Determinants of clove exports in Zanzibar : implications for policy
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Date
2022-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
United Nations University World Institute for Development Economic Research
Abstract
This paper analyses factors for the declining trend in clove exports in Zanzibar using
time series data that were collected between 1980 and 2020 and analysed using the vector error
correction model, complemented with qualitative analysis. Clove production, producer price, world
price, gross domestic product, and the exchange rate showed positive statistically significant
impacts in the long run at the one per cent level, while foreign direct investment, population
growth rate, rainfall, and gross capital formation showed significant negative association. Inflation
had no impact. Some factors affected clove exports indirectly through production. Extension
services were poor while the local price of cloves was low and not stable. We can conclude that
clove exports were determined by many interlinked factors. We recommend an integrated policy
approach that takes on board, comprehensively, all determining factors to improve and sustain clove
exports.
Description
Working paper
Keywords
Development Economics, Cloves, Exports, Vector error correction model, Zanzibar
Citation
Kabote, S.J and Tunguhole, J. (2022). Determinants of clove exports: implications for policy. WIDER working paper 2022/54