Economic Analysis of the Fisheries and Agriculture Sectors in Relation to Tanzania's Economic Development

Authors

  • Jackson Bulili Machibya
    Development Economics Institute of Rural Development and Regional Planning (IRDP) Mwanza Tanzania https://orcid.org/0000-0003-4656-148X

Keywords:

agriculture, fisheries, GDP, Tanzania, vector auto-regression (VAR)

Abstract

The fisheries and agriculture sectors play a pivotal role in Tanzania’s economic development, despite the challenges they face. This paper examines the financial contributions of these sectors, with its novelty lying in a comprehensive analysis of the causal relationships between agriculture and fisheries specific to Tanzania. Using a Vector Autoregression (VAR) approach spanning 1990 to 2021, the study addresses a gap in the existing literature, which often treats these aspects in isolation. The results indicate a statistically significant effect at the 0.05 level, where a one-unit increase in lagged fishing output significantly boosts GDP growth by approximately 1.7% due to enhanced current fishing performance, underscoring the importance of sustainable fishing practices. However, an over-reliance on past high yields can negatively impact GDP, highlighting the risks of overfishing. Conversely, the agriculture sector also makes positive contributions: a one-unit increase in lagged agricultural output is associated with a 0.3% increase in GDP. This result is likewise statistically significant at the 0.05 level. Nevertheless, potential diminishing returns from past yields emphasize the need for innovation and diversification in agricultural practices. Granger causality tests further underscore the interdependencies among the sectors, indicating that improvements in both fishing and agriculture significantly influence GDP growth. These findings suggest that policymakers should prioritize investments in both sectors by increasing funding for agricultural and fisheries research, promoting sustainable modern practices and technology adoption, and providing training for farmers and fishermen to improve productivity, enhance economic resilience, and strengthen food security. Furthermore, this paper contributes to the literature on sustainable economic development in developing countries by providing empirical evidence that highlights the critical role of both sustainable fishing practices and agricultural output in enhancing GDP growth. It reinforces the need for integrated policies that promote environmental sustainability alongside economic performance.

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Author Biography

Jackson Bulili Machibya, Development Economics Institute of Rural Development and Regional Planning (IRDP) Mwanza Tanzania

Mr. Jackson Bulili Machibya is currently an Assistant Lecturer, Researcher & Consultant at the Institute of Rural Planning (IRDP), Tanzania; Associate Consultant at two different firms JWD Farming Ltd and Kobe Konsult Ltd in Tanzania; and a PhD candidate in Economics at St. Augustine University of Tanzania (SAUT). Mr Machibya holds MA in Economics of Development from Erasmus University of Rotterdam in Netherlands (2014-2015), he also holds BSc in Agricultural Economics and Agribusiness from Sokoine University of Agriculture in Tanzania (2008-2011).  Mr Machibya has over eight (8) years’ experience in the community education sector, social projects, Agricultural sector, research, youth &Women training and consultancy works in Tanzania and Netherlands. Specialized knowledge has been gained in conducting various consultancies on agriculture value chains, including Post-harvest, Agro-inputs value chain, Agro-ecology, agribusiness and trade sectors in Tanzania. Areas of major experience include quantitative researches, assessment studies, feasibility studies, baseline studies, Project management and evaluation, Youth &Women groups training, Agricultural value chains, Agribusiness, marketing, Livelihoods, Development economics, Environmental economics, Policy analysis as well as business plan development. Crops of major experience include sunflower, horticultural crops, maize, rice, sorghum, cassava, legumes, and oil seeds. Mr. Machibya has a good enough international experience of several countries including Tanzania, India and Netherlands.

Research and Academic Interests

Main research interest areas; Agricultural value chains, Livestock value chain, Environmental economics, Rural economies, Agribusiness development, Entrepreneurship development and Development economics.

Publications and contacts

ORCID iD:

https://orcid.org/0000-0003-4656-148X

Google Scholar:

https://scholar.google.com/citations?hl=en&user=ZI3ZqfoAAAAJ

Email: bulili.jackson1@gmail.com

Mobile: +255 754338911

 

 

 

 

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Published

2026-01-11

How to Cite

Machibya, J. B. (2026). Economic Analysis of the Fisheries and Agriculture Sectors in Relation to Tanzania’s Economic Development . International Journal of Agricultural Social Economics and Rural Development (Ijaserd), 5(2), 63–71. https://doi.org/10.37149/ijaserd.v5i2.2498

Issue

Vol. 5 No. 2 (2025)

Section

Articles
Digital Object Identifier
https://doi.org/10.37149/ijaserd.v5i2.2498
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Copyright (c) 2025 Jackson Bulili Machibya

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