The Determinants of Foreign Direct Investment in Somalia
This study examines determinants of foreign direct investment in Somalia, measured foreign direct investment inflow (FDI). Used time series data obtained from World Bank and SESRIC for a period of 41 years that is 1970 to 2010. Augmented Dickey-Fuller (ADF) test was used for the unit root test and o...
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| Format: | Article |
| Language: | English |
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EconJournals
2017-09-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/32021/354318?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1797912077418889216 |
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| author | Mohamed Isse Ibrahim Zahir Mohamed Omar Yassin Sheikh Ali |
| author_facet | Mohamed Isse Ibrahim Zahir Mohamed Omar Yassin Sheikh Ali |
| author_sort | Mohamed Isse Ibrahim |
| collection | DOAJ |
| description | This study examines determinants of foreign direct investment in Somalia, measured foreign direct investment inflow (FDI). Used time series data obtained from World Bank and SESRIC for a period of 41 years that is 1970 to 2010. Augmented Dickey-Fuller (ADF) test was used for the unit root test and ordinary Least Square statistical technique was used to assess the degree of influence the variables have on each other. The results show a negative and significant relationship in exchange rate and FDI, while, a positive and significant relationship is observed between inflation, external debt and domestic investment of FDI. Also a negative but insignificant relationship is observed between lack of government and gross domestic product FDI. Therefore, there is need for the government to retain tight monetary and fiscal policies in order to attract foreign direct investment. This study therefore recommends that central bank of Somalia should control the fluctuations of the exchange rate in order to increase the FDI. Since the inflation is higher, the study also recommends having a good government to recover the financial institutions that manage the monetary policy of Somalia. |
| first_indexed | 2024-04-10T11:50:45Z |
| format | Article |
| id | doaj.art-8ad5391706514070829b3e3b36deac5d |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:50:45Z |
| publishDate | 2017-09-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-8ad5391706514070829b3e3b36deac5d2023-02-15T16:17:08ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-09-01737137201032The Determinants of Foreign Direct Investment in SomaliaMohamed Isse IbrahimZahir Mohamed OmarYassin Sheikh AliThis study examines determinants of foreign direct investment in Somalia, measured foreign direct investment inflow (FDI). Used time series data obtained from World Bank and SESRIC for a period of 41 years that is 1970 to 2010. Augmented Dickey-Fuller (ADF) test was used for the unit root test and ordinary Least Square statistical technique was used to assess the degree of influence the variables have on each other. The results show a negative and significant relationship in exchange rate and FDI, while, a positive and significant relationship is observed between inflation, external debt and domestic investment of FDI. Also a negative but insignificant relationship is observed between lack of government and gross domestic product FDI. Therefore, there is need for the government to retain tight monetary and fiscal policies in order to attract foreign direct investment. This study therefore recommends that central bank of Somalia should control the fluctuations of the exchange rate in order to increase the FDI. Since the inflation is higher, the study also recommends having a good government to recover the financial institutions that manage the monetary policy of Somalia.https://dergipark.org.tr/tr/pub/ijefi/issue/32021/354318?publisher=http-www-cag-edu-tr-ilhan-ozturkexchange rate foreign direct investments somalia |
| spellingShingle | Mohamed Isse Ibrahim Zahir Mohamed Omar Yassin Sheikh Ali The Determinants of Foreign Direct Investment in Somalia International Journal of Economics and Financial Issues exchange rate foreign direct investments somalia |
| title | The Determinants of Foreign Direct Investment in Somalia |
| title_full | The Determinants of Foreign Direct Investment in Somalia |
| title_fullStr | The Determinants of Foreign Direct Investment in Somalia |
| title_full_unstemmed | The Determinants of Foreign Direct Investment in Somalia |
| title_short | The Determinants of Foreign Direct Investment in Somalia |
| title_sort | determinants of foreign direct investment in somalia |
| topic | exchange rate foreign direct investments somalia |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/32021/354318?publisher=http-www-cag-edu-tr-ilhan-ozturk |
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