Abstract:
Studies which have been carried out on industrial development in underdeveloped countries have grown
that usually the aims and objectives of industrialization through import substitution do not conform to
the outcome of the strategy. Normally, import ssubstitution is designed to ssolve balance of payments
problems including other problems of econmic underdevelopment. Yet, it has been claimed that the
strategy ends up in bringing more balance of payments problems and economic stagnation. This paper
therefore tries to. investigate on the problems of import substitution industrialization in Tanzania based
on quantitative data from some selected consumer and intermediate goods. Industries. The study was
guided under the hypothesis -that import substitution industrialization has not successfully solved
balance of payments problems.
