Author(s)

Philip Sulaiman Koroma¹, Abubakarr Jalloh², Andrew Squire²

¹Department of Accounting and Finance, Fourah Bay College (FBC), University of Sierra Leone, Freetown, Sierra Leone.
²Department of Banking and Finance, Institute of Public Administration and Management (IPAM), University of Sierra Leo-ne, Freetown, Sierra Leone.

Exchange rate fluctuation is considered in the literature as an essential driver of economic growth. This paper aims to investigate the impact of exchange rate fluctuation on economic growth of the Sierra Leone economy. As a whole, the period under consideration is a thirty-nine year period spanning from 1980 to 2018 inclusive. Previous researches show that there can be both positive and negative impact of exchange rate fluctuation on economic growth of a nation’s economy, and in this paper, we discovered that exchange rate fluctuation (depreciation of the Leones) has a positively significant relationship with economic growth in Sierra Leone. We used both ADF-test and PP-test to check for stationarity of the variables. The ordinary least square method was used to analyse data and results are based on regression analysis conducted from available data.

Exchange Rate, Economic Growth, Export, Import and Foreign Direct Investment

Koroma, P. , Jalloh, A. and Squire, A. (2023) An Empirical Examination of the Impact of Exchange Rate Fluctuation on Economic Growth in Sierra Leone. Journal of Mathematical Finance, 13, 17-31. doi: 10.4236/jmf.2023.131002.