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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.
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.
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.
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