The Impact of Trading with China on Botswana's Economy

Kedibonye Sekakela ()
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Kedibonye Sekakela: Botswana Institute for Development Policy Analysis

No 40, Working Papers from Botswana Institute for Development Policy Analysis

Abstract: The objective of this paper is to examine the impact of trading with China on Botswana’s domestic and third markets. The paper also assesses the structure and magnitude of Botswana-China bilateral trade. Botswana’s trade balance with China has been widening over the past decade, with Botswana mainly exporting primary products and importing intermediate and capital goods, which are mainly used as inputs in the development of infrastructure in the country. The increased import penetration from China is associated with Botswana’s reduced total manufacturing output. China’s Textile, Clothing and Footwear (TCF) exports gained market share from Botswana’s TCF exports in the third markets, that is South Africa. There is a need to consider ways of enhancing Botswana’s export competitiveness and there are also lessons to be learnt from China in relation to enhancing productivity in the TCF and other exporting industries.

Keywords: Botswana; China; Bilateral trade; domestic market (search for similar items in EconPapers)
JEL-codes: E32 R10 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2014-09
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Citations: View citations in EconPapers (1)

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