Russia And Tanzania: Bilateral Trade Relation Analysis

Abstract

The article analyzes the development of trade relations between Russia and Tanzania in 2010-2017, defining the Tanzania’s contribution to Russia’s foreign trade, the dynamics and commodity structure of mutual export and import of the two countries, the degree of intensity of trade relations, factors hindering the development of trade, and perspective directions of diversification of bilateral trade and economic relations. The assessment of promising sectors of the economy for the development of mutually beneficial trade with Russia is carried out using the Tanzania Social Accounting Matrix, according to which export and import-oriented sectors and its subsectors were identified, including the analysis of the main factors of production contributing to the formation of their gross value added. An insufficient level of capital utilization in the industrial sector of the Tanzanian economy explains the low degree of industrialization of the leading branches of industry and high share of imports in trade operations. The commodity structure of Russian-Tanzanian exports and imports by types and certain categories of priority goods, as well as product groups, which characterize the highest rates of growth and decrease in the trade turnover between the countries in 2015-2017 are revealed. According to the results of the analysis, there is a mutually beneficial trade and economic strategic cooperation between Russia and Tanzania, which involves optimizing the commodity-specific structure of trade, increasing Russia’s investment activity in the extractive industries, chemical industry, agriculture, engineering, etc., as well as in the field of educational, transport, tourist and other services in Tanzania