Abstract
The paper addresses the dynamics behind foreign investment policy changes in Tanzania during the last two and a half decades. It is argued that the demand for foreign capital by the state and the subsequent conduct of transnational corporations and some multilateral institutions have combined to constantly shape the nature and character of the national investment policies. The paper also documents some of TNCs' defensive responses in the wake of stringent national regulatory policies. This paper concludes that the failure to regulate and control new forms of capital flight is yet another indicator of the limited capacity of a periphery state.
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