Greener Journal of Economics and Accountancy

Greener Journal of  Economics and Accountancy Vol. 2 (4), pp. 101-111, November 2013

 ISSN: 2354-2357 © 2011 Greener Journals

Research Paper

Manuscript Number: 101713909

 

An Investigation of Sectoral Comparative Advantage of Botswana

 

Chingarande Anna*¹, Mzumara Macleans² &

Karambakuwa Roseline³

 

^{1, 2, 3}Department of Economics, Bindura University of Science Education, P/Bag 1020, Bindura, Zimbabwe.

 

Email: ²macmzumara @ yahoo.com, ³rkarambakuwa @ gmail.com

 

*Corresponding Author’s Email: apbchings2005 @ yahoo.com

Abstract:

The paper investigated sectoral comparative advantage of Botswana. Machinery/electric sector tops inter-sectoral comparative advantage in Botswana. It is followed by the textiles sector. The least in terms of comparative advantage is foot wear/head gear sector then followed by raw hides, skins leather and furs sector. The sector which tops in Botswana in comparative advantage, is not necessarily the one that tops in export value. Diamonds which dominate Botswana’s exports fall in the stone/glass sector and the sector possess less comparative advantage than other sectors ahead of it. It is recommended that Botswana should be promoting other products also other than diamonds in the international markets. That Botswana enacts a focused export promotion strategy on sectors which possess comparative advantage. Botswana should continue providing enabling environment that can lead to inflow of foreign direct investment through transnational corporations with technology that can improve sectoral comparative advantage.

Keywords: Sectoral comparative advantage, international trade, exports, Botswana.

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