African Food Engineering (Food Science/Technology) | 19 September 2004
Panel Data Estimation for Measuring Adoption Rates of Process-Control Systems in Tanzanian Industries,
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Abstract
The adoption of process-control systems in Tanzanian industries is crucial for improving product quality and reducing waste. Panel data estimation techniques were employed to analyse longitudinal data from Tanzanian industries between and . Two-way fixed effects models were utilised to account for sectoral and year-fixed effects. The estimated panel regression model revealed a significant positive relationship between investment in process-control systems and industry productivity, with an average adoption rate of 35% across all sectors. Process-control system investments have contributed positively to industrial productivity in Tanzania, highlighting the importance of sector-specific policies for effective implementation. Industry policymakers should prioritise funding for process-control systems as part of their development strategies and consider sectoral differences when designing interventions. The maintenance outcome was modelled as $Y<em>{it}=\beta</em>0+\beta<em>1X</em>{it}+u<em>i+\varepsilon</em>{it}$, with robustness checked using heteroskedasticity-consistent errors.