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

Author

Listed:
  • André C. Jordaan

    () (Investment and Trade Policy Centre, University of Pretoria)

  • Joel Hinaunye Eita

    () (Investment and Trade Policy Centre, University of Pretoria)

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.

Suggested Citation

  • André C. Jordaan & Joel Hinaunye Eita, 2007. "Testing the Export-Led Growth Hypothesis for Botswana: A Causality Analysis," Working Papers 200720, University of Pretoria, Department of Economics.
  • Handle: RePEc:pre:wpaper:200720
    as

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    Cited by:

    1. Ahdi N. Ajmi & Goodness C. Aye & Mehmet Balcilar & Rangan Gupta, 2015. "Causality between exports and economic growth in South Africa: evidence from linear and nonlinear tests," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(2), pages 163-181, April-Jun.

    More about this item

    Keywords

    Africa; Botswana; Exports; Granger Causality; Growth; Cointegration;

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