The civil war and its implications on sierraleone’s economy

The paper focuses on the effect the eleven years civil war has on Sierra Leone’s economy. For the purpose of empirical analysis, annual time series data ranging from 1980 to 2015 were used. The method of estimation was Ordinary Least Square (OLS). The unit root test indicated that Real Gross Domestic Product (RGDP), Foreign Direct Investment (FDI) and EXPT became stationary at first difference I (1), FDI became stationary. The estimated OLS results indicated that both FDI and EXPT has a positive relationship with RGDP in Sierra Leone, however, their coefficients indicated having minimal effect on RGDP as a result of the civil war.All the independent variables used in the study were statistically significant at 5% level to explain the dependent variable.It is therefore recommended once the economy of Sierra Leone depends on export of mineral resources; it is prudent coming out with proper legislation indicating the control and management of the returns from these resources to avoid another civil war in the future which in general has a negative consequence on economic growth. Additionally, adding value on all export commodities before exporting them will help boost economic growth in the country.Therefore, peace is a pre-requisite factor that attracts foreign direct investment, it is therefore suggested that the government of the country puts in place the necessary security measures to ensure everlasting peace and order to attract more foreign direct investment to help grow the domestic economy. A rigorous and quick implementation, reconstruction programs are the only way to salvage the economy of Sierra Leone after both the civil war the deadly Ebola virus.

Author: 
Bassiratu Ballay Mansaray
Journal Name: 
Int J Inf Res Rev
Volume No: 
04
Issue No: 
12
Year: 
2017
Paper Number: 
2510
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