The Best FDI Inflows Can Do on Unemployment Rates in Tanzania: A Time Series Analysis.

The paper explores the impact of Foreign Direct Investment (FDI) on unemployment rates in Tanzania, utilizing data spanning from 1992 to 2022. It is essential to recognize that many least-developed countries (LDCs) have strategically implemented measures to boost FDI acquisition, acknowledging its direct influence on national growth through increased employment opportunities. The study utilizes the Augmented Dickey-Fuller (ADF) test to examine the unit root and subsequently applies the Autoregressive Distributed Lag (ARDL) model. The findings indicate that FDI and GDP growth rates exhibit appropriate signs. Importantly, the paper establishes a negative relationship between the unemployment rate and FDI inflows in Tanzania. Therefore, to alleviate unemployment, it is crucial for the Tanzanian economy to actively attract more FDI. Achieving this objective requires leveraging policy instruments such as exchange rates, inflation management, political stability, human capital development, and optimizing legal and regulatory frameworks. Implementing these measures will create a conducive environment for increased FDI inflows into Tanzania. [ABSTRACT FROM AUTHOR]