MMIJ Annual Meeting

Empirical studies have shown an inverse relation between natural resource abundance and long-term growth (Resource Curse). This study explores the impact of mining sector in the economy of Botswana through sectoral linkages to find out if booming of the mining sector resulted in other sectors' underperformance and how overall real GDP will be affected in the long-run. Multivariate VAR, impulse response functions and variance decomposition analysis are employed to examine dynamic relationship.