Key Drivers of Industrial Growth

Show simple item record Khanie, Goitseone 2021-09-13T09:30:53Z 2021-09-13T09:30:53Z 2020
dc.identifier.isbn 99912 65 81 3
dc.description The series comprises of papers which reflect work in progress, which may be of interest to researchers and policy makers, or of a public education character. Working papers may already have been published elsewhere or may appear in other publications. en_US
dc.description.abstract manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition. en_US
dc.description.sponsorship BIDPA en_US
dc.language.iso en en_US
dc.publisher Botswana Institute for Development Policy Analysis en_US
dc.relation.ispartofseries Working Paper;73
dc.subject Industrialisation; Industrial growth; Manufactoring sector; Botswana en_US
dc.title Key Drivers of Industrial Growth en_US
dc.title.alternative A case study of Botswana's manufacturing sector en_US
dc.type Working Paper en_US

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