ECONOMIC GROWTH AND POVERTY REDUCTION

Today there is a great challenge in explaining the contemporary economic developing processes and one of the greatest contradictions are the fact that many countries do experience economic growth, but yet they suffer from the severe bearings of poverty. This paper attempts to identify the relationship between the economic growth and poverty in Sierra Leone. This study used econometrics regression analysis by constructing multivariate linear regression model based on time series study design under the period 1995-2012. Our main findings of this study are: (i) indeed economic growth has a positive effect of reducing poverty in the country under study. (ii) Agriculture value addition as share of Gross Domestic Product (GDP) has no power to reduce poverty if appropriate policy that has to do with income distribution by government is not implemented. The study concluded with some policy options, the policies should be such that would emphasis on the income distribution from agriculture sector efficient strategy given its ability to reduce poverty by increasing employment and improving the opportunities for productive activities among the poor more especially the farmers