An investigation of the determinants of private investment: the case of Botswana.

by Lesotlho, Patrick

Abstract (Summary)

Private investment in Botswana as well as a ratio to Gross Domestic Product has been falling in some periods of 1976-2003. Viewed against the background of growing evidence of a link between investment and economic growth, an inconsistent and downward trend in Botswana's private investment is a matter of concern. Several studies in developing countries emphasize the importance of macroeconomic policy in explaining variations in investment, an in particular, identify the microeconomic determinants of private investment to include interest rates, output growth, public investment, bank credit to the private sector, inflation, real exchange rate, and the level of trade. This study evaluated the macroeconomic determinants of private investment in Botswana by means of a regression analysis based on the co-integration and Error Correction Model of Engle and Granger (1987).

Bibliographical Information:


School:University of the Western Cape/Universiteit van Wes-Kaapland

School Location:South Africa

Source Type:Master's Thesis

Keywords:investments foreign botswana gross domestic product economic development


Date of Publication:01/01/2006

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