Education and Economic Growth: The Causal Relationship in Sierra Leone

Jackson, Emerson Abraham (2023): Education and Economic Growth: The Causal Relationship in Sierra Leone. Published in: Bank of Sierra Leone Policy Brief (9 May 2023): pp. 1-8.

Abstract

The objective of the paper is to investigate the value-addition that expenditure on education has on economic growth in the Sierra Leone. The vector autoregression methodology is applied to annual dataspanning 2000 – 2021, taking the time series properties of variables into consideration. A shock to government investment in education shows a positive response of growth but not immediately, which confirm that investment in education is conducive to long-term growth in Sierra Leone. Given government budget constraint, especially under a highly constrained tax revenue mobilization, efforts in building Public-Private-Partnership (PPP) as a way of facilitating sustainable long-term economic growth is imperative while increased donor support for Government investment in education is important for sustained inclusive growth in Sierra Leone.

• Item Type: MPRA Paper
• Language: English
• Keywords: Education, Economic Growth, VAR, Sierra Leone
• Subjects: C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs; C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs > C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data ; Data Access; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I26 - Returns to Education; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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