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.
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.
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