Selected Issues Papers

The Business Environment and Productivity in Tanzania: Evidence from Firm Level Data

By Melesse Tashu

July 18, 2025

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Format: Chicago

Melesse Tashu. "The Business Environment and Productivity in Tanzania: Evidence from Firm Level Data", Selected Issues Papers 2025, 098 (2025), accessed July 19, 2025, https://doi.org/10.5089/9798229017916.018

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Summary

Using the World Bank’s Enterprise Surveys (ES) data, this paper sheds light on the relationship between total factor productivity (TFP) and the business environment in Tanzania. It finds statistically significant evidence that cumbersome tax administration, limited access to finance, and limited access to transport are associated with lower firm TFP in the manufacturing sector. While regression coefficients are not statistically significant, indicators of regulatory burden and power outage are also negativelly associated with TFP. These results underscore the importance of improving efficiency of tax administration, easing the regulatory burden, and improving access to finance and reliable infrastructure.

Subject: Business environment, Commodities, Corruption, Crime, Domestic credit, Economic sectors, Electricity, Gross fixed investment, Money, National accounts, Production, Productivity, Revenue administration, Tax administration core functions, Tax refunds, Total factor productivity

Keywords: Business environment, Business environment, Corruption, Domestic credit, Electricity, Firm performance, Gross fixed investment, Manufacturing, Productivity, Tax administration core functions, Tax efficiency, Tax refunds, Total factor productivity, Total factor productivity

Publication Details

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