Analyzing the impact of remittance inflows on Tanzania’s social development and economic growth

Figures & data

Figure 1. Remittances, foreign direct investment and official development assistance inflows to Tanzania. Source: IMF, World Economic Outlook, October 2023.

Figure 2. Graphical representation of data set.

Table 1. Variables and measuring units.

Sr. No	Variable names	Abbreviations	Measuring unit
1	Economic growth	EGrow	As % of GDP
2	Remittance	REM	In current US$
3	Investment	INV	In the current local currency
4	Population growth	POP Grow	As annual %
5	Exchange rate	EXCHR	In current US$
6	Government expenditure	GOVEXP	As % of GDP
7	Inflation	INFL	As annual %

Table 2. Descriptive statistics.

	REM	E_GROW	EXCH_R	GOV_EXP	INFL	INV	POP_GROW
Mean	1403586	10117.17	8.470821	0.076857	0.080459	0.214727	0.019832
Median	728727	9669.877	8.231263	0.069486	0.046351	0.221917	0.019501
Maximum	5101953	14728.74	17.18832	0.137748	0.272069	0.282174	0.027416
Minimum	−225686.1	6947.593	1.338334	0.053247	0.022109	0.117051	0.011875
Std. Dev.	1414594	2675.284	4.555838	0.024625	0.065084	0.043622	0.002697
Skewness	0.522076	0.353778	0.27748	1.312863	1.286504	−0.405934	0.065167
Kurtosis	2.053411	1.624953	1.970881	3.626357	3.464129	2.131054	4.233944
Jarque-Bera	32.77372	39.45793	22.5566	120.2316	112.7905	23.33423	25.40347
Probability	0	0	0.000013	0	0	0.000009	0.000003
Sum	5.56E + 08	4006398	3354.445	30.43535	31.86188	85.03192	7.853665
Sum Sq. Dev.	7.90E + 14	2.83E + 09	8198.487	0.239528	1.673215	0.751629	0.002873
Observations	396	396	396	396	396	396	396

Note. REM: remittance; Egrow: economic growth; EXCHR: exchange rate; GOVEXP: government expenditure; INFL: inflation; INV: investment; POP Grow: population growth rate

Table 3. Fisher-type unit-root test.

Variable	Inverse chi-squared (24)		Inverse normal Z		Inverse logit t (64) L*		Modified inv. chi-squared Pm
	Statistic	p Value	Statistic	p Value	Statistic	p Value	Statistic	p Value
REM	3.2582	1.0000	4.0297	1.0000	3.8104	0.9998	−2.9938	0.9986
E_GROW	0.0249	1.0000	10.6671	1.0000	13.2264	1.0000	−3.4605	0.9997
EXCH_R	15.2294	0.9139	0.3083	0.6211	0.2757	0.6082	−1.2659	0.8972
GOV_EXP	25.2762	0.3909	−1.2888	0.0987	−1.1575	0.1257	0.1842	0.4269
INFL	63.0172	0.0000	−5.0269	0.0000	−4.9011	0.0000	5.6316	0.0000
INV	8.9190	0.9978	1.7505	0.9600	1.5756	0.9400	−2.1768	0.9853
POP_GROW	70.5215	0.0000	−5.5982	0.0000	−5.5513	0.0000	6.7148	0.0000

Note. REM: remittance; Egrow: economic growth; EXCHR: exchange rate; GOVEXP: government expenditure; INFL: inflation; INV: investment; POP Grow: population growth rate

Table 4. xtcointtest Kao REM, E_GROW, EXCH_R, GOV_EXP, INFL, INV and POP_GROW.

	Statistic	p Value
Modified Dickey–Fuller t	−14.6693	0.0000
Dickey–Fuller t	−7.5046	0.0000
Augmented Dickey–Fuller t	−6.9432	0.0000
Unadjusted modified Dickey–Fuller t	−17.1643	0.0000
Unadjusted Dickey–Fuller t	−7.8089	0.0000

Table 5. xtdolshm.

	Coefficient	Std. err	z	p > z	[95% conf	Interval]
INV	−5961980	973,558.7	−6.12	0.000	−7,870,120	−4,053,840
POP_GROW	4.28e + 07	7,036,243	6.08	0.000	2.90e + 07	5.66e + 07
GOV_EXP	−4.92e + 07	1,215,587	−40.45	0.000	−5.15e + 07	−4.68e + 07
INFL	2.18e + 07	424,541.7	51.25	0.000	2.09e + 07	2.26e + 07
E_GROW	616.6234	23.31031	26.45	0.000	0. 570.936	662.3107

Table 6. xtcointreg.

	Coefficient	t-Statistics
INV	−8.2e + 06	−12.42
EXCH_R	−2.8e + 05	−28.98
POP_GROW	7.9e + 07	14.94
GOV_EXP	−4.3e + 06	−4.34
INFL	9.6e + 06	27.85
E_GROW	1072.24	58.07

Table 7. Cointegration regression (FMOLS).

REM	Coefficient	Std. err	z	p > z	[95% conf	interval]
INV	−7,083,832	288,355.5	−24.57	0.000	−7,648,998	−6,518,666
EXCH_R	−208,089.3	3386.22	−61.45	0.000	−214,726.1	−201,452.4
POP_GROW	7.17e + 07	2,273,271	31.53	0.000	6.72e + 07	7.61e + 07
GOV_EXP	−2,907,300	428,790.4	−6.78	0.000	−3,747,714	−2,066,886
INFL	9,205,911	141,337.3	65.13	0.000	8,928,895	9,482,927
E_GROW	938.9029	6.963487	134.83	0.000	925.2547	952.551
_CONS	−6,743,647	46,939.88	−143.67	0.000	−6,835,647	−6,651,646

Data availability statement

Data available on request from the author.