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Growth Empirics: Evidence from Sierra Leone
Author(s) -
Kallon Kelfala M.
Publication year - 2013
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/j.1467-8268.2013.12025.x
Subject(s) - sierra leone , economics , cointegration , depreciation (economics) , stock (firearms) , per capita , per capita income , investment (military) , macroeconomics , development economics , econometrics , capital formation , human capital , economic growth , geography , financial capital , population , demography , archaeology , sociology , politics , political science , law
In this paper, I use a novel approach to estimate Sierra Leone's aggregate capital stock from gross fixed investment and depreciation. Using Johanssen's maximum‐likelihood cointegration methodology, I then estimate the parameters of the country's long‐run per capita aggregate production function. Thereafter, the sources of economic growth are calculated, the key finding being that economic growth in post‐independence Sierra Leone has been propelled by mostly capital accumulation. The implications of this capital‐driven growth on poverty reduction and income distribution are then discussed. Policy recommendations for how to simultaneously promote economic growth and improve the living standard of the average Sierra Leonean are also provided.