INTRODUCTION AND BACKGROUND INFORMATION
1.0 Background of the Study
Marketing plays a vital role in economic growth in the present global world. It ensures the planned economic growth in the developing economy where the scarcity of goods, services, ideas and excessive unemployment, thereby marketing efforts are needed for mobilization of economic resources for additional production of ideas, goods and services resulting in greater employment. Marketing stimulates the aggregate demand thereby enlarges the size of market. Marketing in basic industries, agriculture, mining and plantation industries helps in distribution of output without which there is no possibility of mobilization of goods and services which is the key point for economic growth. These industries are the back bone of economic growth. It also accelerates the process of monetizing the economy which in turn facilitates the transfer of investible resources. It helps in discovery of entrepreneurial talent. Intermediate industrial goods and Semi-industrial products etc. essentially marketed for industrial purpose in order to develop the industrial sector with a view to economic growth. Today the trend of ICT development is gaining larger influence over countries’ development and growth. It would not be surprising to see the elements that evolved from the developments of ICT (such as e-commerce, e-marketing, e-business, and e-learning) have increasingly provided support toward enhancing countries’ growth and development, especially in highly sophisticated abstract. As the trend of ICT development is gaining larger influence over countries’ development and growth, e-commerce plays an important role in enhancing the growth of several developed and developing economies over the 21st century. This chapter aims to build the analytical base to support the importance of the development of e-commerce by investigating the role and contribution of e-commerce to economic growth and development. The chapter first investigates past contributions of e-commerce to economic growth in developed countries. Second, past research findings and frameworks are utilized to investigate the contribution of e-commerce toward economic growth, focusing on the case of e-commerce in Tanzania. The study found that e-commerce plays an important role in enhancing the economic growth of Tanzania. Two important findings supported the growth of e-commerce. First is the increase in sales generated by the use of e-commerce. Second, e-commerce induces the productivity development of firms through higher competition and innovation. E-Commerce Contribution to Economic Growth: The Case of Tanzania industries. The introduction of e-commerce and e-business seems to create a tremendous contribution to the growth of many developed nations and is continuing its increasing impact on the developments of many developing economies over the 21st century. Some recent literature pointed out the increasing contribution of e-commerce toward economic development in several developed countries such as the United States, Canada, Australia, and the United Kingdom (Adam, Mulye,Deans &Palihawadana,2002). It was found that from 1997 to 2000, the value of sales from e-commerce increased from less than $20 billion to nearly $300 billion. Moreover, some researchers expect that the contribution of e-commerce will grow faster than the contribution from traditional sales. Especially in the United States in the year 2000, e-commerce represented more than 80% of the worldwide e-commerce that took place, having a significant effect on the large economic sectors such as communications, finance, and retail where it accounts for 15% of the global gross domestic product (GDP).1 In Tanzania, the idea of e-commerce utilized in business sectors and other electronic support systems in businesses have just started to gain attention from several government and private sectors during the past few years.2 Major support went to the promotion...
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