Working Paper

The Impact of Infrastructure on Economic Growth in Botswana

This paper determined how infrastructure stock impacts long-term economic growth in Botswana using the ARDL framework. The infrastructure variables considered in the study are the number of health facilities (proxy for healthcare infrastructure), number of schools established (proxy for education infrastructure), electric power consumption and the total length of roads maintained by central government. The results of the long run estimation show that only healthcare infrastructure has a positive and significant impact on GDP per capita in Botswana which implies that healthcare infrastructure plays an important role in driving economic growth in Botswana. However, the results reveal that the number of schools established, electric power consumption and the total length of roads maintained by central government do not have a significant impact on GDP per capita in the long run. The short run estimation results reveal that electric power consumption has a positive and significant impact on GDP per capita in the short run implying that electricity is important for Botswana’s economic growth. However, education infrastructure was found to have a negative and significant impact on economic growth in the short run.