The Finance – Growth Nexus in Botswana: A Multivariate Causal Linkage

Brian Muyambiri 1 * , Nancy Neoyame Chabaefe 1

DUTCH J FINANCE MANA, Volume 2, Issue 2, Article No: 03.

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This paper evaluates the dynamic causal relationship between financial development, savings, investment and economic growth in Botswana from 1976-2014 by employing a multivariate causality model. Results reveal that it is chiefly investment that drives the bank-related and stock exchange-based financial sectors in the short run. Stock exchange-based financial development drives bank-related financial development and savings in both the short run and the long run. While, savings are found to Granger-cause investment. Economic growth Granger-causes investment and savings, both, in the short run and long run. Further, only bank-related financial development is found to Granger-cause economic growth in Botswana.


financial development, economic growth, multivariate causality, Botswana




Muyambiri, B., and Chabaefe, N. N. (2018). The Finance – Growth Nexus in Botswana: A Multivariate Causal Linkage. Dutch Journal of Finance and Management, 2(2), 03.

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