Abstract

The study analyzes the economic growth of Gambia through factors such as trade openness, investment, and government spending by using a dynamic linear regression model. This study uses yearly data from 1980 to 2020 with a total sample of 41 years. The results show that government expenditure and FDI are significantly and positively related to economic growth, while trade openness, on the other hand, influences economic growth negatively in the Gambia. The Gambian government should increase its expenditure on productive sectors to improve the performance of the economic growth of the Gambia. It also needs to provide import substitute industries to encourage the dependence on local goods compared to external goods.

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