM AUTHOR]

Information asymmetry that dominates almost all market operations deters market performance and in some markets may lead into non-existence of market due to adverse selection problem. This paper hypothesizes that online trading reduces adverse selection problem in Smartphone market. The findings show that high quality Smart phones sell more than low quality Smart phones. Therefore, trading online induces signaling which reduces the problem of information asymmetry thereby offsetting adverse selection problem. [ABSTRACT FROM AUTHOR]

Tanzania is striving to become a middle income country by 2025. So plans are laid down and efforts put forward to industrialize the economy. In 2010 the government initiated a Five Year Development Plan 2010-2015, aiming at promoting industrialization. This work analyzed the effect this development plan had on industrial output with 45 industries observed in both 2009 and 2013. The findings show that industries were more productive in 2013 than in 2009. Output, labor and energy have all grown positively from 2009 to 2013. It is proposed that this development plan effectively improved industrial production. For fast industrial growth, more is desired from the government, for instance, improved roads, railways, airways and marine transportation. [ABSTRACT FROM AUTHOR]

This paper analyzed the effect of Yuan revaluation on China's external trade performance. Using break point unit root analysis, 1994 has revealed to be the beginning of a new regime for real effective exchange rate implying that Yuan peg to US Dollar really played a central role in influencing real effective exchange rate. Though in the short run real effective exchange rate influence on trade seems unimportant, in the long run the influence is positive and economically significant. Since trade involves more than one country, growth in foreign economic activities influences China's exports growth the same way as China's economic growth influences import growth. [ABSTRACT FROM AUTHOR]

This paper analyzes buoyancy and elasticity estimates of different tax items on import base. Using the Divisia Index approach, the buoyancy estimates have been used to estimate elasticity estimates. The findings reveal positive buoyancy and elasticity estimates. Since the Divisia Index values are positive but less than unit, their logarithm values are negative, making the discretionary portion of the buoyancy estimate to be negative. The negative discretionary portion of the buoyancy estimates resulted into higher values of elasticity compared to buoyancy estimates. The government should broaden the tax base, reduce tax rates and reduce tax exemption in order to improve revenue collection without resorting to higher tax rates. With lower tax rates and higher penalties on tax evasion and tax avoidance, higher government revenue can be realized to meet growing government expenditure. [ABSTRACT FROM AUTHOR]