Browsing by Author "Miku, Benjamine G."

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Effects of Macroeconomic Variables on Banks’ Lending in Tanzania
(Tanzania Institute of Accountancy, 2023-06) Miku, Benjamine G.; Mpojota, Amour S.; Joseph, Emmanuel S.; Charles, Geofrey M.
The purpose of this paper is to analyse the effects of macroeconomic variables on banks’ lending in Tanzania. The study applies the Autoregressive Distributed Lag Model (ARDL). Time series data were analysed yearly covering the period of 1970 to 2021. The contribution of this particular study is provision of empirical evidence of whether macroeconomic variables affect banks’ lending behaviour in Tanzania and provide evidence-based policy implication for the country with regard to the financial sector and banks’ lending in Tanzania. The empirical results show that there is a significant short-run negative impact of M3 Money Supply in overall commercial banks’ lending rate in Tanzania which ultimately impact positively commercial banks’ credit lending behaviour. An increase in money supply would lead to a decrease in interest rate. This would ultimately lead to an increase in banks’ lending, which is expected to increase because banks would become more liquid resulting into stimulation of banks’ lending behaviour. By implication, a contractionary Monetary Policy in a country would inhibit banks’ lending as banks run out of liquidity and therefore lending rate would be high. However, excessive bank lending to unproductive and speculative sectors due to a lower rate of interest would lead to unnecessary increase in money supply and hence inflation. This would necessitate the government and the monetary authority of the country to put in place measures to control the rate of inflation to a desirable level. The changes in money supply have direct impact on prices and economic activities and that the relationship between money supply and inflation is much predictable in the long-run than in the short-run. The study suggests that more economic activities act as stimulators of banks’ lending. When more economic activities are in place in an economy then the likelihood of banks to lend to such economic activities is increased. The study thus advises policy makers to put in place conducive environment which could attract more business opportunities to which banks could extend credit
Equal Access to Land Ownership Between Men and Women in Tanzania: Does the Legal System Matter?
(African Journal of Accounting and Social Science Studies (AJASS), 2023-12) Miku, Benjamine G.; Joseph, Emmanuel S.; Mpojota, Amour S.; Nyaborogo, Happiness P.; Charles, Geofrey M.
This paper examines how people perceive the legal system on equal access to land ownership in Tanzania. Cross-sectional data from an Afro barometer survey, round seven (7) with 2,400 observations were analysed to find the effect of how people perceive the legal system on equal access to land ownership in Tanzania by using a Probit regression analysis. The outcome of the study shows that, when courts make a binding decision, people are more likely to agree that women have equal land rights (𝑝 = 0.037), obeying the law positively influences women to have equal rights to land (𝑝 = 0.003). In terms of the effects of empowering women on equal right to land, it was found that when men and women have equal chances of earning income, this positively influences the likelihood of women to have equal right to land. The study further found that there is a gender disparity in matters related to land ownership as men do not believe that women have equal land rights. The findings imply that the efforts which are geared towards strengthening the rule of law and legal compliances could help to promote gender equality by emphasizing respect for women’s land rights. Measures taken to increase awareness, change of attitude and understanding of the rule of law when effectively implemented would lead to advancing gender equality and women’s land rights. Efforts which promote and protect women’s land rights will result in advancing gender equality and women's economic empowerment. An effective legal system is crucial in promoting and protecting women’s land rights. Gender equality in society’s economic opportunities can have a positive effect on women’s land ownership rights and lastly addressing gender disparities in land ownership promotes women’s land rights. Among other recommendations, the study recommends that the Government, Civil Societies and Non-Governmental Organizations should cooperate in enhancing more legal reforms in Tanzania in strengthening laws and policies which protect women’s right to own and inherit land. The Government should take the lead in enforcing and publicizing the laws which help to raise awareness of women’s right to land ownership in the communities. Men and boys should also be educated on the benefits of gender equality and the negative impacts of gender discrimination.
Pathways to Prosperity: Analysing the Dilemma of Choosing between Official Development Assistance and Foreign Direct Investment in Tanzania
(African Journal of Accounting and Social Science Studies (AJASS), 2023-12) Miku, Benjamine G.; Joseph, Emmanuel S.; Mpojota, Amour S.; Nyaborogo, Happiness P.; Mligo, Gerald
This paper explores the complex-decision decision-making process faced by policymakers in Tanzania when selecting between Official Development Assistance (ODA) and Foreign Direct Investment (FDI) for driving economic prosperity. It employs the Vector Error Correction Model (VECM) to capture dynamic interrelationships among long-run co-integrated variables. Analysing yearly time series data from 1980 to 2021, the study reveals that variables used in the analysis exhibit a co-integrating relationship and that they have a long-term equilibrium relationship. Official Development Assistance per capita lagged to one period and is significantly and negatively related to the growth rate of Gross Domestic Product (GDP). Furthermore, ODA per capita lagged to two periods is significantly and negatively related to the growth rate of GDP, and ODA lagged to three periods is negatively related to the growth rate of GDP. Additionally, FDI per capita lagged to one period and is negatively related to GDP. The paper highlights the complexity of the decision-making process and recommends that policymakers assess financing strategies, explore factors hindering positive contributions of FDI and ODA and prioritize domestic investment to foster self-reliance and reduce dependence on external funding sources