International Journal of Business and Economics Research
Volume 8, Issue 5, October 2019, Pages: 257-262
Received: Jun. 11, 2019;
Accepted: Jul. 16, 2019;
Published: Aug. 5, 2019
Views 443 Downloads 169
Kefilwe Sebolao, Department of Economics, University of Botswana, Gaborone, Botswana
Lesego Sekwati, Department of Economics, University of Botswana, Gaborone, Botswana
Malebogo Bakwena, Department of Economics, University of Botswana, Gaborone, Botswana
The paper examines determinants of export decisions and export intensity by manufacturing firms in Botswana, a developing country in Sub-Saharan Africa. Manufacturing, is one of several sectors through which the government seeks to pursue the all-important diversification of the economy. Botswana’s economy is heavily dependent on a diamond sector that in recent years has been declining, and is expected to decline further as diamond resources dwindle. Manufacturing is one of the sectors expected to play an important role in driving the expansion of the economic base. This paper contributes to the debate on policies to promote the growth of the sector. The paper examines factors likely to influence firms decisions to participate in global markets. Global markets provide a higher potential for firms to grow and make a meaningful impact in the economy. The paper applies Probit and Tobit models to firm level data to identify determinants of the decision to export and analyse export intensity respectively. The results of the Probit model show that firm age, firm size, human capital and access to finance increase rge likelihood of entering the export markets. On export intensity, results from the Tobit model show that firm size, human capital and firm location matter. The results suggest that economic gains can be expected from improving access and quality of education. Access to finance, and sea ports. Sector specific policies are also likely to benefit firms in textile and garments and chemicals.
Determinants of Export Decisions by Manufacturing Firms in Botswana, International Journal of Business and Economics Research.
Vol. 8, No. 5,
2019, pp. 257-262.
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