Determinants of Export Decisions by Manufacturing Firms in Botswana

Kefilwe Sebolao; Lesego Sekwati; Malebogo Bakwena

doi:doi:10.11648/j.ijber.20190805.12

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Determinants of Export Decisions by Manufacturing Firms in Botswana

Kefilwe Sebolao, Lesego Sekwati, Malebogo Bakwena

Published in International Journal of Business and Economics Research (Volume 8, Issue 5)

Received: 11 June 2019 Accepted: 16 July 2019 Published: 5 August 2019

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Abstract

The paper examines determinants of export decisions and export intensity by manufacturing firms in Botswana, a developing country in Sub-Saharan Africa. Manufacturing, is one of several sectors through which the government seeks to pursue the all-important diversification of the economy. Botswana’s economy is heavily dependent on a diamond sector that in recent years has been declining, and is expected to decline further as diamond resources dwindle. Manufacturing is one of the sectors expected to play an important role in driving the expansion of the economic base. This paper contributes to the debate on policies to promote the growth of the sector. The paper examines factors likely to influence firms decisions to participate in global markets. Global markets provide a higher potential for firms to grow and make a meaningful impact in the economy. The paper applies Probit and Tobit models to firm level data to identify determinants of the decision to export and analyse export intensity respectively. The results of the Probit model show that firm age, firm size, human capital and access to finance increase rge likelihood of entering the export markets. On export intensity, results from the Tobit model show that firm size, human capital and firm location matter. The results suggest that economic gains can be expected from improving access and quality of education. Access to finance, and sea ports. Sector specific policies are also likely to benefit firms in textile and garments and chemicals.

Published in	International Journal of Business and Economics Research (Volume 8, Issue 5)
DOI	10.11648/j.ijber.20190805.12
Page(s)	257-262
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Export Decision, Export Intensity, Manufacturing Firms

References

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APA Style

Kefilwe Sebolao, Lesego Sekwati, Malebogo Bakwena. (2019). Determinants of Export Decisions by Manufacturing Firms in Botswana. International Journal of Business and Economics Research, 8(5), 257-262. https://doi.org/10.11648/j.ijber.20190805.12

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ACS Style

Kefilwe Sebolao; Lesego Sekwati; Malebogo Bakwena. Determinants of Export Decisions by Manufacturing Firms in Botswana. Int. J. Bus. Econ. Res. 2019, 8(5), 257-262. doi: 10.11648/j.ijber.20190805.12

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AMA Style

Kefilwe Sebolao, Lesego Sekwati, Malebogo Bakwena. Determinants of Export Decisions by Manufacturing Firms in Botswana. Int J Bus Econ Res. 2019;8(5):257-262. doi: 10.11648/j.ijber.20190805.12

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@article{10.11648/j.ijber.20190805.12,
  author = {Kefilwe Sebolao and Lesego Sekwati and Malebogo Bakwena},
  title = {Determinants of Export Decisions by Manufacturing Firms in Botswana},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {5},
  pages = {257-262},
  doi = {10.11648/j.ijber.20190805.12},
  url = {https://doi.org/10.11648/j.ijber.20190805.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190805.12},
  abstract = {The paper examines determinants of export decisions and export intensity by manufacturing firms in Botswana, a developing country in Sub-Saharan Africa. Manufacturing, is one of several sectors through which the government seeks to pursue the all-important diversification of the economy. Botswana’s economy is heavily dependent on a diamond sector that in recent years has been declining, and is expected to decline further as diamond resources dwindle. Manufacturing is one of the sectors expected to play an important role in driving the expansion of the economic base. This paper contributes to the debate on policies to promote the growth of the sector. The paper examines factors likely to influence firms decisions to participate in global markets. Global markets provide a higher potential for firms to grow and make a meaningful impact in the economy. The paper applies Probit and Tobit models to firm level data to identify determinants of the decision to export and analyse export intensity respectively. The results of the Probit model show that firm age, firm size, human capital and access to finance increase rge likelihood of entering the export markets. On export intensity, results from the Tobit model show that firm size, human capital and firm location matter. The results suggest that economic gains can be expected from improving access and quality of education. Access to finance, and sea ports. Sector specific policies are also likely to benefit firms in textile and garments and chemicals.},
 year = {2019}
}

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TY - JOUR
T1 - Determinants of Export Decisions by Manufacturing Firms in Botswana
AU - Kefilwe Sebolao
AU - Lesego Sekwati
AU - Malebogo Bakwena
Y1 - 2019/08/05
PY - 2019
N1 - https://doi.org/10.11648/j.ijber.20190805.12
DO - 10.11648/j.ijber.20190805.12
T2 - International Journal of Business and Economics Research
JF - International Journal of Business and Economics Research
JO - International Journal of Business and Economics Research
SP - 257
EP - 262
PB - Science Publishing Group
SN - 2328-756X
UR - https://doi.org/10.11648/j.ijber.20190805.12
AB - The paper examines determinants of export decisions and export intensity by manufacturing firms in Botswana, a developing country in Sub-Saharan Africa. Manufacturing, is one of several sectors through which the government seeks to pursue the all-important diversification of the economy. Botswana’s economy is heavily dependent on a diamond sector that in recent years has been declining, and is expected to decline further as diamond resources dwindle. Manufacturing is one of the sectors expected to play an important role in driving the expansion of the economic base. This paper contributes to the debate on policies to promote the growth of the sector. The paper examines factors likely to influence firms decisions to participate in global markets. Global markets provide a higher potential for firms to grow and make a meaningful impact in the economy. The paper applies Probit and Tobit models to firm level data to identify determinants of the decision to export and analyse export intensity respectively. The results of the Probit model show that firm age, firm size, human capital and access to finance increase rge likelihood of entering the export markets. On export intensity, results from the Tobit model show that firm size, human capital and firm location matter. The results suggest that economic gains can be expected from improving access and quality of education. Access to finance, and sea ports. Sector specific policies are also likely to benefit firms in textile and garments and chemicals.
VL - 8
IS - 5
ER -

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Author Information

Kefilwe Sebolao

Department of Economics, University of Botswana, Gaborone, Botswana
Lesego Sekwati

Department of Economics, University of Botswana, Gaborone, Botswana
Malebogo Bakwena

Department of Economics, University of Botswana, Gaborone, Botswana

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APA Style

Kefilwe Sebolao, Lesego Sekwati, Malebogo Bakwena. (2019). Determinants of Export Decisions by Manufacturing Firms in Botswana. International Journal of Business and Economics Research, 8(5), 257-262. https://doi.org/10.11648/j.ijber.20190805.12

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ACS Style

Kefilwe Sebolao; Lesego Sekwati; Malebogo Bakwena. Determinants of Export Decisions by Manufacturing Firms in Botswana. Int. J. Bus. Econ. Res. 2019, 8(5), 257-262. doi: 10.11648/j.ijber.20190805.12

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AMA Style

Kefilwe Sebolao, Lesego Sekwati, Malebogo Bakwena. Determinants of Export Decisions by Manufacturing Firms in Botswana. Int J Bus Econ Res. 2019;8(5):257-262. doi: 10.11648/j.ijber.20190805.12

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@article{10.11648/j.ijber.20190805.12,
  author = {Kefilwe Sebolao and Lesego Sekwati and Malebogo Bakwena},
  title = {Determinants of Export Decisions by Manufacturing Firms in Botswana},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {5},
  pages = {257-262},
  doi = {10.11648/j.ijber.20190805.12},
  url = {https://doi.org/10.11648/j.ijber.20190805.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190805.12},
  abstract = {The paper examines determinants of export decisions and export intensity by manufacturing firms in Botswana, a developing country in Sub-Saharan Africa. Manufacturing, is one of several sectors through which the government seeks to pursue the all-important diversification of the economy. Botswana’s economy is heavily dependent on a diamond sector that in recent years has been declining, and is expected to decline further as diamond resources dwindle. Manufacturing is one of the sectors expected to play an important role in driving the expansion of the economic base. This paper contributes to the debate on policies to promote the growth of the sector. The paper examines factors likely to influence firms decisions to participate in global markets. Global markets provide a higher potential for firms to grow and make a meaningful impact in the economy. The paper applies Probit and Tobit models to firm level data to identify determinants of the decision to export and analyse export intensity respectively. The results of the Probit model show that firm age, firm size, human capital and access to finance increase rge likelihood of entering the export markets. On export intensity, results from the Tobit model show that firm size, human capital and firm location matter. The results suggest that economic gains can be expected from improving access and quality of education. Access to finance, and sea ports. Sector specific policies are also likely to benefit firms in textile and garments and chemicals.},
 year = {2019}
}

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