As defined by Winston (2006), “market failure is an equilibrium allocation of resources that is n... more As defined by Winston (2006), “market failure is an equilibrium allocation of resources that is not Pareto Optimal – the potential causes of which may be market power, natural monopoly, imperfect information, externalities, or public good.” In this context, the Pareto Optimality or efficiency paradigm states that for microeconomic efficiency to be achieved, there should be no room to make one person better-off without making another worse-off.
İktisat Politikası Araştırmaları Dergisi - Journal of Economic Policy Researches, 2020
The main research question of this paper is to assess Sierra Leone's preparedness for adopting a ... more The main research question of this paper is to assess Sierra Leone's preparedness for adopting a fully-fledged or lite Inflation Targeting (IT) framework amid macroeconomic and structural bottlenecks experienced in the domestic economy. Several theoretical and empirical perspectives were reviewed to bring out cogent insights on the subject matter. With the use of the Unrestricted Vector Autoregression (VAR) model, relevant macroeconomic variables ranging from 2010Q2 to 2019Q4 were utilised to assess plausible outcomes, aided with some iterative shock impulses, variance decomposition, and historical decomposition, to explain the reaction of inflation to specific factors in Sierra Leone. The study outcome suggests that Sierra Leone as a supply-driven economy is inducing a high level of inflation on account of the pass-through effect of high prices to consumers in the domestic economy. This to a greater extent is undermining monetary policy management, which gives credence to the fact that authorities at the Bank of Sierra Leone should not switch to inflation targeting in the short and medium-term on the basis that monetary policy actions could instigate further price increases of goods and services, underpinned by weak real sector operations and a somewhat dollarized domestic market. At best, there is a need for BSL to continue its current policy methodology, while working in ensuring monetary policy actions are transparent and well communicated at all times to getting inflation to a single-digit.
In this paper, we have utilized combination of econometric methodologies (Granger Causality and A... more In this paper, we have utilized combination of econometric methodologies (Granger Causality and Autoregressive technique) to study the dynamic effects of inflation shocks in Sierra Leone, with 2007M01-2012019M03 as the scoping period. The objectives which include an examination of the existence of cointegration between CPI and other macroeconomic variables, determination of short and long run relationships and the effects of shocks using Impulse Responses and Variance Decomposition were thoroughly addressed as part of the empirical findings. To start with, outcome from Johansen Cointegration test revealed no evidence of cointegration between the variables, while the ultimate use of unrestricted VAR methodology to assess the model’s use for economic policy prescription using impulse response and variance decomposition shows that, with the application of a five-period shock, inflation is likely to show a downward trend. The major outcome from this study shows signs of persistent suppl...
Views expressed in this chapter are those of the authors and do not reflect any of the named inst... more Views expressed in this chapter are those of the authors and do not reflect any of the named institutions for which they are associated. SYNONYMS Comparative advantage Subsidized industries Protectionist policy Economic Transformation DEFINITION(S) i. Import substitution industrialization (ISI) is an industrial development program based on the protection of local infant industries through protective tariffs, import quotas, exchange rate controls, special preferential licensing for capital goods imports, subsidized loans to local infant industries, etc. (Ogujiuba et al, 2011). ii. Import substitution industrialization (ISI) is a theory of economics typically adhered to by developing countries or emerging-market nations that seek to decrease their dependence on developed countries (Segal, 2019). The above definitions have provided some basis on which ISI was developed; this is simply to capacitate means for less developed and emerging market economies to channel ways of becoming self-sufficient in their efforts to harness industrial growth and development. It is a form of selfactualization to enhance prospects in reducing high dependence on the importation of essential goods from the rest of world, thereby creating opportunities through which less favourable and emerging economies can create the capacity to commence industrial production. The focus of this chapter is be broadly aligned to the first highlighted definition going forward, particularly in reference to the 'Applicability of ISI to Africa'. ISI is an integral part of Sustainable Development Goals Agenda nine (SDG9). Hence, there is a need for economic diversification and structural transformation to be set as a core objective in national / domestic infrastructural growth that favours consumption of locally produced goods and services in the short run (see Cleeve, 2010). At the same time, strategic focus should be dedicated in accommodating an open-economy policy to diversifying industrial capacity, with the motive of increasing export promotion in the long-run as emphasised in an IMF staff discussion paper produced by Fabrizio et al (2015).
This paper attempts to empirically validate the Purchasing Power Parity (PPP) theory in the conte... more This paper attempts to empirically validate the Purchasing Power Parity (PPP) theory in the context of Sierra Leone. To achieve this objective, cointegration and error correction techniques were utilized to account for both long and short-run dynamics over the period 2007Q1 to 2019Q1. The Engel-Granger cointegration technique was utilized to ascertain the long-run relationship between the exchange rate and the price differential between Sierra Leone and the United States of America, while the redundant variable test was used to attain the parsimonious short-run error correction model. The results indicated a cointegrating relationship, while the coefficient on the price differential was greater than one (1), reflecting that the PPP does not hold for Sierra Leone. Moreover, the short-run results showed a rejection of the theory and rather endorses the presence of depreciation inertia, where past depreciation of the exchange rate is a major determinant of its current depreciating trend.
İktisat Politikası Araştırmaları Dergisi - Journal of Economic Policy Researches, 2020
This paper examines the assertion of twin deficit hypothesis as an indication of government (poli... more This paper examines the assertion of twin deficit hypothesis as an indication of government (policy) failure in Sierra Leone through the utilisation of relevant variables from 1980-2018. The paper is considered very important, with its application to the economy of Sierra Leone, which seems to have battled with structural problems, particularly policy failures, as manifested through over-burdened current account and fiscal deficit, which is presently overshadowing efforts of changedregime to make headway with planned developmental goals. Theoretical and empirical literature was reviewed in relation to the twin deficit hypothesis. Empirical outcome using the Fully Modified Ordinary Least Squares (FMOLS) failed to reject the twin deficit hypothesis; an indication that fiscal deficit is partly responsible for the negative current account position in Sierra Leone. Evidence from the outcome is consistent with expectation for a small open economy [Sierra Leone], burdened with failed institutional governance policies in areas connected with unproductive real sector and high lending rates, considered as disincentive to private sector investments. To address the problem, policy recommendations have been proposed, pointing to a boost in real sector activities-this will help facilitate growth and mobilisation drive to improve domestic revenue collection, also channelled through the Treasury Single Account (TSA) for effective monitoring. Conscious efforts should be made to stepup operations that deter corruption, while firming up efforts to to boost exports through competitive business operations.
In this paper, the researchers have developed a short-term inflation forecasting (STIF) model usi... more In this paper, the researchers have developed a short-term inflation forecasting (STIF) model using Box-Jenkins time series approach (ARIMA) for analysing inflation and associated risks in Sierra Leone. The model is aided with fan charts for all thirteen components, including the Headline CPI as communication tools to inform the general public about uncertainties that surround price dynamics in Sierra Leonethis then make it possible for policy makers to utilise expert judgments in a bid to stabilize the economy. The uniqueness of this paper is its interpretation of risks to each of the disaggregated components, while also improving credibility of decisions taken by policy makers at the Bank of Sierra Leone [BSL]. Empirically, Food and Non-Alcoholic Beverages, Housing and Health components indicate that shock arising from within or outside of Sierra Leone can significantly impact headline CPI, with immediate pass-through effect of high prices on consumers' spending, at least in the short-run. The outcome of this empirical research shows uniqueness of the disaggregated model in tailoring policy makers' attention towards targeting sector-specific policy interventions. Fan Charts produced have also highlighted degree of risks, which is based on confidence bands, which shows deviation from the baseline forecast. The ultimate goal is to improve sectoral productive capacity, while at the same time, monitoring price volatility spill-over through empirical disaggregation of the CPI basketin association with this, outcome from the study also shows that the use of multivariate models like VAR would be welcome to monitor events on price dynamics in the national economy.
Encyclopedia of the UN Sustainable Development Goals
The topical discourse of intersectionality is a growing area of importance to dealing with issues... more The topical discourse of intersectionality is a growing area of importance to dealing with issues around marginalisation experienced by black women and women-of-color around the world. It may seem obvious that the way forward in addressing issues around the subject of intersectionality, given its multidimensional focus, is to be very sensitive, while also acknowledging the need to explore the silence of those that have being traumatized through the pain of psychological subjection. Its emergence in the late 1980s to the early 1990s was borne out of a critical viewpoint of its founding legal scholar, Kimberle ́ Crenshaw (1989: 139), whose intention was based around the need to develop an objective standpoint about the legal issues revolving around color-blindness, neutrality, and objectivity (Nash, 2008: 2). There has been a lot of critique on the narrowly held discourse, which to some scholars is modelled on a singular dimension of “race and gender". While to the hardcore of black feminists and anti-racist critics, it goes beyond the singular dimensional discourse, given the need for blacks and women of color to continually raise their concerns around the hegemony of white feminists, hence making it quite difficult for there to be a uni-directional journey on the effort to address marginality. Addressing issues around the subject matter can be viewed as a form of mathematical puzzle, with its vector interconnectedness of synthesizing a common methodological solution on the way forward.
Encyclopedia of the UN Sustainable Development Goals, Nov 8, 2019
According to the Upside-Down Organization (UDO) (n.d.), "transformational education is the develo... more According to the Upside-Down Organization (UDO) (n.d.), "transformational education is the development of an intentional, aligned and integrated culture that radiate the beliefs, values and life skills children and youths require to be successful." It is believed that education of such nature has a philosophical bearing to the concept, because it promotes a thinking approach for adults that leads to successful outcomes for children and youths. Moreover, it provides leaders with a blueprint for recognizing, building, and upholding a transformational culture (UDO n.d.). Education in its entirety is all about transformation. However, such transformation should serve as a springboard for personal growth and development, innovation, and capacity to influence positive and lasting changes in society. Therefore, it should be finetuned in a way that inculcate competencies that have transmuting properties, in transcending the normal way of thinking, or doing business. On this note, transformational competencies can be defined as inclusive development and nurturing of skills, capabilities, or capacities that promote innovation, creativity, and entrepreneurship for sustainable growth and development.
As defined by Winston (2006), “market failure is an equilibrium allocation of resources that is n... more As defined by Winston (2006), “market failure is an equilibrium allocation of resources that is not Pareto Optimal – the potential causes of which may be market power, natural monopoly, imperfect information, externalities, or public good.” In this context, the Pareto Optimality or efficiency paradigm states that for microeconomic efficiency to be achieved, there should be no room to make one person better-off without making another worse-off.
İktisat Politikası Araştırmaları Dergisi - Journal of Economic Policy Researches, 2020
The main research question of this paper is to assess Sierra Leone's preparedness for adopting a ... more The main research question of this paper is to assess Sierra Leone's preparedness for adopting a fully-fledged or lite Inflation Targeting (IT) framework amid macroeconomic and structural bottlenecks experienced in the domestic economy. Several theoretical and empirical perspectives were reviewed to bring out cogent insights on the subject matter. With the use of the Unrestricted Vector Autoregression (VAR) model, relevant macroeconomic variables ranging from 2010Q2 to 2019Q4 were utilised to assess plausible outcomes, aided with some iterative shock impulses, variance decomposition, and historical decomposition, to explain the reaction of inflation to specific factors in Sierra Leone. The study outcome suggests that Sierra Leone as a supply-driven economy is inducing a high level of inflation on account of the pass-through effect of high prices to consumers in the domestic economy. This to a greater extent is undermining monetary policy management, which gives credence to the fact that authorities at the Bank of Sierra Leone should not switch to inflation targeting in the short and medium-term on the basis that monetary policy actions could instigate further price increases of goods and services, underpinned by weak real sector operations and a somewhat dollarized domestic market. At best, there is a need for BSL to continue its current policy methodology, while working in ensuring monetary policy actions are transparent and well communicated at all times to getting inflation to a single-digit.
In this paper, we have utilized combination of econometric methodologies (Granger Causality and A... more In this paper, we have utilized combination of econometric methodologies (Granger Causality and Autoregressive technique) to study the dynamic effects of inflation shocks in Sierra Leone, with 2007M01-2012019M03 as the scoping period. The objectives which include an examination of the existence of cointegration between CPI and other macroeconomic variables, determination of short and long run relationships and the effects of shocks using Impulse Responses and Variance Decomposition were thoroughly addressed as part of the empirical findings. To start with, outcome from Johansen Cointegration test revealed no evidence of cointegration between the variables, while the ultimate use of unrestricted VAR methodology to assess the model’s use for economic policy prescription using impulse response and variance decomposition shows that, with the application of a five-period shock, inflation is likely to show a downward trend. The major outcome from this study shows signs of persistent suppl...
Views expressed in this chapter are those of the authors and do not reflect any of the named inst... more Views expressed in this chapter are those of the authors and do not reflect any of the named institutions for which they are associated. SYNONYMS Comparative advantage Subsidized industries Protectionist policy Economic Transformation DEFINITION(S) i. Import substitution industrialization (ISI) is an industrial development program based on the protection of local infant industries through protective tariffs, import quotas, exchange rate controls, special preferential licensing for capital goods imports, subsidized loans to local infant industries, etc. (Ogujiuba et al, 2011). ii. Import substitution industrialization (ISI) is a theory of economics typically adhered to by developing countries or emerging-market nations that seek to decrease their dependence on developed countries (Segal, 2019). The above definitions have provided some basis on which ISI was developed; this is simply to capacitate means for less developed and emerging market economies to channel ways of becoming self-sufficient in their efforts to harness industrial growth and development. It is a form of selfactualization to enhance prospects in reducing high dependence on the importation of essential goods from the rest of world, thereby creating opportunities through which less favourable and emerging economies can create the capacity to commence industrial production. The focus of this chapter is be broadly aligned to the first highlighted definition going forward, particularly in reference to the 'Applicability of ISI to Africa'. ISI is an integral part of Sustainable Development Goals Agenda nine (SDG9). Hence, there is a need for economic diversification and structural transformation to be set as a core objective in national / domestic infrastructural growth that favours consumption of locally produced goods and services in the short run (see Cleeve, 2010). At the same time, strategic focus should be dedicated in accommodating an open-economy policy to diversifying industrial capacity, with the motive of increasing export promotion in the long-run as emphasised in an IMF staff discussion paper produced by Fabrizio et al (2015).
This paper attempts to empirically validate the Purchasing Power Parity (PPP) theory in the conte... more This paper attempts to empirically validate the Purchasing Power Parity (PPP) theory in the context of Sierra Leone. To achieve this objective, cointegration and error correction techniques were utilized to account for both long and short-run dynamics over the period 2007Q1 to 2019Q1. The Engel-Granger cointegration technique was utilized to ascertain the long-run relationship between the exchange rate and the price differential between Sierra Leone and the United States of America, while the redundant variable test was used to attain the parsimonious short-run error correction model. The results indicated a cointegrating relationship, while the coefficient on the price differential was greater than one (1), reflecting that the PPP does not hold for Sierra Leone. Moreover, the short-run results showed a rejection of the theory and rather endorses the presence of depreciation inertia, where past depreciation of the exchange rate is a major determinant of its current depreciating trend.
İktisat Politikası Araştırmaları Dergisi - Journal of Economic Policy Researches, 2020
This paper examines the assertion of twin deficit hypothesis as an indication of government (poli... more This paper examines the assertion of twin deficit hypothesis as an indication of government (policy) failure in Sierra Leone through the utilisation of relevant variables from 1980-2018. The paper is considered very important, with its application to the economy of Sierra Leone, which seems to have battled with structural problems, particularly policy failures, as manifested through over-burdened current account and fiscal deficit, which is presently overshadowing efforts of changedregime to make headway with planned developmental goals. Theoretical and empirical literature was reviewed in relation to the twin deficit hypothesis. Empirical outcome using the Fully Modified Ordinary Least Squares (FMOLS) failed to reject the twin deficit hypothesis; an indication that fiscal deficit is partly responsible for the negative current account position in Sierra Leone. Evidence from the outcome is consistent with expectation for a small open economy [Sierra Leone], burdened with failed institutional governance policies in areas connected with unproductive real sector and high lending rates, considered as disincentive to private sector investments. To address the problem, policy recommendations have been proposed, pointing to a boost in real sector activities-this will help facilitate growth and mobilisation drive to improve domestic revenue collection, also channelled through the Treasury Single Account (TSA) for effective monitoring. Conscious efforts should be made to stepup operations that deter corruption, while firming up efforts to to boost exports through competitive business operations.
In this paper, the researchers have developed a short-term inflation forecasting (STIF) model usi... more In this paper, the researchers have developed a short-term inflation forecasting (STIF) model using Box-Jenkins time series approach (ARIMA) for analysing inflation and associated risks in Sierra Leone. The model is aided with fan charts for all thirteen components, including the Headline CPI as communication tools to inform the general public about uncertainties that surround price dynamics in Sierra Leonethis then make it possible for policy makers to utilise expert judgments in a bid to stabilize the economy. The uniqueness of this paper is its interpretation of risks to each of the disaggregated components, while also improving credibility of decisions taken by policy makers at the Bank of Sierra Leone [BSL]. Empirically, Food and Non-Alcoholic Beverages, Housing and Health components indicate that shock arising from within or outside of Sierra Leone can significantly impact headline CPI, with immediate pass-through effect of high prices on consumers' spending, at least in the short-run. The outcome of this empirical research shows uniqueness of the disaggregated model in tailoring policy makers' attention towards targeting sector-specific policy interventions. Fan Charts produced have also highlighted degree of risks, which is based on confidence bands, which shows deviation from the baseline forecast. The ultimate goal is to improve sectoral productive capacity, while at the same time, monitoring price volatility spill-over through empirical disaggregation of the CPI basketin association with this, outcome from the study also shows that the use of multivariate models like VAR would be welcome to monitor events on price dynamics in the national economy.
Encyclopedia of the UN Sustainable Development Goals
The topical discourse of intersectionality is a growing area of importance to dealing with issues... more The topical discourse of intersectionality is a growing area of importance to dealing with issues around marginalisation experienced by black women and women-of-color around the world. It may seem obvious that the way forward in addressing issues around the subject of intersectionality, given its multidimensional focus, is to be very sensitive, while also acknowledging the need to explore the silence of those that have being traumatized through the pain of psychological subjection. Its emergence in the late 1980s to the early 1990s was borne out of a critical viewpoint of its founding legal scholar, Kimberle ́ Crenshaw (1989: 139), whose intention was based around the need to develop an objective standpoint about the legal issues revolving around color-blindness, neutrality, and objectivity (Nash, 2008: 2). There has been a lot of critique on the narrowly held discourse, which to some scholars is modelled on a singular dimension of “race and gender". While to the hardcore of black feminists and anti-racist critics, it goes beyond the singular dimensional discourse, given the need for blacks and women of color to continually raise their concerns around the hegemony of white feminists, hence making it quite difficult for there to be a uni-directional journey on the effort to address marginality. Addressing issues around the subject matter can be viewed as a form of mathematical puzzle, with its vector interconnectedness of synthesizing a common methodological solution on the way forward.
Encyclopedia of the UN Sustainable Development Goals, Nov 8, 2019
According to the Upside-Down Organization (UDO) (n.d.), "transformational education is the develo... more According to the Upside-Down Organization (UDO) (n.d.), "transformational education is the development of an intentional, aligned and integrated culture that radiate the beliefs, values and life skills children and youths require to be successful." It is believed that education of such nature has a philosophical bearing to the concept, because it promotes a thinking approach for adults that leads to successful outcomes for children and youths. Moreover, it provides leaders with a blueprint for recognizing, building, and upholding a transformational culture (UDO n.d.). Education in its entirety is all about transformation. However, such transformation should serve as a springboard for personal growth and development, innovation, and capacity to influence positive and lasting changes in society. Therefore, it should be finetuned in a way that inculcate competencies that have transmuting properties, in transcending the normal way of thinking, or doing business. On this note, transformational competencies can be defined as inclusive development and nurturing of skills, capabilities, or capacities that promote innovation, creativity, and entrepreneurship for sustainable growth and development.
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