EFFECT OF INTERNATIONAL TRADE ON ECONOMIC DEVELOPMENT OF MOGADISHU, SOMALIA
Abstract
This study aimed at investigating the effects of international trade on economic development of Somalia. The study was guided by four objectives; to find out the effect of Exports on Economic development of Somalia, to investigate the effect of foreign direct investment on Economic Development of Somalia, to determine the effect of imports on the Economic Development of Somalia, to establish the effect of market expansion on the Economic development of Somalia. This study took a descriptive survey design. The researcher used a survey design method for the study. Survey design is a design in which data is collected using questionnaires. The researcher used the survey design to enable him describe or present a picture of the problem under study. This study was conducted in Mogadishu City, the capital of Somalia. In order to provide valid estimates, 384 respondents were selected with Simple random sampling and only those present at that time were chosen. The study found out that exports have a significant effect on economic development of Somalia. Regression analysis indicated that there is a significant effect of foreign direct investment on economic development of Somalia. The study findings indicated that imports have a significant effect on economic development. The study findings indicated that international trade opens new market for local goods which contributes to economic development. Basing on the results from the study it was concluded that international trade plays a significant role in the economic development of Somalia. It is in the government's best interest to keep the economy healthy by, among other things, ensuring an encouraging environment for international trade. To achieve this, the study recommended improvement of security in Somalia in order to attract foreign direct investment
Key terms: Export, Foreign Direct Investment, Import, Economic Development
CITATION: Asir, M. H., Mukhongo, A., & Datche, E. (2019). Effect of international trade on economic development of Mogadishu, Somalia. The Strategic Journal of Business & Change Management, 6 (2), 1225 –1240.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1182
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