Natural Gas Consumption and Economic Growth in Tanzania

After crude oil, natural gas has become one of the most important energy sources in the world. For a long time, Tanzania has been exploring for natural gas. The first gas discovering was in 1974 in Songo Songo island southern part of Tanzania and the production started in 2004. It is always believed that gas consumption leads to the growth and development in the economics of that area. The uses of gas in homes, industries increase the living standard of the people. This study concentrates on finding the relationship between natural gas consumption and economic growth in Tanzania by using autoregressive distributed lag model, with the data from TPDC, and World Bank from 1995 to 2018. Economic growth is mainly determined by GDP, FDI, increase of population in the urban and inflation rate. The result of this study indicates that there is no long-run relationship between gas consumption and economic growth. On top of that, causality is only found in Gas consumption to FDI.