Abdi, Abdikafi Hassan (2025) Determinants of agricultural exports in Somalia: the impacts of exchange rates, foreign direct investment, and institutional quality. COGENT ECONOMICS & FINANCE.
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Abstract
Globally,theexportationofagriculturalproductsplaysacriticalroleindrivingeconomic
growthandstability,oftenactingasasubstantialcontributortogrossdomesticproduct
(GDP),employment,andforeignexchangeearningsinagrarianeconomies.Asavitalpil
larofmanydevelopingcountries’economies, theagricultural sector’sexportdynamics
haveremainedunderstudied,particularlyinintegratingclimatic,economic,andinstitu
tional-relatedfactors.Thus, thisstudyexploresthedeterminantsofagriculturalexports
inSomaliabetween1985and2017.WhiletheevidencefromtheARDLbounds-testing
cointegrationanalysis indicates thatprecipitationimprovesagricultural exports inthe
long-run,theroleofagriculturalproductionwasinsignificant.Theanalysisindicatesthat
currencydepreciationcanboostexportcompetitiveness inthelong-run,whereascur
rencydepreciationmay leadtoreducedexports intheshort-run.Moreover, short-run
domestic investmentspositively impact exports, but this effect diminishes over the
long-run.Remarkably, institutionalqualityandFDI inflowsareconsistentlyidentifiedas
significantenhancersofagriculturalexports. Inaddition, theGrangercausalityanalysis
indicatesthatexchangerates, institutionalquality,andFDI inflowsunidirectionallypre
dictagriculturalexports. Followingtheoutcomesof thisexploration, thestudyrecom
mends enhancing rainwater harvesting and irrigation systems, focusing on value additionandmarketdiversification,stabilizingcurrencyforcompetitiveadvantage,and
improvinginstitutionalqualitybystreamliningFDIpolicies.
Item Type: | Article |
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Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Economics |
Depositing User: | Unnamed user with email crd@smiad.edu.so |
Date Deposited: | 10 Sep 2025 18:17 |
Last Modified: | 10 Sep 2025 18:17 |
URI: | https://repository.simad.edu.so/id/eprint/111 |