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Abstract
Merchandise exports are an important macroeconomic variable that determines the economic
growth in Tanzania. International trade is among the economic activities that influence
economic growth. The present paper analyzes the trend and forecasts merchandise exports
using time series data from 1963 to 2022 in Tanzania. Trend analysis and Box-Jenkins using
ARIMA (1,1,1) models were used to determine the trend and forecasting for merchandise
exports, respectively. Augment Dicker Fuller (ADF) test, and correlogram were used to
measure the unit root. Again, Q-statistic was utilized to determine if the residuals are white
noise. Empirical results show that merchandise export trends are improving over time, and
forecast results reveal an increase in the future for Tanzania. Forecasting was done after all
the conditions were met, that is, residuals are white noise and the ARIMA process covariance
was stationary, all AR roots lie inside the unit circle and the ARMA process is invertible, and
all MA roots lie inside the unit circle. Based on the trend and forecasting results, the
government has to pay attention to the macroeconomic policies and maintain economic
stability to prevent the trend and merchandise exports from declining in the future.
The main focus should be given to the international trade policy and monetary policy as the
main economic drivers that influence the trade activities within and outside the country.
Export incentives should not be ignored because exchange rate stability is among the
essential variables that determine international trade.
Keywords
Merchandise exports
Trend analysis
Forecasting
ARIMA models
and Box- Jenkins
Citation
Nasania, J. (2026), "Trend Analysis and Forecasting of Merchandise Exports in Tanzania: Autoregressive Integrated Moving Average (ARIMA) Analysis", The African Journal of Finance and Management, Volume 16 Issue 1 , 0856-6372.
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