Economic analysis of the Fisheries and Agriculture sectors for the economic development of Tanzania. An Empirical Study with the VAR Approach

Fisheries and agriculture sectors play a pivotal role in the economic development of Tanzania but are faced with several challenges, including but not limited to climate change, inadequate infrastructure and overfishing. This study investigates the economic interdependencies between the fisheries and agriculture sectors in Tanzania, utilising a Vector Autoregression (VAR) approach with time series data from 1990 to 2021. Given the significance of these sectors, the study explores how fluctuations in fisheries and agricultural productivity impact GDP growth. The study aims to identify causal relationships and dynamic interactions, providing insights into how policy interventions can influence sectoral output. The findings from the VAR analysis reveal significant relationships among fishing, agriculture and GDP growth, highlighting the interconnectedness of these sectors. Notably, agriculture demonstrates a strong Granger-causal effect on both GDP and fishing, suggesting that advancements in agricultural practices and productivity can stimulate economic growth and positively influence the fishing sector widely. The study underscores the policy significance of a holistic approach to agricultural and fisheries development in achieving sustainable economic growth in Tanzania. Furthermore, it highlights the need for collaborative strategies that enhance resource management and investment in both sectors for improving the socio-economic conditions of communities reliant on these industries.