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International Journal of Economics & Management Sciences

ISSN: 2162-6359

Open Access

An Analysis of the Contribution of Agriculture Sector to the Somali Economy

Abstract

Abdikani Abdullahi Sheikdon

This paper examines the contribution of agriculture sector to the economic growth in Somalia. The study is a time series data sourced from the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) and covers up to 35 years ranging from 1985 to 2017. To analyze the data the Ordinary Least Squares was employed. The empirical results exposed a positive and strong relationship between agriculture sector and Gross Domestic Product (GDP) in Somalia and estimated that it contributes 19.7 percent which is approximately 20 percent. Also 95 percent of the variation in GDP is explained by agriculture sector. At the end of analysis the paper suggests some policy recommendations.

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