2017, Volume 70 - Issue 2
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 2014Read the article
DETERMINANTS OF THE RELATIVE IMPORTANCE OF EDUCATION IN LOW-INCOME AND LOWER-MIDDLE INCOME COUNTRIESRead the article
ON THE PROTECTION OF INVESTMENT CAPITAL DURING FINANCIAL CRISIS IN THE SOUTH AFRICAN EQUITY MARKET: A RISK-BASED ASSET ALLOCATION APPROACHRead the article
THE IMPACT OF FINANCIAL DEVELOPMENT ON INVESTMENT IN BOTSWANA: AN ARDL-BOUNDS TESTING APPROACHRead the article
SYSTEMIC ANALYSIS OF TRADE LIBERALISATION: POLICY ENTREPRENUERSHIP AND BEHAVIOURAL VARIABLES IN A TWO-LEGAL GAME FRAMEWORKRead the article
Brian MUYAMBIRI, Department of Business, Botswana Open University, Gaborone, Botswana
Nicholas M. ODHIAMBO, Department of Economics, University of South Africa, Pretoria, South Africa
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.
G10, G20, E22
Botswana, Investment, Bank-Based Financial Development, Market-Based Financial Development, Flexible Accelerator Model
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