A Granger Causality Test on the Impact of Public Debt on the Economic Growth of Sierra Leone

This study uses the grader causality, Johansen co-integration, and error correction model tests to establish relationship between public debt on economy of Sierra Leone from 1986-2015. The economic implications using government as a drive fund expansionary fiscal policy inform policymakers consider viability government-funded projects social cost pursuing them. To achieve core objective, this analyses impact Vector Autoregression (VAR) approach investigate key macroeconomic variables real GDP, Domestic Debt (DDB) External (EXT). established that growth proxied by RGDP responds differently various components debt, which were external domestic debts. Specifically, had an insignificant negative effect in Leone. other hand, significant positive growth. overall results revealed there exists long-run total