Abstract
In order to boost up the economic growth of any country, Exports should be considered as key factor as it contributes immensely in which Sierra Leone as a nation is no exception. Therefore, this research paper target to investigate the effect of export on the economic growth of Sierra Leone using time series data of exports and the gross domestic products ranging from 1990- 2019 which was source from the World Bank Indicators. In order to accomplish the aim of this paper, descriptive statistics, regression, correlation, Augmented Dickey- Fuller Unit root test, Johansen cointegration test, Vector Auto regression model, diagnostic test and the Pair- wise Granger causality test were the tools used to analyze the data. Based on the results from both regression analysis, it can be seen that export has a significant positive effect on the economic growth of Sierra Leone. Augmented Dickey-Fuller unit root test results shows existence of stationarity at first difference was detected, while the cointegration test results revealed that, there is no relationship between the exports and economic growth. However, the Vector Auto regressive model test revealed that, exports have a significant effect on the economic growth as well. Granger causality test, shows that both exports influence the Gross Domestic Product of Sierra leone.
Highlights
Sierra Leone is a small country located in West Africa and is bordered by Liberia, Guinea and the Atlantic Ocean respectively
In order to have a proper understanding on the relationship that exist between Economic growth and the Export rate of the country, the study establish an economic model in which the Gross domestic products will be used as the dependent variable, while the Exports of goods and services will be used as the independent variable
The main focus of this study is to determine the link between exports and economic growth of Sierra Leone in the period 1990-2019
Summary
Sierra Leone is a small country located in West Africa and is bordered by Liberia, Guinea and the Atlantic Ocean respectively. It has been proven over the years that; exports have played a very vital role towards the economy growth of the country. Notwithstanding, the closure of iron means has resulted increase in the production of other minerals like diamond, bauxite and gold. The contribution of this mineral resources has greatly influenced the gross domestic products, the country has experienced a decline which as well decrease the economic performance. In order to accomplish this this study, the paper is been structured into sections: section one present the introduction of the study, section two deals with various literature related to the topic, section three discuss the data and methodology used, section four present the analysis and interpretation of the data while section five discuss the conclusion and recommendations of this study
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