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Services sector and economic growth in Botswana

Author

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  • Mpho Raboloko

    (Botswana Institute for Development Policy Analysis, Gaborone, Botswana)

Abstract

This paper examines factors affecting services sector growth and development in Botswana. Using annual time series data from 1980 to 2015, the study employs the autoregressive distributed lag (ARDL) estimation technique to identify the factors that contribute to the services sector growth. The results show that gross national expenditure, domestic credit to the private sector and gross fixed capital formation contribute positively to the growth of the services sector in Botswana. However, trade openness is found to negatively impact the growth of service sector. These results imply that in formulating service oriented policies, public policy should focus on factors that augment the growth and development of the services sector. It is also important for the banking sector to avail credit to the private as this is essential for the growth and development of the services sector.

Suggested Citation

  • Mpho Raboloko, 2019. "Services sector and economic growth in Botswana," E3 Journal of Business Management and Economics., E3 Journals, vol. 10(1), pages 001-008.
    • Handle: RePEc:etr:series:v:10:y:2019:i:1:p:001-008
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    Cited by:

    1. Mkadmi, Jamel Eddine & Bakari, Sayef & Msai, Achwak, 2021. "Assessing the Impact of Tax Policies on Economic Growth in Tunisia: New Empirical and Policy Analysis," MPRA Paper 109023, University Library of Munich, Germany.
    2. Bakari, Sayef, 2021. "Are Domestic Investments in Spain a Source of Economic Growth?," MPRA Paper 105526, University Library of Munich, Germany.

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