GTAP Resources: Resource Display
| GTAP Resource #7570 |
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"The Role of Services in Global Value Chains and the Trajectory of Structural Transformation in Tanzania" by Maskaeva, Asiya, Mgeni Msafiri and Andrea El Meligi Abstract This paper aims to provide an analysis of Tanzania’s position within the integrated global economy, particularly through its participation in Global Value Chains (GVCs), focusing on the services sector. In recent years, data shows a consistent increase in the share of services in Tanzania’s GDP, with sub-sectors such as transport and communication, finance, and insurance among the fastest-growing. However, despite the expansion of the domestic services sector, the share of trade in services as a proportion of GDP declined from 13% in 2011 to 9.5% in 2022, highlighting a disconnect between domestic services growth and international trade integration. This study integrates traditional intersectoral linkage analysis - using the 2015 and 2019 input-output tables - with an assessment of the role of services trade in Global Value Chains (GVCs), drawing on data from the GTAP-Africa database. Additionally, the study utilises trade-in-value-added (TiVA) data to explore patterns of dynamic structural change and the evolving nature of deindustrialisation in Tanzania. The results indicate that the Tanzanian economy is highly dependent on the services sector, which accounts for approximately 43% of total output. Regarding forward linkages, the economy relies significantly on transport and trade-related services to support other sectors. Furthermore, similar to the primary industry, the services sector shows a high share of domestic content in its exports, with nearly 80% originating from within the country. This suggests a strong dependence on local labour and domestic inputs, contributing to a higher domestic value added to Tanzania’s export composition. The analysis reveals that domestic services contribute an average of 27.9% to Tanzania's total exports, while foreign services account for 13.7%. This indicates that Tanzania’s exports are primarily driven by natural resource-based and agricultural products, which tend to have relatively high domestic value added. |
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- GTAP Data Base and extensions - Other data bases and data issues - Economic development - Trade in services - Africa (East) |
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Public Access  Paper (902.0 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
