Accelerating Agricultural Productivity to Enhance Economic Growth in Botswana

Abstract

The need to diversify the economy so as to ensure sustainable economic growth has been of great concern. Accelerating productivity in agriculture is seen as one of the alternatives to support the diversification initiatives by the government and drive growth in Botswana. This study discusses the factors contributing to increased long term agricultural productivity and hence its subsequent impact on growth in the short. The study employs the vector error correction model and annual data to explain the connection between key variables. This paper concludes that there is unidirectional causality from agricultural productivity to growth. This study shows that economic growth can be improved in the short term by improvements in agricultural productivity. Agricultural productivity can be enhanced by providing adequate infrastructure, additional farming machinery per hectare of arable land and having a targeted approach in the provision of funding towards agricultural oriented initiatives.Contribution/ Originality: This study's primary contribution is the finding that the agricultural led growth hypothesis applies to Botswana. The study is one of the few that use the vector error correction model to analyze the determinants of long term agricultural productivity. BACKGROUND TO THE STUDYThe Sustainable Development Goals (SDGs) aim to end extreme hunger and all forms of poverty, achieve food security improve nutrition and promote sustainable agriculture by 2030. This is enhanced by promoting sustainable agriculture and supporting small farmers. SDGs also seek to promote sustained, inclusive growth, full and productive employment and decent work for all [1,2]. Agriculture enhances sustainable development, poverty reduction and inclusive growth. However the changing weather patterns due to climate change has resulted in severe droughts particularly in Sub Saharan Africa (SSA). The impact of climate change on rainfall patterns has threatened food security especially in agro-based economies. The demand for agricultural produce is increasing and putting immense pressure on governments to increase productivity levels. Increased productivity by farmers has potential to eliminate poverty among the rural populace and to guarantee enough food supplies on a sustainable

The Impact of Agricultural Productivity on Economic Growth in Africa

“…However, there is no significant impact observed for labor employed in agriculture. Mbulawa (2017), study focused on the factors that contribute to long-term agricultural productivity and their subsequent impact on short-term growth. The author utilized the vector error correction model and annual data to establish the relationship between key variables.…”

An Analysis of Electricity Generation, Supply, and Economic Growth in Selected SADC Countries

“…Scholars such as utilised the VECM model and found that electricity supply boosts economic growth in South Africa on time series data spanning from 1990 to 2012 citing to the fact that models does not necessarily matter when it come to the relationship between the variables. Adebola (2011), Amusa andLeshoro (2013), andOdhiambo (2021) utilised ARDL model while Mbulawa (2017), Chingoiro and Mbulawa (2017) and Sunde (2020) utilised a VECM and VAR models respectively to analyse the relationship between the variables in Botswana. These studies found a positive relationship and unidirectional causality between electricity consumption and economic growth emphasizing that electricity is important for the growth of an economy.…”

Crop Production, Livestock Production and Economic Growth in Botswana (1990-2017): An Application of ARDL Model

“…Agriculture food deficit draws down reserves for the country (Mazonde, 1993;and Jefferis and Nemaorani, 2014). There is need to improve production skills so as to increase agriculture output (Mbulawa, 2017). Of note is that livestock rearing is Botswana's key agricultural output and export (Makoni, 2015).…”

“…With a decrease in international mineral prices and depletion of the nonrenewable mining resources, the need to diversify the economy so as to ensure sustainable economic growth has been of great concern. Accelerating productivity in agriculture is seen as one of the alternatives to support the diversification initiatives by the government and drive growth in Botswana (Mbulawa, 2017). Mbulawa (2017) investigated the relationship between agriculture productivity and economic growth in Botswana.…”

“…Accelerating productivity in agriculture is seen as one of the alternatives to support the diversification initiatives by the government and drive growth in Botswana (Mbulawa, 2017). Mbulawa (2017) investigated the relationship between agriculture productivity and economic growth in Botswana. Results of the study showed that economic growth can be improved in the short term by improvements in agricultural productivity.…”