Abstract:
The objective of this paper is to examine the impact of trading with China on Botswana’s
domestic and third markets. The paper also assesses the structure and magnitude of
Botswana-China bilateral trade. Botswana’s trade balance with China has been widening
over the past decade, with Botswana mainly exporting primary products and importing
intermediate and capital goods, which are mainly used as inputs in the development of
infrastructure in the country. The increased import penetration from China is associated
with Botswana’s reduced total manufacturing output. China’s Textile, Clothing and
Footwear (TCF) exports gained market share from Botswana’s TCF exports in the third
markets, that is South Africa. There is a need to consider ways of enhancing Botswana’s
export competitiveness and there are also lessons to be learnt from China in relation to
enhancing productivity in the TCF and other exporting ind
