Botswana's revealed comparative advantage

Abstract

Analysis of Botswana’s competitiveness in world trade has been presented based on indices of revealed comparative advantage (RCA) calculated for the period 1999 and 2004. Results show that Botswana has RCA in diamonds, copper matte, and meat of bovine animals, among other products. Changes in values of RCA over time reinforce the dynamic nature of comparative advantage. The study established that the country gained comparative specialization in the following products: sugar products; copper ores and concentrates, in which it previously had comparative disadvantage. On the downward side, the country lost specialization in products such as coal gas and water gas.