Abstract
This paper investigates the direction of causality between economic growth and credit market development in Tanzania for the period 2010–2017 using annual data and applying the statistical method under SPSS program. Linear regression and correlation methods were both used to analyse the relationship between dependent variable and independent variables and obtaining necessary coefficients for determining the regression equation. Findings of the study suggest that there is an opposite correlation between the economic growth rate, total credit value in million USD and average exchange rate (when one variable increases, the other decreases). Meanwhile, a positive correlation between inflation and economic growth has been observed, meaning that the inflation rates have contributed positively to economic growth of Tanzania. The study also observed the influence of inflation in economic growth and hence calls for effective control of inflation equation.
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