Influence of Conditional Factors on the Financial Liberalization and Economic Growth Nexus in Tanzania

Abstract The current study analyzes the influence of conditional factors on relationship between financial liberalization and economic growth in Tanzania. motivation is based inability developing countries to attain targeted their economies divided findings conclusions existing studies topic. employed time series data spanning from 1970 2017 examine Data was collected Bank Tanzania United Nations Conference Trade Development. Augmented Dicky-Fuller Phillips-Perron were used for unit root tests, Bounds Approach co-integration PROCESS Macro estimation. contributes literature by analyzing reveals that out four conditioning (financial development, trade openness, government size, inflation), only size (captured expenditure) found positive statistically significant. imply enhances Tanzania, subject level size. concludes lacks support a sufficient number macroeconomic spurring This scenario might contribute sluggish economy which below target. Therefore, suggests review policy factor so as enhance more