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The Impact of Imports and Exports Performance on the Economic Growth of Somalia

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  • Ali Abdulkadir Ali
  • Ali Yassin Sheikh Ali
  • Mohamed Saney Dalmar

Abstract

In this paper the impact of exports and imports on the economic growth of Somalia over the period 1970-1991 was investigated. The study applied econometric methods such as Ordinary Least Squares technique. The Granger Causality and Johansen Co-integration tests were also used for analysing the long term association. By using Augmented Dickey-Fuller (ADF) and Phillip-Perron (PP) stationarity test, the variables proved to be integrated of the order one 1(1) at first difference. Johansen test of co-integration was used to determine if there is a long run association in the variables. To determine the direction of causality among the variables, both in the long and short run, the Pair-wise Granger Causality test was carried out. It was found that economic growth does not Granger Cause Export but was found hat export Granger Cause GDP. So this implies that there is unidirectional causality between exports and economic growth. Also there is bidirectional Granger Causality between import and export. The results show that economic growth in Somalia requires export-led growth strategy as well as export led import. Imports and exports are thus seen as the source of economic growth in Somalia.

Suggested Citation

  • Ali Abdulkadir Ali & Ali Yassin Sheikh Ali & Mohamed Saney Dalmar, 2018. "The Impact of Imports and Exports Performance on the Economic Growth of Somalia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(1), pages 110-119, January.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:1:p:110-119
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    References listed on IDEAS

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    1. P. K. Mishra, 2011. "The Dynamics of Relationship between exports and economic growth in India," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 4(2), pages 53-70, August.
    2. Ramos, Francisco F. Ribeiro, 2001. "Exports, imports, and economic growth in Portugal: evidence from causality and cointegration analysis," Economic Modelling, Elsevier, vol. 18(4), pages 613-623, December.
    3. Khaled R.M. ELBEYDI & Abdulbaset M. HAMUDA & Vladimir GAZDA, 2010. "The Relationship between Export and Economic Growth in Libya Arab Jamahiriya," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 1(1(542)), pages 69-76, January.
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    Cited by:

    1. Heppi Millia & Muh. Syarif & Pasrun Adam & Manat Rahim & Gamsir Gamsir & Rostin Rostin, 2021. "The Effect of Export and Import on Economic Growth in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 11(6), pages 17-23.
    2. Bakari, Sayef & Khalfallah, Sirine & Zidi, Ahmed, 2021. "The Determinants of Agricultural Exports: Empirical Validation for the Case of Tunisia," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(3), October.
    3. Adriana Peluffo & Mauricio Suárez & Alvaro Brunini, 2022. "Industrial Policy in Uruguay: Which are the effects?," Asociación Argentina de Economía Política: Working Papers 4584, Asociación Argentina de Economía Política.
    4. Nyoni, Thabani, 2019. "Exports and imports in Zimbabwe: recent insights from artificial neural networks," MPRA Paper 96906, University Library of Munich, Germany.
    5. Channew Maneerat & Snober Fazal, 2020. "The Influence of Tax Revenue, Government Expenditures, Fiscal Decentralization, Carbon Emission and Exports on Economic Growth of Developing Countries," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 1(2), pages 1-12, June.
    6. Costantiello, Alberto & Laureti, Lucio & Leogrande, Angelo, 2021. "Estimation and Machine Learning Prediction of Imports of Goods in European Countries in the Period 2010-2019," MPRA Paper 108663, University Library of Munich, Germany, revised 05 Jul 2021.

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    More about this item

    Keywords

    export; import; economic growth; Somalia;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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