Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/81056 
Year of Publication: 
2012
Series/Report no.: 
WIDER Working Paper No. 2012/07
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
This paper examines the impact of foreign aid on economic growth in Sierra Leone, a country where an empirical econometric study on aid effectiveness is yet to exist. Using a triangulation of approaches involving the ARDL bounds test approach and the Johansen maximum likelihood approach to cointegration for the period 1970-2007, we find that foreign aid has a significant contribution in promoting economic growth in the country. This finding is found to be robust across approaches and specifications. Whilst aid may have been associated with improvement in economic growth in the country, its impact during the period of war is found to be either weak or non-existent. Further, aid during the pre-war period is found to be marginally more effective than aid during the post-war period. The latter results suggest that the impact of aid may change with time.
Subjects: 
growth
foreign aid
cointegration
Sierra Leone
ARDL
post-war
JEL: 
F35
O11
O40
O55
ISBN: 
978-929-230-470-6
Document Type: 
Working Paper

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