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Impact of Internationalization on Firm Performance in Botswana

Author

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  • Goitseone Khanie

    (Botswana Institute for Development Policy Analysis)

Abstract

Internationalization can affect a firm’s performance. This study determines how a firm’s engagement in international business activities affects its performance in Botswana. The study uses the Ordinary Least Squares method to regress firm performance over the degree of internationalization index (DOI), a composite variable of export intensity, import intensity and FDI intensity and control variables, size of the firm and the industry in which the firm operates. The results show that there is a positive relationship between firm performance and the degree of internationalization. This implies that among other growth strategies, internationalization can be considered as an important strategy to improve firm performance. The policy implication of these results is that efforts should be made to assist firms to internationalize their operations as a way of improving their performance.

Suggested Citation

  • Goitseone Khanie, 2018. "Impact of Internationalization on Firm Performance in Botswana," Working Papers 58, Botswana Institute for Development Policy Analysis.
    • Handle: RePEc:bid:wpaper:58
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    File URL: http://knowledge.bidpa.bw:8080/xmlui/handle/123456789/78
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    Cited by:

    1. Tshepiso Gaetsewe, 2020. "Characteristics of Firms in Botswana's Informal Economy," Working Papers 74, Botswana Institute for Development Policy Analysis.
    2. 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.

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