The Impact of Government Policy on Macroeconomic Variables: A Case Study of Private Investment in Tanzania

"The major hypothesis of the paper is that private sector investment is necessary if economic growth is to be accelerated. However, in order to stimulate such investments appropriate monetory, fiscal and exchange rate policies have to be formulated and implemented, along with provision of socioeconomic infrastructure. In studying private investment in Tanzania it is thus assumed that certain variables will be the major determinants. These are government expenditure on investment, the exchange rate, GDP growth and capital inflows. These variables were incorporated in modelling private investment and their linear and non-linear relationships were analysed."