The Contribution of Industrial Policies to the Economic Growth of Tanzania

In this paper, I investigate the contribution of Industrial policies to the Economic growth of Tanzania. In order to test the contribution of Industrial Policies to the Economic growth of Tanzania specifically Macro Economic Variables, I used Simple Regression Model.Tanzania has started to implement the Industrial Policies in the year of 1996. From the Word Bank Available DataBase the Contribution of Industrial Policies to the Tanzania Economic growth analyzed from the period of 1996 to 2015. The findings of the present study are quite interesting. Results reveal that Economic Openness has Positive relationship with GDP, which means Industrial Policies had Positive contribution to Tanzania GDP. While, results shows Economic openness and Industrial GDP has Negative relationship, which means Industrial Policies had no contribution to Tanzania Industrial GDP. Industrial policy should be a state of mind, create a climate of cooperation between government and the private sector, a discovery process, generate positive spillovers to other sectors and not be based on purely financial incentives, not picking winners.