Industrialization policy implementation and Economic Growth nexus within political dynamics in Tanzania

This article examines the relationship between industrialization policy implementation and economic growth in Tanzania from 1990 to 2021, utilizing 32 years of time series data from the World Bank. A unique contribution is the application of a Simultaneous Quantile Regression (SQR) model within the framework of De Facto Power Relations. We use the SQR model to analyse the effect of industrialization on economic growth while controlling for agriculture, energy, and governance. The findings indicate that Tanzania's GDP grew at an average annual rate of 5.2%, with the industrial sector significantly contributing to this growth, especially at the 75th quantile. The fifth regime showed a notable 7% positive impact on economic growth through industrial sector growth, despite negative contributions from agriculture during that time. In contrast, the sixth regime experienced a rebound in agricultural growth due to increased budget allocations. The article emphasizes the importance of accessible energy for economic development, advocates for a holistic governance approach to industrialization including the establishment of an Independent Industrial Policy Council to ensure consistent policy execution across political regimes and suggests the expansion of Special Agro-Industrial Processing Zones (SAPZs). These measures aim to enhance industrialization for economic growth and societal advancement in Tanzania.