Structural Modelling of Psychological Limiting Factors for Economic Growth in Mwanza and Kagera Regions in Tanzania.

Bundala, Ntogwa Ng’habi (2021) Structural Modelling of Psychological Limiting Factors for Economic Growth in Mwanza and Kagera Regions in Tanzania. Doctoral thesis, The Open University of Tanzania.

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Abstract

The study aimed to develop a structural model of psychological limiting factors for economic growth in Tanzania. Specifically, the study determined the psychological demographic characteristics, environmental factors, human behavioural factors, and economic factors those influence economic growth in Kagera and Mwanza. The cross-sectional survey research design was used. Data were collected by using a structured questionnaire that from a sample of 211 individuals in the Mwanza and Kagera regions in Tanzania. The multistage random sampling was used to sample districts of Nyamagana and Misungwi (Mwanza) and Muleba and Bukoba (Kagera). The data were linearly analysed by the analysis-weighted automatic linear modelling (AW-ALM), weighted least squares (WLS) stepwise regression, and partial least square–structural equation modelling (PLS-SEM). The finding results indicate that psychological demographic characteristics (Demo), psychological human behavioural factors (Hube), psychological economic factors (Ecofa) have a significant positive impact on economic growth positively. The psychological environmental factors (Envi) were found to have a U-shaped impact on economic growth. The study concluded that the economic growth in any production system is directly proportional to the psychological limiting factors of an individual (PSY). The general recommendation of this study is the adoption of psychological factors (non-economic variables) in economic planning. Keywords: Structural Modelling, Psychological Well-Being, Economic Growth, Subjective Well-Being.

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