The main objective of this study is to examine the determinants of farm investment in Somalia using quarterly time-series data from 2015 to 2021. The study selected financing assets (FA), farm output (FO), credit for commercial banks (CCB), and saving (S) as macroeconomic variables. The augmented Dickey–Fuller (ADF) test was employed to evaluate the stationarity of the variables, and the Granger causality test was used to assess the causal relationship between the study variables. It was found that all variables became stationary at the second difference, with a trend for each of the three critical levels of 1%, 5%, and 10%. The Granger causality test indicates a unidirectional causal connection between farm investment, farm output, financial assets for commercial banks, savings for commercial banks, and loans for commercial banks in Somalia. The vector autoregressive (VAR) estimation revealed that the coefficient of determination explains 98% of the model, and the ordinary least squares (OLS) estimation showed a highly significant P-value. The results show that financing assets and savings will increase farm output if managed effectively and efficiently. Based on the findings, the study recommends that the government focus on the overall institutional framework in Somalia to facilitate economic growth, poverty reduction, and sustainable development.
The main objective of this study is to examine the role of digital banking services on commercial banks’ performance in Somalia. A descriptive research design was used in this study to illustrate the relationship between variables. The study selected 300 participants using stratified random sampling. The study employed the Kobo-collect tool to collect data from the field. SPSS v28 and Eviews12 data analysis tools were employed in this study. The ADF test results show that all variables are stationary in the first difference with a constant and trend for each of the three critical levels. Pearson chi-square statistics showed that the association between explanatory variables and commercial banking performance is statistically significant. Descriptive statistics showed that the skewness and kurtosis of the normal distribution of probability are best to fit and close to zero using the Jarque-Bera test. Positive kurtosis values suggest a peaked distribution with long, fatty tails, and it proposes that a large proportion of numbers are concentrated in its tails rather than its centre. The regression result gives the impression that the explanatory variables determine 86% of the overall variance in commercial banks’ performance. The correlation results showed a strong and significant positive correlation between digital banking service delivery and commercial banks' performance in Mogadishu, Somalia.
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