Determinants of Leather and Leather products Exports in Tanzania
Determinants of Leather and Leather products Exports in Tanzania

Summary/Abstract: This study examines the determinants of Leather and Leather products Exports in Tanzania. We apply Ordinary Least Square (OLS) analysis on time series data from 1980 to 2015. The findings show that export of raw hides and skins, and high costs of production are among the deterring factors to leather and leather products export in Tanzania. Export of raw hides and skins and costs of production recorded negative and significant relationship with leather exports. On the other hand, hides and skins collection recorded insignificant relationship while leather price in the world market had negative and significant relationship with leather exports. This suggests that other factors such as low quality of leather and leather products exported, inadequate capital investment, stiff competition with foreign companies for hides and skins and inadequate market information explain the state of current Tanzania’s leather exports. Thus, attracting local and Foreign Direct Investment (FDI) in the leather subsector by providing friendly investment climate and addressing the supply side constraints will enable increased high quality leather and leather products diversification and exports.

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