Impact of Foreign Direct Investment (FDI) on Unemployment in Somalia

This study evaluates the impact of foreign direct investment (FDI) on unemployment in Somalia. To achieve this goal, a co-integration analysis Johansen and VAR models was conducted using annual data from 1991 to 2021. The results indicate that there is no significant long-term relationship between net inflows unemployment. Furthermore, short-term effects FDI are not significant. Based findings, it can be concluded does contribute reduction rate Therefore, governments region should aim attract labor-absorbing channel towards labor-intensive sectors with high labor-absorptive capacity, such as horticulture floriculture.