Economic Development Through Strategic FDI and Technology Adoption: An Econometric Analysis for Sustainable Revenue Growth in Tanzania

Abstract

This study proposes a robust strategy for bolstering the country’s economic development. Leveraging an econometric approach model, the research incorporates additional factors and extrapolates predictions based on historical data. By combining qualitative and secondary data, the study ensures a comprehensive analysis of the model through the error term and the ability to use mathematical treatments to determine future predictions based on historical data. The findings show that a lack of belonging, poor customer care, and the cost factor of FDI significantly affect revenue collection. Adopting new technology requires thorough preparation to avoid generating less revenue than expected. The study recommends that the government establish appropriate infrastructures for long-term strategy support for new technology adoption. Failure to do so may result in a waste of resources. Government policy and strategy significantly impact TRA performance. The URT government should adopt policies from other developed countries or modify them to suit local needs. The findings suggest serious corrective measures to prevent tax evasion through bribery or tampering with revenue collection infrastructures.