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Begin New Search Political Geography Africa Content Type Working Paper Publishing Institution Botswana Institute for Development Policy Analysis Author Goitseone Khanie Publication Year within 10 Years

1. Key Drivers of Industrial Growth: A Case Study of Botswana’s Manufacturing Sector

Author:
Johanne Motsatsi and Goitseone Khanie
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The paper examines the key determinants of industrial growth in Botswana, using manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition.
Topic:
Development, Economics, Economic Growth, Manufacturing, Economic Development, and Industrialization
Political Geography:
Africa and Botswana

2. Key Drivers of Industrial Growth A Case Study of Botswana’s Manufacturing Sector

Author:
Goitseone Khanie
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The paper examines the key determinants of industrial growth in Botswana, using manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition.
Topic:
Industrial Policy, Foreign Direct Investment, Economic Growth, Manufacturing, and Trade
Political Geography:
Africa and Botswana

3. Education and Labour Market Activity of Women in Botswana

Author:
Goitseone Khanie
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study examines the prevalence of female participation in labour market activities and investigates the role played by education in this participation. Using the 2015/16 Botswana Multi Topic Household Survey data and a multinomial logit model, the study found that women with tertiary education are more likely to be wage employed relative to self-employment, whereas those with lower to no education are more likely to be unemployed or out of the labour force. This is because higher education is normally considered a prerequisite for most wage jobs. It is therefore imperative for the government to continue educating women beyond secondary level as it will better equip them to participate in more meaningful labour market activities. On the other hand, there is need to stimulate the demand side of the labour market in order to accommodate the rising numbers of women with high levels of education. In order to encourage participation of women in high rewarding self-employment activities, there is need to intensify empowerment schemes that are largely oriented towards their self-employment.
Topic:
Education, Gender Issues, Labor Issues, Women, and Employment
Political Geography:
Africa and Botswana

4. Education and Labour Market Activity of Women in Botswana

Author:
Goitseone Khanie
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study examines the prevalence of female participation in labour market activities and investigates the role played by education in this participation. Using the 2015/16 Botswana Multi Topic Household Survey data and a multinomial logit model, the study found that women with tertiary education are more likely to be wage employed relative to self-employment, whereas those with lower to no education are more likely to be unemployed or out of the labour force. This is because higher education is normally considered a prerequisite for most wage jobs. It is therefore imperative for the government to continue educating women beyond secondary level as it will better equip them to participate in more meaningful labour market activities. On the other hand, there is need to stimulate the demand side of the labour market in order to accommodate the rising numbers of women with high levels of education. In order to encourage participation of women in high rewarding self-employment activities, there is need to intensify empowerment schemes that are largely oriented towards their self-employment.
Topic:
Education, Markets, Labor Issues, and Women
Political Geography:
Africa and Botswana

5. Impact of Internationalization on Firm Performance in Botswana

Author:
Goitseone Khanie
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Internationalization can affect a firm’s performance. This study determines how a firm’s engagement in international business activities affects its performance in Botswana. The study uses the Ordinary Least Squares method to regress firm performance over the degree of internationalization index (DOI), a composite variable of export intensity, import intensity and FDI intensity and control variables, size of the firm and the industry in which the firm operates. The results show that there is a positive relationship between firm performance and the degree of internationalization. This implies that among other growth strategies, internationalization can be considered as an important strategy to improve firm performance. The policy implication of these results is that efforts should be made to assist firms to internationalize their operations as a way of improving their performance.
Topic:
Economy, Business, Internationalization, and Firm Growth
Political Geography:
Africa and Botswana

6. Financing SMEs In Botswana: Factors Influencing Access to Credit

Author:
Goitseone Khanie
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study examines factors influencing access to credit by SMEs in Botswana. Using the 2010 World Bank Enterprise Survey, and employing logit model for analysis, we find that access to credit is influenced by gender, citizenship and experience of the entrepreneur; as well as firm-size, sector of business,sales and land ownership. Therefore, public policy must pay attention to the diversities of SMEs’ socio-economic characteristics as well as the business environment in which they operate when implementing finance assistance progammes. Measures to develop SMEs must be carefully focused, aiming at providing incentives for financial institutions to play an active role in SME financing. Government must formulate policies that will make finance institutions relax their requirements and lending procedures which tend to discourage borrowing. Similarly, public policy must be focused on strengthening the business acumen of SMEs through trainings and workshops, such that they are perceived attractive to financiers.
Topic:
Finance, Entrepreneurship, Business, Public Policy, and Credit
Political Geography:
Africa and Botswana

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