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Assessing the impact of urbanization, unemployment, ICT, and Climate change on economic growth in Somalia

Year: 2026

Type: article

Abstract: This study examines the impact of urbanization, unemployment, information and communication technology and climate change on Somalia’s economic growth using annual data from 1991–2022. The Autoregressive Distributed Lag (ARDL) model was employed to estimate the short-run and long-run relationships, while FMOLS, DOLS, and CCR estimators are used to verify the robustness of the long-run results, alongside Granger causality analysis. The findings reveal a stable long-run relationship, with temperature and unemployment exerting significant negative effects on economic growth, whereas urbanization has a significant positive effect. Internet shows a positive but statistically insignificant effect in the ARDL model, although robustness estimators generally support a positive long-run association. Based on these findings, the study recommends strengthening climate adaptation measures, implementing employment creation and skills development programs, promoting sustainable urbanization, and expanding digital infrastructure and ICT capacity to foster sustainable economic growth in Somalia.

Source: Cogent Economics & Finance

DOI: 10.1080/23322039.2026.2719115

Authors: Abdikadir Abdi Nor, Abdirahman Ibrahim Abas, Mohamed Ali Farah

Institution: Benadir University

Language: English

Topic: Economic Growth and Development

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Climate action, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,165