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Testing the Export-Led Growth Hypothesis for Botswana: A Causality Analysis

Andre Jordaan and Joel Eita ()

No 200720, Working Papers from University of Pretoria, Department of Economics

Abstract: This paper investigates the causal relationship between export and economic growth for Botswana, using quarterly data for the period 1995.1-2005.4. It uses two measures of economic growth namely, GDP and GDP excluding export. When GDP is used as a proxy for economic growth, the investigation reveals that GDP causes export. However, when using GDP excluding export as a proxy for economic growth, the results show that there is bi-directional causality between export and economic growth. The results suggest that Botswana can promote its economic growth by exporting more products. The results also suggest that export in Botswana can be raised by increasing economic growth.

Keywords: Africa; Botswana; Exports; Granger Causality; Growth; Cointegration (search for similar items in EconPapers)
Pages: 19 pages
Date: 2007-10
New Economics Papers: this item is included in nep-afr and nep-int
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