Determinants of farm investment in Somalia: A var model application

The main objective of this study is to examine the determinants farm investment in Somalia using quarterly time-series data from 2015 2021. selected financing assets (FA), output (FO), credit for commercial banks (CCB), and saving (S) as macroeconomic variables. augmented Dickey–Fuller (ADF) test was employed evaluate stationarity variables, Granger causality used assess causal relationship between It found that all variables became stationary at second difference, with a trend each three critical levels 1%, 5%, 10%. indicates unidirectional connection investment, output, financial banks, savings loans Somalia. vector autoregressive (VAR) estimation revealed coefficient determination explains 98% model, ordinary least squares (OLS) showed highly significant P-value. results show will increase if managed effectively efficiently. Based on findings, recommends government focus overall institutional framework facilitate economic growth, poverty reduction, sustainable development.