Economic Effects of Global Financial Crisis in Less Developed Countries”, A Case Study of Dar es Salaam Tanzania

This research intended to examine the economic effect of Global Financial and Economic Crisis (GFEC) toLess Developed Countries (LDCs) focusing on Tanzania, the city of Dar es salaam. The researcher concentrated on the economic effects of the global financial crisis to Tanzania. The research was designed in such a way that it enabled the researcher to grasp public perception on the financial crisis. On the basis of different views of authors, a conceptual framework was developed which determined the association between the impact of global financial and economic crisis on individuals, general business community and the country in general was supported by questionnaires. The study adopted both qualitative and quantitative research approaches and it represented an econometric analysis using statistical package for social sciences (SPSS). The determinants and repercussion were scrutinized by employing regression analysis, in which the researcher used a one sample t-test. The research gives a new insight into explaining the impact of global financial crisis on country’s economy.Descriptive statistics analysis and one sample t-test empirical study concluded that respondents were aware of the GFC, and its impact on individuals, and the general business community. The respondents were also aware and knowledgeable on the effects of GFC on individuals and the Tanzania’s economy.It was reported that the GFC shattered country’s economic stability, especially on tax revenues decrease and rising inflation. Further, it was reported that financial sector and industrial sector were seriously affected through international trade