Contents of the volume

2017, Volume 70 - Issue 2

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 02 May 2017

THE EFFECT OF LABOR MARKET FREEDOM AND OTHER FACTORS ON U.S. SETTLEMENT PATTERN DECISIONS OF UNDOCUMENTED IMMIGRANTS, 2012 AND 2014

Richard Cebula, Maggie Foley

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DETERMINANTS OF THE RELATIVE IMPORTANCE OF EDUCATION IN LOW-INCOME AND LOWER-MIDDLE INCOME COUNTRIES

Minh Quang Dao

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ON THE PROTECTION OF INVESTMENT CAPITAL DURING FINANCIAL CRISIS IN THE SOUTH AFRICAN EQUITY MARKET: A RISK-BASED ASSET ALLOCATION APPROACH

John Weirstrass Muteba Mwamba, Lamukanyani Mantshimuli

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THE IMPACT OF FINANCIAL DEVELOPMENT ON INVESTMENT IN BOTSWANA: AN ARDL-BOUNDS TESTING APPROACH

Brian Muyambiri, Nicholas M. Odhiambo

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SYSTEMIC ANALYSIS OF TRADE LIBERALISATION: POLICY ENTREPRENUERSHIP AND BEHAVIOURAL VARIABLES IN A TWO-LEGAL GAME FRAMEWORK

Ivan Trofimov

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FDI, EXPORT SOPHISTICATIONS, AND EXPORT UPGRADING IN EMERGING ECONOMIES: EVIDENCE FROM CHINESE MANUFACTURINGS

Kevin Honglin Zhang

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

< Back

Corresponding author

Brian MUYAMBIRI, Department of Business, Botswana Open University, Gaborone, Botswana

Co-authors

Nicholas M. ODHIAMBO, Department of Economics, University of South Africa, Pretoria, South Africa

The Impact of Financial Development on Investment in Botswana: an ARDL-Bounds Testing Approach

Pages

193-216

Abstract

This paper examines the impact of both bank-based and market-based financial development on investment in Botswana during the period 1976 – 2014, using the autoregressive distributed lag (ARDL) bounds testing approach. The study adopts a flexible accelerator model, which enhances the relationship between financial development and investment. In order to capture the breadth and depth of the financial sector in the study country, the study makes use of bank- and market-based financial development indices. These are constructed from an array of bank- and market-based financial development indicators. The empirical results of this study show that while bank-based financial development has both a long-run and short-run positive impact on investment in Botswana, market-based financial development has no significant impact on investment, either in the short run or in the long run.

JEL classification

G10, G20, E22

Keywords

Botswana, Investment, Bank-Based Financial Development, Market-Based Financial Development, Flexible Accelerator Model

Index

  1. Introduction
  2. Financial development in Botswana
  3. Theoretical and empirical literature review
  4. Empirical model specification, estimation techniques and empirical results
  5. Conclusion

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