An Econometric Assessment of Livestock Export and Its Impact on Economic Growth in Somalia.

Abstract

Livestock holds a major role in Somalia’s economy as it is postulated to be the largest sector, largest employer and a major income source for most households. This research, hence studies the role of livestock exports on economic growth in Somalia. The neoclassical production function model with an extension was employed in this study and the data were taken from the food and agricultural organization and the world bank from the period 1990 to 2015. This study utilized estimations on reliable econometric models such as Engle-Granger and Johansen co-integration tests and the Granger causality test. The outcomes of the study indicate that, cattle export, Sheep export and goat export have a positive and significant relationship with economic growth, whereas exports of camel have been found to have a negative and significant impact on economic growth. Based on the findings, this study recommends for implementation of policies that advances the effectiveness of veterinary services and the competence of staff in the quest for enhancement livestock production. Moreover, the study advocates that, the government finance research activities on enhancing the value of camels as well as enhancing the quality of transports for camels.

Keywords: Livestock-Export, Economic Growth, The Engle-Granger and Johansen Cointegration test, Granger causality, Somalia