The influence of trade policy on the relationship between capital productivity and the growth of cross-border trade of maize business at Tunduma, Songwe region
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Keywords

Capital productivity, maize business growth and cross-border trade policy

Abstract

Capital productivity was one of the factors influencing the growth of the cross-border trade of maize,this study used trade policy as a moderating factor. The study examined the influence of capital productivity on cross-border trade growth of maize businesses and the influence of the moderating role of trade policies on growth of cross-border trade of maize business at the Tunduma border. Data was gathered from 311 respondents using closed-ended questionnaires and analysed using PLS-SEM system. Questionnaires were created based on labour productivity, capital productivity and opportunity cost as independent variables with maize business growth as the dependent variable and trade policy as a moderating variable. The study discussed capital productivity as one of the important factors, connected to its significant effect on maize business growth. Tanzania has a comparative advantage over Zambia in producing maize and the primary data revealed an increase of revenue and profit resulted from production increase. The findings informed policy makers, agribusiness, and cross-border stakeholders to strategize in enhancing cross-border maize trade by improving the productivity of cross-border maize business and optimizing policy frameworks. The results contributed to the cross-border trade operations knowledge and opened room for further studies related to cross-border trade.

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