Muchanyuri and Mzumara
Greener Journal of Business and Management Studies Vol. 3 (8), pp. 361-368, October 2013
ISSN: 2276-7827 © 2011 Greener Journals
Manuscript Number: 102913937
Inter-Sectoral Comparative Advantage of Tanzania and Impact on International Purchasing
1*Bongani Muchanyuri and Macleans Mzumara2
1,2Department of Economics, Bindura University of Science Education, P/Bag 1020, Bindura, Zimbabwe.
Email: 2macmzumara @ yahoo.com
*Corresponding Author’s Email: bmuchanyuri @ gmail.com
The authors have analyzed inter-sectoral comparative advantage of Tanzania and impact on international purchasing. Comparative advantage fairly exists in some sectors in Tanzania. Comparative disadvantage also exists mainly in the foot wear/head gear and transportation sectors. The sectors with high numbers of products have positive impact on international purchasing as they can be a competitive source to procure from. As the case may be, there is still a room in Tanzania to improve on competitiveness. It is recommended that Tanzania comes up with sectoral policies that can enhance competitiveness further. It is also recommended that a more focused export promotion strategy be promoted. Attracting foreign direct investment especially trans-national corporations can assist Tanzania to improve on its competitive advantage mainly through technology transfer.
Keywords: Comparative advantage, international trade, international purchasing, Tanzania.