International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Economic Growth, Institutions, and the Natural Resource Curse in Sierra Leone: an Empirical Investigation
Chernor Momodu Bah

This paper empirically investigates the existence of the resource curse in Sierra Leone through looking at the relationship between economic growth and resource dependence. The study adopted a Barrow-type growth model to analyze the effect of natural resource dependence on economic growth. A time series approximation technique was employed using relevant data from Sierra Leone from 1975-2014. The results from the time series regressions found a positive relationship between the rate of economic growth and natural resource dependence. This means that, the findings of this paper rejected the resource curse hypothesis in the Sierra Leone context relative to the data and method (time series analysis) employed. The findings suggests that a 1% increase in total natural resources rents (% of GDP), as a proxy of resource dependence, improves the economic growth of the country by approximately 9% in the long run. To this end, the government should endeavor to improve the means and methods of collecting natural resources rents to boost the economy of the country, hence economic development and the standard of living of the people in the country.

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