The Governance-Development Nexus in Sierra Leone: Exploring Institutional Path to Human Progress

This study examines the long-term effects of governance indicators on human development in Sierra Leone. The analysis utilizes a 20-year dataset covering the period 2004 to 2023, allowing for an assessment of how sustained changes in governance quality have influenced human development outcomes in the country over time. Data for governance indicators were obtained from World Governance Indicators produced by the World Bank, whereas human development data were obtained from the UNICEF’s human development index. The study employed the Autoregressive Distributed Lag (ARDL) modeling technique. Unlike in the short-run that shows that governance indicators do not impact HDI, the results indicate that control of corruption and rule of law exert statistically significant long-term effects on human development in Sierra Leone, while the other governance indicators are statistically insignificant. Overall, these findings highlight the pivotal role of corruption control and legal integrity as foundational drivers of sustained human development in Sierra Leone. Consistent efforts to strengthen anti-corruption measures and uphold legal institutions are associated with measurable improvements in key human development dimensions, including education, health, and income. Additionally, these findings highlight the need for governance reforms that focus on enhancing political stability, improving regulatory quality, and addressing inefficiencies in government expenditure, ensuring proper financial management. The policymakers should focus on creating a situation that promotes good governance.