IDEAS home Printed from https://ideas.repec.org/a/aif/report/v7y2024i1p1-14.html

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

Author

Listed:
  • Foday Sulaiman Bangura

    (School of Government, University of International Business and Economics (UIBE), Beijing, China.)

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.

Suggested Citation

  • Foday Sulaiman Bangura, 2024. "The Impact of Government Fiscal Expenditure on Sierra Leone’s Economic Growth," Journal of Scientific Reports, IJSAB International, vol. 7(1), pages 1-14.
    • Handle: RePEc:aif:report:v:7:y:2024:i:1:p:1-14
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/1040.pdf
    Download Restriction: no
    File URL: https://ijsab.com/jsr-volume-7-issue-1-2/7081
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vandana Bhavsar & Pradeepta Kumar Samanta, 2023. "Analysing the impact of quality of government expenditure on economic growth: evidence from Indian states," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 15(1), pages 72-92.
    2. Arik Sadeh & Claudia Florina Radu & Cristina Feniser & Andrei Borşa, 2020. "Governmental Intervention and Its Impact on Growth, Economic Development, and Technology in OECD Countries," Sustainability, MDPI, vol. 13(1), pages 1-30, December.
    3. Tuan T. Chu & Jens Hölscher & Dermot McCarthy, 2020. "The impact of productive and non-productive government expenditure on economic growth: an empirical analysis in high-income versus low- to middle-income economies," Empirical Economics, Springer, vol. 58(5), pages 2403-2430, May.
    4. Eugene Msizi Buthelezi, 2023. "Impact of government expenditure on economic growth in different states in South Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(1), pages 2209959-220, December.
    5. Hasnul, Al Gifari, 2015. "The effects of government expenditure on economic growth: the case of Malaysia," MPRA Paper 71254, University Library of Munich, Germany.
    6. Deepti Ahuja & Deepak Pandit, 2020. "Public Expenditure and Economic Growth: Evidence from the Developing Countries," FIIB Business Review, , vol. 9(3), pages 228-236, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Siti Nur Ayunie Binti Zawawi & Chong Siew Huay & Tun Yin Li, 2024. "The Impact of Government Expenditure on Economic Growth in Malaysia," Information Management and Business Review, AMH International, vol. 16(3), pages 240-249.
    2. Huang, Tianwei & Yang, Lei & Liu, Yufei & Liu, Haibing, 2023. "Dutch disease revisited: China's provincial data perspective with the role of green finance and technology peak," Resources Policy, Elsevier, vol. 83(C).
    3. Obukohwo Oba Efayena & Enoh Hilda Olele, 2024. "Moderating the Effect of Institutional Quality on the Fiscal Policy and Economic Growth Nexus: What Evidence Exists in Sub-Saharan Africa?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 20436-20458, December.
    4. Chai-Thing Tan & Azali Mohamed & Muzafar Shah Habibullah & Lee Chin, 2020. "The Impacts of Monetary and Fiscal Policies on Economic Growth in Malaysia, Singapore and Thailand," South Asian Journal of Macroeconomics and Public Finance, , vol. 9(1), pages 114-130, June.
    5. Yang, Zhen & Gao, Weijun & Han, Qing & Qi, Liyan, 2024. "Aggravating or alleviating? Smart city construction and urban inequality in China," Technology in Society, Elsevier, vol. 77(C).
    6. Kestrim Avdimetaj & Muhamet Gervalla, 2025. "The Relation Between Government Expenditures and Economic Growth: An Empirical Analysis in European Developing Countries," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 354-377, June.
    7. Robert Daniel Stanescu & Alexandra Cristina Dinu, 2021. "The Tracking of Industrial and Digital Revolutions and the Importance of Human Capital Development," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 532-537, December.
    8. Li, Shuqi & Xu, Nuo, 2024. "Fair Competition Review System and cross-regional capital flow: Evidence from China," Finance Research Letters, Elsevier, vol. 70(C).
    9. Miningou,Elise Wendlassida, 2023. "External Debt, Fiscal Consolidation, and Government Expenditure on Education," Policy Research Working Paper Series 10475, The World Bank.
    10. Tang, Cheng-Tao & Wong, Chun Yee & Alas, Orelie Bathan Delas, 2024. "Effect of intergovernmental transfers on income and poverty rates: Evidence from the Philippines," World Development, Elsevier, vol. 173(C).
    11. Elisé Wendlassida Miningou, 2022. "External debt, fiscal consolidation, and government expenditure on education," Cahiers de recherche 22-02, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    12. Gianni Carvelli, 2023. "The long-run effects of government expenditure on private investments: a panel CS-ARDL approach," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 47(3), pages 620-645, September.
    13. Masduki, Uki & Rindayati, Wiwiek & Mulatsih, Sri, 2022. "How can quality regional spending reduce poverty and improve human development index?," Journal of Asian Economics, Elsevier, vol. 82(C).
    14. Busato, Francesco & Varlese, Monica & Ulloa Severino, Claudia, 2022. "Public debt heterogeneity at country level: an empirical analysis," MPRA Paper 113812, University Library of Munich, Germany.
    15. Nyasha Sheilla & Odhiambo Nicholas M., 2019. "The Impact of Public Expenditure on Economic Growth: A Review of International Literature," Folia Oeconomica Stetinensia, Sciendo, vol. 19(2), pages 81-101, December.
    16. Abbas, Jawad & Wang, Lisu & Ben Belgacem, Samira & Pawar, Puja Sunil & Najam, Hina & Abbas, Jaffar, 2023. "Investment in renewable energy and electricity output: Role of green finance, environmental tax, and geopolitical risk: Empirical evidence from China," Energy, Elsevier, vol. 269(C).
    17. Marios Psychalis & Panagiotis Gournas & Nagia Grigorakou & Petros Dimitrakopoulos & George Stivachtis, 2020. "Fiscal Policy, Growth and Competitiveness in EMU: Evidence from Portugal and Greece," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 18-24.
    18. Ying Tan & Feng Hai & József Popp & Judit Oláh, 2022. "Minimizing Waste in the Food Supply Chain: Role of Information System, Supply Chain Strategy, and Network Design," Sustainability, MDPI, vol. 14(18), pages 1-15, September.
    19. Michael Koczyrkewycz & Taha Chaiechi & Rabiul Beg, 2021. "Productivity Growth Recovery Mechanisms: An ARDL Approach Lessons from the United States, Japan and South Korea," Bulletin of Applied Economics, Risk Market Journals, vol. 8(2), pages 163-184.
    20. Ngouhouo, Ibrahim & Tchoffo, Rodrigue, 2019. "Real level of public investment: how to manage the inflation?," MPRA Paper 95914, University Library of Munich, Germany, revised 15 Sep 2019.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aif:report:v:7:y:2024:i:1:p:1-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Farjana Rahman (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.