Economic Liberalization in Liberia and Its Effects on Unemployment and Economic Growth

Abstract

This study sought to establish the status of economic liberalization in the modern Liberia and its impact on unemployment rate and economic growth. The study established different forms of economic liberalisation in Liberia: Liberalization of state owned enterprises, encouragement of free trade, increased deregulation of expert and import as well as regional trade, encouragement of open markets, reduction in taxation brackets, and abolition of trade tariffs and price controls. The study also established that economic liberalisation was significantly associated to reduction in unemployment rate and an increase in economic growth. The study recommends that the new leadership in Liberia should allow for local ownership of SOEs through floating them in the stock exchange through the initial Public Offer (IPO), as well as monitoring its macro- and micro fiscal policies to encourage local production and consumption. Keywords: Economic Liberalization, Economic Growth, Unemployment, State-Owned Enterprises. DOI : 10.7176/JESD/10-18-07 Publication date :September 30 th 2019