The Role of Government Intervention on Agricultural Growth in Tanzania: Case of Cotton

Kulaya, Prosper Michael (2020) The Role of Government Intervention on Agricultural Growth in Tanzania: Case of Cotton. Masters thesis, The Open University of Tanzania.

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Abstract

This study intended to examine the role of the Government Intervention on growth of the agricultural sector which is the back-bone of the Tanzanian economy basing on the number of populations who rely on agriculture for their life sustenance. The case study is cotton farming in Tanzania which is the main economic earning for about 40% of Tanzanian population. The study intended to analyze the factors affecting cotton farming in Tanzania and the role of the government to optimize those factors. The result of the study indicates that, cotton output is positively correlated with distributed seeds for planting (0.52), distributed pesticides (0.463), government budget support (0.145) and farm-get price (0.04). Distributed seeds and pesticides are statistically significant (0.001 and 0.005 respectively) while farm-get price (0.909) and budget support (0.442), though positive they are insignificant. Number of extension officers on the other hand shows the inverse relationship with cotton production, calling for critical analysis on the proper way to realize their contribution on agricultural growth. Based on the coefficient of determination (R2) of 0.754, there is a strong relationship between variables. Thus, the variables under the study are capable to explain 75.4% of variation in dependent variable while 24.6% can be explained by other factor not included in the model, calling for further study to analyze those determinants. Therefore, the study recommends the government to optimize availability and access to these key inputs for cotton farming aimed to complement significantly on attainment of macroeconomic objectives.

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