The Impact of Government Fiscal Expenditure on Sierra Leone’s Economic Growth

Foday Sulaiman Bangura
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Foday Sulaiman Bangura: School of Government, University of International Business and Economics (UIBE), Beijing, China.

Journal of Scientific Reports, 2024, vol. 7, issue 1, 1-14

Abstract: This study examines the impact of government fiscal expenditures on Sierra Leone’s economic growth. Based on the study, the researcher disaggregated government fiscal expenditures into three major groups: capital, education, and consumption. In this study, the researcher used a casual-comparative research design to evaluate the independent and dependent variables. The current study uses time series data from the World Bank’s World Development Indicators database covering the period from 2008 to 2022. We employed Ordinary Least Square and Prais Winsten AR (1) regression models. Based on the analysis, government expenditure on capital projects, education, and consumption had a positive and significant effect on Sierra Leone’s economic growth. Conclusively, the findings of this research have furnished additional empirical data regarding government fiscal expenditures on crucial economic domains like capital (fixed), education and consumption (current). It has also unambiguously identified the most efficacious sectors to which the government should allocate greater emphasis in order to enhance the country’s economic growth. The researcher recommends the government of Sierra Leone to continue augmenting its financial support for capital projects, practice judicious consumer expenditures and invest in education that fosters innovation. To maximize the effects of government fiscal expenditures across multiple economic sectors, it is critical to ensure efficient and effective allocation of funds. Getting the desired results requires focused spending, transparent budget processes, and monitoring methods.

Keywords: Government Fiscal Expenditure; Economic Growth; Gross Domestic Product; Gross Capita Formation; Capital Expenditure; Current Expenditure; Prais Winsten and OLS (search for similar items in EconPapers)
Date: 2024
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