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31. Impacts of Access to ICTs on Employment Status in Botswana

Author:
Masedi K. Tshukudu
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
It is clear that technology has brought about significant changes in the livelihoods of people, creating new forms of employment and advancing the traditional forms of employment for individuals. Many countries continue to invest in Information and Communication Technologies (ICTs) with the view to tackling some of the economic challenges such as unemployment. Botswana like other African countries has made annual budgetary allocations towards ICT Infrastructure. Despite, the Government’s efforts to invest and improve access to ICT, the country still faces a high unemployment rate, particularly for the youth. This study therefore, investigates the impact that access to ICTs has on the employment of individuals in Botswana. In order to provide a detailed analysis of the impact of ICTs on employment we apply a probit model for binary choice responses to being employed or not being employed, using the data from the 2014 Botswana Household Access and Individual use of Information Communication Technology Survey carried out by the Statistics Botswana. The empirical results provide evidence that access to ICTs collectively has a positive impact on employment in Botswana. However, disaggregating the ICTs forms presents slightly different results, e-skill training and access to the internet in Botswana are not significant in explaining an individual’s employment status, this may be associated with low uptake of internet and ICTs skills by individuals in Botswana. The policy message from this study is that there is a need for aggressive implementation of collective ICT. [In addition, there is need to improve collective ICTs infrastructure to create more employment].
Topic:
Science and Technology, Communications, Infrastructure, and Employment
Political Geography:
Africa and Botswana

32. The Impact of Business Regulatory Quality on Private Sector Investment in Botswana

Author:
Kedibonye Sekakela
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
A market-friendly regulatory environment is key for private sector investment. In this paper, we examine the impact of business regulatory quality on private sector investment in Botswana. The paper finds that the business regulatory environment stimulates private sector investment in the long term and this phenomenon occurs when the quality of bureaucracy improves, among other factors. Other critical factors affecting private sector investment examined in this paper include; corporate credit, output and public infrastructure investment. Private sector investment responds positively to increases in corporate credit in the short term but not responsive in the long term. Economic activities support private sector investment positively but weak. On the other hand, public infrastructure investment crowds in(out) investment in the short and long term respectively. Policy wise, Botswana should further deepen its efforts towards creating a market-friendly regulatory environment and also consider how business regulatory quality interact with other policy variables for better investment and growth outcomes.
Topic:
Regulation, Business, Investment, and Private Sector
Political Geography:
Africa and Botswana

33. The Impact of Infrastructure on Economic Growth in Botswana

Author:
Mpho Raboloko
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study determines the impact of infrastructure on economic growth in Botswana. The study employs an Autoregressive Distributed Lag (ARDL) estimation technique to determine how infrastructure affects economic growth in Botswana. The empirical results show that healthcare infrastructure has a positive and significant impact on economic growth in Botswana in the long run. The results further reveal that electric power consumption has a positive and significant effect in influencing economic growth in the short run. The results imply that in order to achieve higher economic growth, policymakers should consider accelerating improvement of healthcare infrastructure.
Topic:
Infrastructure, Health Care Policy, Economic Growth, and Integration
Political Geography:
Africa and Botswana

34. Consumption Inequality in Botswana: The Decomposition of the Gini Coefficient of Consumer Expenditures

Author:
Lillian Mookodi
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This paper applies the Lerman and Yitzhaki (1985) inequality decomposition approach on food and non-food expenditures on the 2009/10 Botswana Core Welfare Indicator Survey; and the 2015/16 Multi Topic Indicator Survey datasets with an objective to see how overall inequality translates into inequality within each expenditure component. To test for a robustness of our results, we apply a simple bootstrap procedure to obtain the means, standard errors and confidence intervals for the component Gini coefficients estimates. The decomposition analysis results show that overall inequality based on the Gini coefficient of consumption expenditure within the groups has increased between the two periods from 0.498 to 0.533. These results suggest that this rise in overall expenditure inequality is due to the increased burden in the household budget of non-food spending, which tends to be more unequal than food spending. The consumption expenditure is very unequal on non-food items like recreation and hotels; health; education and transport. On one hand, lower Gini coefficients are observed for food; and clothing and footwear; these commodities are considered as necessities among others. This paper finally offers some possible policy measures to curb this consumption expenditure inequality.
Topic:
Food, Inequality, Consumption, and Spending
Political Geography:
Africa and Botswana

35. Structural Transformation and Fiscal Policy in Botswana

Author:
Kelesego Mmolainyane
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This paper analyses impacts of fiscal policy on structural transformation in Botswana using structural vector autoregression (SVAR) model over the period of 1990 to 2015. The study uses an inclusive sustainable transformation (IST) index and government expenditure as proxies for structural transformation and fiscal policy respectively. Results show that prudent fiscal policy can be used as a major strategic tool for structural transformation in Botswana. Most evidently, IST index responds positively to government expenditure shocks over time. In addition, fiscal policy innovations dominantly account for movements in structural transformation in Botswana. Notwithstanding, Botswana has a lot of potential and opportunity to use its fiscal policy more effectively and efficiently to promote an inclusive structural transformation that leads to sustainable economic growth.
Topic:
Fiscal Policy, Sustainability, and Economic Transformation
Political Geography:
Africa and Botswana

36. The Impact of Macroeconomic Variables on Capital Market Development in Botswana’s Economy

Author:
Koketso Molefhi
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study examines the impact of macroeconomic variables on stock and bond markets development in Botswana using Autoregressive Distributed Lag (ARDL)-Bounds Test. The results indicate that macroeconomic variables have an impact on capital market development in Botswana. In the short run, real output, money supply and inflation have a positive influence on the development of the stock market, while real exchange rate retards its development. Real output further supports the development of the stock market in the long run. For the bond market, only two variables, inflation rate and lending rate have positive and negative impact on the bond market in the long run respectively, while none of the variables influence the bond market in the short run. Policy implications include increased efforts by policy makers to increase money supply, gross domestic product for the development of stock market, while the bond market development requires a decrease in lending rates.
Topic:
Development, Economy, Macroeconomics, and Stock Markets
Political Geography:
Africa and Botswana

37. Education and Labour Market Activity of Women in Botswana

Author:
Goitseone Khanie
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study examines the prevalence of female participation in labour market activities and investigates the role played by education in this participation. Using the 2015/16 Botswana Multi Topic Household Survey data and a multinomial logit model, the study found that women with tertiary education are more likely to be wage employed relative to self-employment, whereas those with lower to no education are more likely to be unemployed or out of the labour force. This is because higher education is normally considered a prerequisite for most wage jobs. It is therefore imperative for the government to continue educating women beyond secondary level as it will better equip them to participate in more meaningful labour market activities. On the other hand, there is need to stimulate the demand side of the labour market in order to accommodate the rising numbers of women with high levels of education. In order to encourage participation of women in high rewarding self-employment activities, there is need to intensify empowerment schemes that are largely oriented towards their self-employment.
Topic:
Education, Markets, Labor Issues, and Women
Political Geography:
Africa and Botswana

38. Financial Inclusion and its Impact on Employment Creation in Botswana

Author:
Koketso Molefhi
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study examines the impact of financial inclusion on employment creation in Botswana using quarterly time series data for the period 2004-2016. Using Autoregressive Distributed Lag (ARDL) model, we find that availability of bank branches, ownership of bank account and borrowing from the commercial bank have a positive impact on employment creation in the short run. Similarly, in the long run, availability of bank branches, ownership of bank account has a positive relationship with employment creation in the long run. Depositors with commercial banks has a negative bearing on employment creation, both in the short run and in the long run. Therefore, policies should be aimed at ensuring easy access into the financial sector by way of reducing costs associated with account opening as well as creating affordable deposit and borrowing windows to the financially excluded groups.
Topic:
Employment, Finance, Financial Institutions, and Inclusion
Political Geography:
Africa and Botswana

39. Challenges of Project Implementation in Local Government: The Case of Francistown City Council and Kweneng District Council

Author:
Thabile A. Samboma
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Botswana is faced with many challenges of project implementation. Since independence detailed projects and programmes were initiated, with limited and often less developed state capacity to implement them. This study focuses on challenges of project implementation in Botswana’s tier of local government. A qualitative case research method approach was employed to undertake the study. Telephonic interviews were conducted with politicians and employees from Francistown City Council (FCC) and Kweneng District Council (KDC) and data was analysed using thematic analysis. The paper outlines project implementation challenges in Local Authorities (LA). For instance, lack of capacity, lack of commitment by the District Development Committee (DDC), poor stakeholder engagement and lack of financial autonomy by councils. Some of the identified implementation challenges are not peculiar to the two LAs but cuts across local authorities in Botswana. However, low human capacity in local authorities was cited as a major problem in project implementation.
Topic:
Development, Government, Policy Implementation, and Authority
Political Geography:
Africa and Botswana

40. Competitiveness-of ACP Sugar Exports in Global Markets

Author:
Tebogo Seleka and Thula Dlamini
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
We employ the Normalized Revealed Comparative Advantage (NRCA) index on data for the period 1961-2013 to examine the competitiveness of the African, Caribbean and Pacific (ACP) countries in the global sugar market. Results indicate that the majority of the ACP states had comparative advantage in the global sugar market during the period 1961-2013. However, most of these countries also experienced declining comparative advantage, except for a few African countries that emerged from initial states of extreme comparative disadvantage to marginal comparative (dis)advantage. This occurred despite the fact that these countries enjoyed tariff free access to the highly protected EU market. Mauritius, followed by Fiji, Guyana and Jamaica, recorded the strongest comparative advantage among the ACP countries. However, it recorded weaker comparative advantage than the leading comparator non-ACP countries of Australia, Brazil and Thailand, which experienced considerable increases in comparative advantage over the considered period. Overall, there has been convergence in comparative advantage among ACP states since the signing of the Lomé convention in 1975.
Topic:
Development, Economics, Exports, Macroeconomics, and Economic Development
Political Geography:
Africa and Botswana