Abstract:

The paper investigated the relevance of transport infrastructure, foreign direct investment, and economic growth in Tanzania. Employing structural equation modeling (SEM), we observed transport infrastructure is correlated with both foreign direct investment and economic growth, while foreign direct investment is not associated with economic growth. This result implies the correlation between transport infrastructure and economic growth and transport infrastructure and foreign direct investment. Furthermore, the unidirectional rapport between foreign direct investment and economic growth was determined. Moreover, we suggested that for Tanzania to captivate more foreign direct investment and promote economic growth, the enormous development of transport infrastructure is required. Foreign direct investment influences the advancement of both transport infrastructure and economic growth. Likewise, an advanced economy promotes transport infrastructure and captivate extra foreign direct investment in Tanzania.