An Investigation of Sectoral Comparative Advantage of Botswana

The paper investigated sectoral comparative advantage of Botswana. Machinery/electric sector tops inter-sectoral comparative advantage in Botswana. It is followed by the textiles sector. The least in terms of comparative advantage is foot wear/head gear sector then followed by raw hides, skins leather and furs sector. The sector which tops in Botswana in comparative advantage, is not necessarily the one that tops in export value. Diamonds which dominate Botswana’s exports fall in the stone/glass sector and the sector possess less comparative advantage than other sectors ahead of it. It is recommended that Botswana should be promoting other products also other than diamonds in the international markets. That Botswana enacts a focused export promotion strategy on sectors which possess comparative advantage. Botswana should continue providing enabling environment that can lead to inflow of foreign direct investment through transnational corporations with technology that can improve sectoral comparative advantage.