Testing the Export-Led Growth Hypothesis for Botswana: A Causality Analysis
AbstractThis 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.
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Bibliographic InfoPaper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200720.
Length: 19 pages
Date of creation: Oct 2007
Date of revision:
Africa; Botswana; Exports; Granger Causality; Growth; Cointegration;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2007-11-17 (Africa)
- NEP-ALL-2007-11-17 (All new papers)
- NEP-INT-2007-11-17 (International Trade)
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- Ahdi N. Ajmi & Goodness C. Aye & Mehmet Balcilar & Rangan Gupta, 2013. "Causality between Exports and Economic Growth in South Africa: Evidence from Linear and Nonlinear Tests," Working Papers 201339, University of Pretoria, Department of Economics.
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