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An Empirical Investigation of the Export-Led Growth (ELG) and Import-Led Growth (ILG) Hypotheses in Sierra Leone
Research Department, Bank of Sierra Leone, Freetown, Sierra Leone
Research Department, Bank of Sierra Leone, Freetown, Sierra Leone
Research Department, Bank of Sierra Leone, Freetown, Sierra Leone
- 1 Research Department, Bank of Sierra Leone, Freetown, Sierra Leone
- 2 Research Department, Bank of Sierra Leone, Freetown, Sierra Leone
- 3 Research Department, Bank of Sierra Leone, Freetown, Sierra Leone
Modern Economy·Volume 12 (2021)·Pages 1648–1665·Published 5 November 2021·DOI10.4236/me.2021.1211083
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Abstract
This paper seeks to empirically examine the export-led growth and import-led growth hypotheses in Sierra Leone from 1980 to 2020. It employed the ARDL bounds testing approach to cointegration. The empirical results show that both the Export-led growth (ELG) and Import-led Growth (ILG) hypotheses are indeed valid in Sierra Leone. However, exports appear to be relatively more important than imports in driving economic growth in both the short and long run horizons. It is therefore recommended amongst others that the government continue to focus on strategies that will broaden the export base, while at the same time create a conducive environment for foreign investment that could result in the importation of capital goods into the country to support growth.
KeywordsExport-Led Growth (ELG)Import-Led Growth (ILG)Exchange RateEconomic GrowthARDL Model
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