Exploring the Nexus Between Governance Quality and Export Performance: Evidence from Tanzania in the EAC
Abstract
This study investigates the relationship between Tanzania's governance quality and the performance of its exports to the EAC members. It is grounded in institution theory and transaction economics theory. Using quantitative panel data from Worldwide Governance Indicators and Tanzania's export performance from 1996 to 2023, the Poisson Pseudo-Maximum Likelihood (PPML) estimation method was used for the analysis. The results show that only political stability and regulatory quality are statistically significant and positively affect Tanzania's export performance among the six WGI indices. This implies an improvement in Tanzania's political stability and regulatory quality, substantially improves its export to EAC member states. Thus, policymakers should maintain a stable and predictable political system and streamline bureaucratic procedures to ensure immediate and tangible results in Tanzania's export volume growth.
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