The objective of this study is to assess the effect of trade openness on economic growth in Somalia using time series data spanning 1985-2017. The study employed multivariate cointegration and a fully modified ordinary least square (FMOLS) cointegration method to achieve the objective of the study. The empirical findings of the multivariate cointegration test detected the presence of the long-run connection among the variables in Somalia. Moreover, the findings of the FMOLS method indicated that trade openness has a negative and significant effect on economic growth in the long run in Somalia. Besides, gross capital formation and labor force stimulate economic growth in Somalia in the long run. However, the study recommends the implementation of an effective policy to turn the unfavorable effect of trade openness on economic growth.
Climate change is considered one of the most defining challenges in this century because it poses a threat to the health and well-being of every person in the world by posing a large aggregate risk to the economy. Developing and least developed countries such as Somalia are the most vulnerable countries to climate change consequences. Besides the vulnerability to climate change, government institutions in Somalia have been malfunctioning since 1991 hence affecting economic growth. Hence, this empirical work addresses the long-and short-run effects of institutional quality and climate change on economic growth in Somalia for the period 1985-2017 using the autoregressive distributed lag model (ARDL), Johansen and Juselius Cointegration, and dynamic ordinary least square (DOLS). Average temperature and rainfall, and law and order are taken as measurements of climate change and institutional quality respectively. The empirical results found that institutional quality and climate change are cointegrated into economic growth in the long run. Furthermore, average rainfall, law and order, and capital stimulate economic growth in Somalia in the long run; whereas the average temperature has a devastating effect on economic growth in the long run. Notably, law and order hamper economic growth in the short run. These results are robust for various econometric methods. However, the study proposes implementing policies related to climate adaptability and mitigation strategies, and improving institutional quality such as; law and order, government effectiveness, and bureaucratic quality, as these will confirm sustainable economic growth in the long run.
The purpose of this study is to assess how the PAKSERV paradigm affects brand loyalty, customer satisfaction, and trust in Somalia's banking industry. With an emphasis on the mediating function of trust in the Somali scenario, these comprehensive assessments stress the cultural component of quality of service. This study adopts a quantitative method by assessing 370 Islamic bank customers in Somalia for two main cities, Mogadishu and Hargeisa. Our respondents are existing and potential users of Islamic bank products and the sample was selected using the convenience sample technique. The data were examined with the quantitative method of structural equation modeling using SmartPLS 3.3.7. The study found a connection between client satisfaction, loyalty, and the PAKSERV quality of service attributes through the intermediary role of trust. In the cultural context of Islamic finance in Somalia, this study offers fresh information on how trust may function as a partial mediator in the interaction between client satisfaction and customer loyalty.
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