Browsing by Author "Tchana, Fulbert Tchana"

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    Essays on monetary policy, institutions and terms of trade shocks in emerging market economies
    (2012) Hove, Seedwell; Mama, Albert Touna; Tchana, Fulbert Tchana
    This thesis focuses on two important features of emerging market economies: institutional weaknesses and the exposure to commodity terms of trade shocks and how they shape the macroeconomic dynamics and the conduct of monetary policy. These issues are discussed in three essays. The first essay empirically evaluates the role of institutional structures in inflation targeting in emerging market economies (EMEs). The second essay theoretically investigates the appropriate monetary policy responses to commodity terms of trade shocks using a multi-sector New Keynesian dynamic stochastic general equilibrium (DSGE) model. Finally, the third essay empirically analyses the responses of different monetary policy regimes to commodity terms of trade shocks in emerging market economies.
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    Foreign direct investment and growth in Tanzania : roles of the domestic financial system and human capital
    (2009) Mboya, Phillip G; Tchana, Fulbert Tchana
    Recent theoretical and empirical literature suggests various links through which foreign direct investments (FDI) exert positive impact on economic growth. It is argued that FDI will have a positive effect on domestic economic growth under certain circumstances. Some proponents of FDI and growth have emphasized on the role of the level of technological advancement and human capital while others have focused on the level of the development of the domestic financial system. In the former case, the literature suggests that better trained people will easily acquire technologies introduced with FDI inflows and spread it to the rest of the economy while in the later case, it suggests that a well developed domestic financial system enhances efficient allocation of financial resources and therefore it is a pre-condition for FDI to positively contribute to economic growth. In this paper, both propositions are investigated. The paper examines whether Tanzania has sufficiently developed its financial system and invested in human capital adequately to enhance its FDI absorptive capacity and let it contribute positively to economic growth for the period 1970 -2006. The study uses bounds testing approach of cointegration within the framework of Autoregressive Distributed Lag (ARDL) developed by Peresan et al. (2001) also used by Fosu and Frimpong (2006); and Khan (2007). An ARDL estimation technique follows three main steps. After testing for unit roots, an Ordinary Least Square (OLS) model is estimated in order to test for the existence of long-run relationships between the variables by conducting F-test for joint significance of the coefficients of lagged levels of variables.
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    Impact of debt relief on fiscal allocation to social priority sectors and response of social indicators in the HIPCs : a case study of Tanzania
    (2009) Mollel, Lekinyi N; Tchana, Fulbert Tchana
    External debt burden has been viewed as one of the key impediments to economic growth and a cause of widespread poverty in the Heavily lndebted Poor Countries (HIPCs). To join efforts of the HIPCs in ï¬ ghting poverty, the international donor community granted substantial debt relief through different initiatives including among others; unilateral bilateral agreements, the Paris Club Agreements, debt buyback schemes, the I-IIPC Initiative and its successor, the Multilateral Debt Relief Initiative (MDRI). All these initiatives were expected to increase public spending in social priority sectors and ultimately reduce poverty incidence in the HIPC-s. This study assesses, firstly whether the debt relief has helped to increase Government spending on education and health sectors in Tanzania and, secondly, whether increased ï¬ scal spending on the sectors has translated into improvement in the primary and secondary school enrollments and life expectancy. A system of structural equations is estimated within a Vector Autoregressive (VAR) framework. The ï¬ ndings suggest increases in Government expenditure on education and health through debt relief. Primary and secondary school enrolments improve with increased Government spending on education and health. Institutional quality is found to be signiï¬ cant in determining education spending and educational indicators. However, life expectancy was not found to respond to public Spending, possibly due to the inherent gestation period in health related indicators and quality of data used. Nevertheless, the ï¬ ndings, though based on short-run series, give an insight that in the long-run, the cumulative effects of debt relief can contribute towards successes in the ï¬ ght against poverty and ultimately attainment of the Millennium Development Goals (MDGS).