E3 Journal of Business Management and Economics
E3 Journal of Business Management and Economics Vol. 10 (1) pp. 001-008, August 2019; © E3 Journals; ISSN 2141-7482
Services sector and economic growth in Botswana
Mpho Raboloko1 *1 Botswana Institute for Development Policy Analysis, Gaborone, Botswana
*Corresponding Author E-mail: a.bw
Accepted 21 April 2019
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 sector as this is essential for the growth and development of the services sector.
Keywords: Service Sector, Co-integration, Error Correction Model, ARDL
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