Panel Data Estimation for Measuring Adoption Rates of Process-Control Systems in Tanzanian Industries,

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 $Y_{it}=\beta_0+\beta_1X_{it}+u_i+\varepsilon_{it}$, with robustness checked using heteroskedasticity-consistent errors.