The Influence of Trade Facilitation on Export Diversification in Tanzania

Abstract

This paper examines the relationship between trade facilitation and export diversification in Tanzania. Specifically, it attempts to ascertain the role of infrastructure in facilitating export diversification. The study uses trade data for Tanzania’s export with its trading partners for the period from 2008 to 2017. The gravity model is used for data analysis. Findings reveal that the quality of airport infrastructures positively influences export diversification in Tanzania while other infrastructures had no influence on export diversification. The paper concludes that reliable infrastructure specifically airport infrastructures reduces trade costs, improves competitiveness, and increases export diversification in Tanzania and; thus recommends continual investment towards airport infrastructure development and maintenance.