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The Impact of Trading with China on Botswana's Economy

Author

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  • Kedibonye Sekakela

    (Botswana Institute for Development Policy Analysis)

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 industries.

Suggested Citation

  • Kedibonye Sekakela, 2014. "The Impact of Trading with China on Botswana's Economy," Working Papers 40, Botswana Institute for Development Policy Analysis.
    • Handle: RePEc:bid:wpaper:40
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    File URL: http://knowledge.bidpa.bw:8080/xmlui/handle/123456789/71
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    Cited by:

    1. Tebogo B. Seleka, 2020. "Targetting Effectiveness of Social Transfer Programs in Botswana:Means-tested versus Categorical and Self-selected instruments," Working Papers 72, Botswana Institute for Development Policy Analysis.

    More about this item

    Keywords

    Botswana; China; Bilateral trade; domestic market;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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