This paper applies the sequential Malmquist index to calculate multi-lateral,
multi-factor productivity (MFP) indices for agriculture in the eighteen districts
and the commercial sector of Botswana from 1981 to 1996. The MFP index
grew at an average rate of 1.7% per annum, led by the regions that specialize
in livestock, which grew at well over 3% per annum. This growth was
powered by technological change at 4% per year, but offset by technical
efficiency falling at 2.4% per annum, as the commercial sector and the better
regions exploited new technologies and infrastructure, whereas the less
productive areas fell further behind the best practice frontier. Thus,
convergence tests show that the gap between the more productive and the
poorer regions widened.