STUDENT DECLARATION

I declare that this senior project entitled " The impact of infrastructure development on
economic growth in Mogadishu” is the result of my own research except as cited in the
references. the senior project has not been accepted for any degree and is not concurrently
submitted in candidature of any other degree.

Name of the Candidate: CABDILAHI MOHAMED SALEBAN

Signature: ............................................................................................

Date: ............. /.................. /…………….............

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SUPERVİSOR APPROVAL
I hereby declare that I have read this senior project and, in my opinion, this senior project is
sufficient in terms of scope and quality for the award of Bachelor Degree of Economics and
I accepted for the submission to the examining panel.

Name: Mr. Abdifatah Abubakar Ahmed

Signature: ___________________________

Date: _______ /________ /______________

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EXAMINING PANEL APPROVAL
This senior project entitled " The impact of infrastructure development on economic
growth in Mogadishu” Prepared and Submitted by: CABDILAHI MOHAMED
SALEBAN in partial fulfillment of the requirement for the award of Bachelor degree of
Economics has been examined and accepted by examining panel.

Name and Signature of Chairman of Examining Panel

_____________________________________________________________

Name and Signature of Panelist

_____________________________________________________________

Name and Signature of Dean Faculty of Business Administration

_____________________________________________________________

Date: __________ /_________ /________________

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DEDICATION
This project is dedicated to my family, especially to my father peace and blessings of Allah
are on his. And also, I dedicate this research to my beloved parents, Brothers and my
supervisor, for his encouragement, material and moral support, without them my studies
would not have been a success. To my dear brothers and sisters together with my colleagues
and friends, I say sincerely, Thank you.

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ACKNOWLEDGMENT
All praise and gratitude be given to ALLAH for giving me such a great strength, patience,
courage and ability to complete this senior project. All praise is to Holy Prophet Muhammad
(Peace be upon him), the city of knowledge. I send my sincere appreciation to my supervisor
Mr. Abdifatah Abubakar Ahmed for his guidance and commitment throughout the
conception and production of this work, without his academic and technical expertise and
valuable advice, this project would not have been possible. My profound thanks go to my
family members, dear father, brothers and sisters for their moral and financial support, and
their unforgettable hand during my study time. Also, I would like to thank my friends who
were very helpful and understanding in many of my situation. Their support and
encouragement and helped me a lot in completing this project successfully.

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TABLE OF CONTENTS

CHAPTER ONE..............................................................................................................................

1.0Introduction.............................................................................................................................

1.1Background of the study.........................................................................................................

1.2 Problem statement..................................................................................................................

1.3 Research purposes..................................................................................................................

1.4 Research objectives................................................................................................................

1.4.1 General objective............................................................................................................

1.4.2 Specific objective............................................................................................................

1.5 Research questions.................................................................................................................

1.6 Significance of the study........................................................................................................

1.7 Scope of the study..................................................................................................................

1.8 Conceptual framework...........................................................................................................

1.9 Operational definitions...........................................................................................................

CHAPTER TWO.............................................................................................................................

Literature Riview.............................................................................................................................

2.0 Introduction............................................................................................................................

2.1 Ports development and economic growth..............................................................................

2.2 Energy infrastructure and economic growth........................................................................

2.3 Roads infrastructure development.......................................................................................

2.4 Relationship between roads development and economic growth........................................

CHAPTER THREE.......................................................................................................................

RESEARCH METHODOLOGY...................................................................................................

3.0 Introduction..........................................................................................................................

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 3.1 Research design...................................................................................................................

3.2 research population..............................................................................................................

3.3 Sample size..........................................................................................................................

3.4 Sampling procedure.............................................................................................................

3.5 Research instrument.............................................................................................................

3.6 Data gathering procedure.....................................................................................................

3.7 Data Analysis.......................................................................................................................

CHAPTER FOUR..........................................................................................................................

DATA PRESENTATION, ANALYSIS AND INTERPRETATION...........................................

4.0 Introduction..........................................................................................................................

4.1. Demographic characteristics of the respondents.................................................................

CHAPTER FIVE...........................................................................................................................

FINDINGS, CONCLUSION AND RECOMMENDATIONS......................................................

5.0 Introduction..........................................................................................................................

5.1 Summary of findings............................................................................................................

5.2 Conclusion...........................................................................................................................

5.3 Recommendations................................................................................................................

REFERENCES..............................................................................................................................

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LIST OF TABLES

Table 4.1.1 Gender of the respondents

Table 4.1.2 Age of the respondents

Table 4.1.3 Educational level of the respondents

Table 4.1.4 Marital of the respondents

Table 4.1.5 Experience of the respondent

Table 4.2.1 Rural areas with a good road infrastructure will experience growth of
agricultural productivity

Table 4.2.2 Transport infrastructure is widely thought to promote growth

Table 4.2.3 Roads infrastructure is a long-term investment which may take several years to
be completed and is regarded as a multi-year’s project

Table 4.2.4 Roads development makes crucial contribution to economic growth and
fighting against

Table 4.2.5 Does Road development has also been uneven between rural and urban areas
and to increase economic growth

Table 4.2.6 Energy is commonly defined as a lifeblood of the global economy the Oxygen
of the Economy

Table 4.2.7 Which relationship between for lagged values of crude oil, electricity
consumption and real GDP

Table 4.2.8 policy contribute to growth by ensuring that the resulting energy mix is
delivered Energy

Table 4.2.9 the expansion of Renewable Energy Sources is a viable solution to tackle
energy security and climate change

Table 4.2.10 does stable energy sector is one of the most essential requirements for
successful economic growth

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Table 4.2.11 Does Ports facilitate socio-economic infrastructure and generate external
economies that are often not visible to the general public.

Table 4.2.12 Quality of port has a positive effect

Table 4.2.13 Corporatization of port authorities is a critical reform step for improving port
Governance and efficiency

Table 4.2.14 does the existence of seaports contributes to the economic growth

Table 4.2.15 Lack of infrastructure contributes

Table 4.2.16 Economic growth is an increase in the production of goods and services in an
economy

Table 4.2.17 Economic growth improves the quality of our

Table 4.2.18 Economic Growth can be measured through an increase

Table 4.2.19 Does Economic growth is the best indicator of prosperity

Table 4.2.20 Economic growth creates more profit for businesses

Table 4.3 Descriptive statistics

Table 4.5 Correlations

Table 4.6 Correlations Between

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 ABSTRACT
The collapse of the Somali State during the civil war culminated in the destruction of public
infrastructure assets and systems including roads, seaports, airports, energy In Mogadishu,
there are several private institutions that offer some of infrastructures such as water and
electricity but government has very little impact on these institutions. There is no large
number of studies that are available to this topic. Therefore, this study is aimed to bridge the
literature gap and find out the impact of infrastructure development on economic growth in
Somalia. The Main objectives of this study to investigate the impact of infrastructure
development on economic growth in Mogadishu. The Study was conducted cross sectional
data through conduct descriptive research design for using quantitative variable through
questionnaire method. So, this study will use Accessible population in the study
of Somali chamber of commerce and buruuj  construction company which are private and
public owned institutions respectively. The total population of the two institutions is 191 The
sample size of the study were 36 respondents; the research selected the respondents by using
probability sampling technique especially random sampling and also data analysis was made
by using Statistical Package for social science SPSS version 22 to present the data analyses.
This study found that infrastructure has strong positive relationship with economic growth by
creating good infrastructure will increase economic growth. Thus it can be concluded that
infrastructure is important generally and particularly. It was therefore, recommended The
government must pay special attention to the formulation of specific policies in order to
attract foreign direct investments in the country which would also enhance Infrastructure
and promote economic growth as well

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 CHAPTER ONE

1.0INTRODUCTION
This chapter outlines the background of the study, problem statement, purpose of the
study, research objectives, research questions, significance of the study, scope of the study,
conceptual framework, and operational definitions.

1.1Background of the study

Economic growth is mainly focusing on performed tasks for improving the standard of
living in a country which is the availability of goods and services to individuals for
purchasing within the country or performed tasks to decrease the poverty level of individuals
of a country. And as a result of such relationship between economic growth and individuals
within the country, the economic growth is usually defined on per capita basis. In addition,
Economic growth is under influence of different variety of factors and variables as like as
investment rate, financial development, saving rate and deposit insurance. The relationship
between infrastructure and economic growth has, in recent years, become one of the most
important economic topics in both academic and policy circles.

Infrastructure investment is an important driving force to achieve rapid and sustained

economic growth. The presence of sufficient infrastructure will require for the modernization
and commercialization of agriculture and the achievement of income surpluses for capital
accumulation. It can provide a basis for the expansion of local manufacturing industries, as
well as enlarging markets for the outputs of these industries. Many studies have found a
positive relationship between the level of economic development (measured by per capita
income and other indicators), and quality of housing and access to basic amentia’s like
electricity, safe drinking water, toilets. Moreover, Infrastructure investment directly affects
the economic development. Therefore, that the only way to build up a country’s productive
potential and raise per capita income is to expand the capacity for producing goods, this need
not refer simply to the provision of plant and machinery, but also to roads, railways, power
lines, water pipes, schools, hospitals, houses and even “incentive” consumer goods such as

1
consumer durables, all of which can contribute to increased productivity and higher living
standards. (Dr. B. Srinivasu, 2013) A nation’s infrastructure development plays a significant
role in its economic growth. A fast growing economy warrants an even faster development of
infrastructure.

In China, China is the fastest growing country in the world for last few decades and
accounts for nearly one fifth of the world population. Economic growth in China increased
from 7.5% from 1970 to 1999 to over 10% per annum between 1999 to 2008 mainly driven
by sustained increase in gross domestic Capital formation. China has undergone a remarkable
transformation and China’s population living at less than $1 a day drastically reduced to
13.4% in 2003 and further to 8% in 2009 from 60% in 1980. Over the past two decades, one
of the defining features of China’s growth has been investment led growth supported by
domestic savings. China’s sustained high economic growth and and increased
competitiveness has been underpinned by a massive development of physical infrastructure.
However, China needs to maintain its growth momentum in a sustainable manner to improve
the overall standard of living of poor people and reduce regional inequality. (Pravakar
Sahoo, Ranjan, Geethanjali Nataraja 2010).
In sub-Saharan countries, The current level of infrastructure deficit in Nigeria has been
identified by Sanusi (2012) as the major constraint towards achieving the nation’s vision of
becoming one of the 20 largest economies in 2020. He further proffered that about 70 percent
of the 193,000 kilometres of roads in the country is in poor condition; that enterprise surveys
show that the power outages the nation experiences amount to over 320 lost days a year, with
over 60 percent of the population lacking access to electricity with over $13 billion spent
annually to fuel generators and that Nigeria, which once had one of the most extensive
railway systems in Africa, could now barely boast of a functional route either for passengers
or freight . According to National Bureau of Statistics (NBS) over the last decade, Nigeria’s
infrastructure spending contributed a 1.9% (approximately $4 billion) per annum to GDP.
The recommendation of the Asian Development Bank in the KPMG report is that in order for
a developing country to sustain growth and development, not less than 6% of GDP should be
invested on infrastructure. Sanusi (2010), reports that Nigeria is currently investing about 7%
of GDP on infrastructure, which is above the average for Sub-Saharan Africa. He however

2
expressed the need to increase this figure to at least 12% of the GDP. Following from the
above, infrastructure can be said to be more than just being a factor of production, but rather
a veritable condition for increased rate of economic growth. From the endogenous growth
models, infrastructure leads economic growth while the Wagner’s law regards the increase in
GDP as a main drive for public infrastructural investment. Some of the literature in fact
report negative or non-significant growth impact of public investment. Since there is no
consensus in the theoretical literature as to the direction of causality, this paper therefore
seeks to investigate the impact of infrastructure on economic growth in Nigeria. The study
covers 40 years (1970 to 2010) which accounts for about 77% of the life of the country since
its independence. (Onakoya Adegbemi Babatunde, 2012)

South Africa the relationship between infrastructure and economic growth has in recent
years, become one of the most important economic topics in both academic and policy
circles. The Accelerated and Shared Growth Initiative - South Africa (ASGI-SA) has
indented inadequate infrastructure as one of the six most important constraints to growth in
South Africa.
The National Treasury has allocated denned, R416 billion to spending on infrastructure
development and maintenance, broadly in the current three-year budget cycle (National
Treasury, 2007). This after a period from 1976 to 2002 when annual infrastructure investment
fell from 8.1% to 2.6% of GDP, with per capita expenditure falling from R1 268 to R356. At
the same time, academic journals have seen a curry of infrastructure-related publications,
beginning to correct a historical paucity of South African empirical research into the growth
infrastructure relationship. This research has followed the international trend of deploying
increasingly advanced and more appropriate statistical techniques. Early international studies
by Aschauer (1989a, 1989b, 1989c) and Munnell (1990) found a strong positive relationship
between infrastructure and growth, sparking considerable academic interest in the study of
this relationship. However, their ndings have been widely criticized as relying on
inappropriate techniques (Gramlich, 1994) and more attention is now paid to more recent
studies, which use more appropriate statistical methodology, such as those of Caldern and
ServØn (2004) and Estache, Speciale and Veredas (2005). Similarly, South African empirical
work has progressed in the last decade from overly simplistic, often inapproprriate statistical

3
techniques to more advanced and appropriate tools, particularly in the past three years.
(Garlick, 2006-2008)

In the Somalia; as stated the study of prof (Hassan ga’al 2017) there is lack of infrastructure
which brings poor standard living, economic deficit and improves poverty. Although
Infrastructure is a key element of poverty alleviation. It often acts as a catalyst to
development and enhances the impact of interventions to improve the poor’s access to other
assets, e.g., human, social, financial, and natural assets. Its impact is felt both on the
economic and social sectors. Without roads, the poor are not able to sell their output on the
market. In India, it has been shown that roads alone account for seven percent of the growth
in aggregate output of the rural areas. Without electricity, the industrialization process, which
provides the poor an important source of employment, is unlikely to take off. In Costa Rica, a
retrospective review of the rural electrification experience through electrification
cooperatives indicates that for one of these cooperatives the number of major businesses
jumped from 15 to 86 after electrification .Without potable water and sanitation health is at
risk. The social and economic impact often go hand in hand. and economic opportunities,
markets, healthcare and education. Lack of basic infrastructure such paths, trails, bridges and
roads and access to transport services makes it difficult for poor people to access markets and
services. There is clear evidence that rural isolation is associated with low agricultural
productivity linked to poor market access and low use of fertilizers and modern agricultural
technologies (Gaal, 2017).
One of the major problems facing Somalia is that not focuses on the importance of
infrastructural investment. In Somalia there are no well-organized public institutions which
support the societies both economic and social infrastructure status, infrastructure centers are
managed privately. but the secret is that infrastructural investment is vital for a nation’s
growth, if the society invest more on economic and social infrastructures, it will bring overall
economic growth and Development. Un fortunately, The destruction of the country
consumed not only the bridges that link the regions together in economic wise, but devastated
roads, water, transportation, education, communication, electricity, hospitals and all that may
contribute the development of social infrastructure as well, thus, lack of infrastructure makes
the economic growth and development retarded, therefore, to the researchers’ best

4
knowledge; there is no proof in the literature with respect to studies that examine the
relationship between infrastructural development and economic growth, however, this current
study explores the impact of infrastructural development on economic growth.

1.2 Problem statement

In Somalis Efficient transport infrastructure is essential within an economy as it dictates the
type of economic and social activities that can be conducted within a particular section of the
country. One of the most important factors for making investment decisions is the availability
of proper transport networks that facilitate the movement of goods, services as well as
workers. Moreover, a well-developed transport network enables the underdeveloped
communities to access essential goods and services. The transport infrastructure is also
particularly important in enabling connectivity which will enable the efficient delivery of
other infrastructure programs and other development plans. There is potential to link Somalia
with land-locked countries in the region (Ethiopia, South Sudan, Uganda and Central Africa)
through rehabilitation of inter-state and inter-regional road corridors and development of
transit service facilities and to Create infrastructure that enhances the employment, increases
food security, builds up resilience to climate change and variability, respect Somali cultural
heritages and is environmentally and economically sustainable national development
plan(2019)

The collapse of the Somali State during the civil war culminated in the destruction of public
and private infrastructure assets and systems including roads, seaports, airports, water, energy
, sewage systems factories, hospitals, laboratories, schools, businesses and ministries as well
as the loss of legislative and other key documents that provided regulatory or planning
frameworks for the infrastructure sector. Protracted displacement, internal migration and
rapid urbanization pose an additional challenge to service delivery and planning in the
infrastructure sector.
This impact can be felt when analyzing the present conditions of key infrastructure
components One of the major problems facing Somalia is that not focuses on the importance
of infrastructural investment. in Somalia there is no well-organized public institutions which
support the societies both economic and social infrastructure status, infrastructure centers are

5
managed privately. but the secret is that infrastructural investment is vital for a nation’s
growth, if the society invest more on economic and social infrastructures, it will bring overall
economic growth and development Inter-ministerial Public Works Coordination
Mechanism(2018)
In Mogadishu, there are several private institutions that offer some of infrastructures such as
water and electricity but government has very little impact on these institutions. There is no
large number of studies that are available to this topic. Therefore, this study is aimed to
bridge the literature gap and find out the impact of infrastructure development on economic
growth in Somalia.

1.3 Research purposes

A large number of studies are available on the significance of improved infrastructure
development at regional, national and international level. Across the nations growth is being
preferred for improvement of infrastructure of that nation. The social infrastructural
development can be improved through improved educational and health institutions. The
general concept of this research is to investigate the relationship between economic growth
and infrastructural development.
1.4 Research objectives

1.4.1 General objective

The objective of this research paper will be to analyze the impact of Infrastructure
development on economic growth in Mogadishu Somalia.
1.4.2 Specific objective

 To investigate the impact of ports development on economic growth in Somalia.

 To find out the role of energy infrastructure on economic growth.
 To address the Relationship between roads development and economic growth.

1.5 Research questions

The study was answered the following questions:
I. why is impact of ports development on economic growth?

6
 II. What is the role of Energy infrastructure on economic growth?
III. What is the Relationship between roads development and economic growth?

1.6 Significance of the study

This study is useful to everyone who wants to know more about the Impact of Mogadishu
Infrastructure and its significance on Economic growth. Since the study focused particularly
infrastructure development, the findings of this study are beneficial to whole society who
lives in Mogadishu city. It also significant to the parts of the government that involve the
functions of infrastructural developments. The findings of this study are helpful to those who
conduct future researches about this topic.

1.7 Scope of the study

The scope of the study will be geographically limited to Mogadishu Somalia infrastructural
development, and it did not go beyond other cities. It will also limited in content the impact
of infrastructural development on economic growth. Also, the study
will also limit to Ports, energy and roads infrastructures, this study periodically limited
“between” January to June 2021
1.8 Conceptual framework

Independence variable Dependency variable

ꜜꜜ

Energy infrastructure

Ports infrastructure

Economic growth

Roads infrastructure

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1.9 Operational definitions
Infrastructure refers to the fundamental facilities and systems serving a country, city, or
other area, including the services and facilities necessary for its economy to function.
Development refers to the systematic use of scientific and technical knowledge to meet
specific objectives or requirements.
Economic growth is an increase in the capacity of an economy to produce goods and
services, compared from one period of time to another.

8
 CHAPTER TWO

LITERATURE RIVIEW
2.0 Introduction
This chapter provides two sections; Section one analyses theoretical literature on
infrastructure of the countries and section two reviews empirical literature of infrastructural
development and economic growth. Infrastructure investments have been proposed in the
development literature as an influential. Infrastructure: is the institution for Economic
Cooperation and Development (OECD 2002), defines infrastructure as a structure of public
facilities in a nation or state, together with energy lines, ports, national buildings, roads. The
investment industry emphasizes on the economic and financial characteristics of
infrastructure assets. Economic growth is an increase in the ability and capacity of an
economy to produce services and goods and can be measured in nominal or real terms, the
latter of which is adjusted for inflation. Traditionally, aggregate economic growth is
measured in terms of gross national product (GNP) or GDP, although alternative metrics are
occasionally used.
Infrastructure development is important to aligning economic growth to reducing levels of
poverty (WDR, 1990). The level of welfare is gauged according to the accessibility of the
infrastructure. The poor can be classified as those who have no access to clean water and live
in Unhygienic slum dwellings with no proper road access. Consequently, they have poor
health and minimal job prospects. The expanding slums which generally have temporary
structures in most unindustrialized countries lack proper infrastructure network (WDR,
1994).Various types of infrastructural systems have wide ranging effects on standards of
living and decreasing poverty levels. The supply of clean piped water and proper public
health systems has the greatest impact in reducing deaths and diseases. (amos mugambi
2010).
2.1 Ports development and economic growth
Evaluating the economic impact of a seaport is an important subject both in the political and
scientific debate; Seaport development could affect the economic growth through many
channels. The impact of transportation infrastructure on the economic growth has long been a

9
controversial subject in literature on the economic growth. Transportation infrastructure is
considered as one of the means by which governments can stimulate economic growth [4-6],
A significant relationship between transport investment and economic growth is commonly
obtained. These researchers focus on all types of transport infrastructure, without
distinguishing between different types of transport. Recent publications are considered as
most accurate in dealing with the issue of the transport infrastructure and its relationship with
the economic growth. Recent studies have focused on investments in a specific type of
transportation infrastructure and its effects on economic growth. Among the transportation
infrastructure, seaports have been massively studied in the recent years. (T. A. Jouili, M. A.
Allouche 2015) Privatization of state owned enterprises (SOE), especially in the field of
transportation, has been popular trend in Europe, Asia, Australia, Africa and Latin America.
The trend was initiated in the United Kingdom by the Thatcher Administration with the
Transport Act of 1981.
The Act established the framework for privatizing British ports by creating a holding
company (Associated British Ports or ABP) for 19 ports and offering 49% of the company for
sale to investors (Bassett, 1993.) This set the stage for the privatization of other major SOEs,
including airlines, roads, telecommunication, railways and airports. Following in the
footsteps of seaport privatization, airport privatization was also initiated in Britain by the
Thatcher administration with the sale of 7 commercial airports to the public via the British
Airport Authority (BAA)1. Since that time, privatization of general transportation
infrastructure has been increasing across the globe, particularly in emerging economies like
Asia and Latin America. About eighty eight of the world’s top 100 seaports have already
been privatized (Juhel, 2001), and in the period 2000-2008, a further 74 ports were privatized
. In contrast, the privatization of airports has lagged far behind port privatization (Graham,
2008). Only 14% of the 91 busiest airports in the world have majority private ownership,
with 24% having some form of private ownership, and 51% with some form of
corporatization (ATRS Airport Benchmarking Report 2009)2. There are multiple reasons that
could account for this uneven pace of privatization, including the historical strategic
importance of airports to governments, the monopoly role played by airports in a traditional
hub-and-spoke network, and the relatively higher infrastructure expenditure typically
required in airports. (Bijan Vasigh, Clara Vydyanath Howar 2012).

10
Corporatization of port authorities is a critical reform step for improving port governance and
efficiency. Transition of port authorities from public sector entities to state-owned port
enterprises has proven to reduce risks of politically motivated investments, promote
maximum utilization of existing port assets (both land and basins), and facilitate the
development of new port infrastructure (berths, quays, and landside access) based on
commercially sound criteria. This note builds in two ways on the concept of port
corporatization as described in the World Bank Port Reform Toolkit (World Bank 2017):
first, by addressing the need for a “shareholder policy” to provide direction to the
corporatized port authority, and second, by offering detailed recommendations on the
governance structure of the corporatized entity.
The airport industry, in many ways comparable to the port industry, has already undertaken
similar reforms. The large majority of airport companies around the world operate as
autonomous corporate entities. Many, such as those in the Netherlands and Singapore, are
stateowned enterprises, while airport companies in a substantial number of countries,
including Australia, Germany, Spain, and the United Kingdom have been fully or partially
privatized. This “enterprise model,” whether government or privately owned, has been
proven to enhance airport efficiency (Liebert and Niemeier 2013). This note argues that the
ports industry will likely achieve the same benefits if corporatization is done effectively.
The corporatization of port authorities is less advanced than that of the broadly similar airport
industry. The majority of countries worldwide still manage their port authorities under public
administration. Managerial and investment development decisions are thus less likely to be
aligned with market needs. Under the best-practice corporatized model, port authorities
remain government owned but operate under commercial terms and aim at value creation for
port customers and stakeholders. Successfully corporatized port authorities share the
following characteristics: Self-sustained financially, Committed to port development based
on business needs, Operated broadly under the landlord model, Empowered to negotiate and
sign longterm leases or concession contracts. ( article of world bank group 2017).
Economic impact studies in general are essential for justifying the economic contribution of
large infrastructure facility developments. “They are especially controversial when used
prospectively to justify public subsidy or extraordinary planning permission” (Hall, 2004).
Therefore, the aim of port impact studies is to inform the general public about the economic

11
contribution of ports. This aim alone is not a small task, as ports facilitate socio-economic
infrastructure and generate external economies that are often not visible to the general public,
but consent is required whenever port facilities are established or expanded (Chang, 1978).
Today, it remains undecided as to whether or not ports contribute to their surrounding
national or regional economies. Some researchers (e.g. Yochum & Agarwal, 1987, Ferrari et
al., 2010, Bottasso et al., 2013, 2014, Shan et al., 2014, Chang, et al., 2014) have noted that
ports stimulate the economic growth of a country or region, whereas others (e.g. Kinsey,
1981, Gripaios & Gripaios, 1995, Jung, 2011, Deng et al., 2013) have argued that ports do
not play any key role therein. The constant decline in the number of jobs at ports due to
automation and the containerisation of goods has extricated the direct economic contribution
of ports. (Ziaul and Hans-Joachim Schramm 2018)
In the economic literature review, it is argued that the existence of seaports contributes to the
economic growth. Recently, the economic effect of seaport investment has attracted the
attention of researchers. Recently, a major number of studies have been devoted to
investigating the effect of seaport investment on national economic growth. The findings of
these studies [1-3, 7-13] showed that there is a positive relationship between seaport
investment and economic growth. Most previous researchers used a production function
approach to estimate the effects of seaport investment infrastructure on economic growth.
(tahar ammar jouili 2015).

2.2 Energy infrastructure and economic growth

Energy is commonly defined as a lifeblood of the global economy (the Oxygen of the
Economy) – a crucial input to nearly all of the goods and services of the modern world.
Stable and reasonably priced energy supplies are central to maintaining and improving the
living standards of billions of people. Without heat, light and power you cannot build or run
the factories and cities that provide goods, jobs and homes, nor enjoy the amenities that make
life more comfortable and enjoyable. the energy industry contributes to economic growth in
two ways. First, energy is an important sector of the economy that creates jobs and value by
extracting, transforming and distributing energy goods and services throughout the economy.
As an example, in 2009 the energy industry accounted for about 4% of GDP in the United
States. In some countries that are heavily dependent on energy exports the share is even

12
higher: 30% in Nigeria, 35% in Venezuela and 57% in Kuwait. The energy industry extends
its reach into economies as an investor, employer and purchaser of goods and services.
Second, energy underpins the rest of the economy. Energy is an input for nearly all goods and
services. In many countries, the flow of energy is usually taken for granted. But price shocks
and supply interruptions can shake whole economies. For countries that face chronic
electricity shortages like India, continuing disruptions take a heavy, ongoing toll. ( Voser
2012)

Energy plays an important role in the lives of humans and in the activities of the economy,
both as a scale of economic and social development and as a basic humanitarian need.
Therefore, energy consumption per capita of a country is regarded as an important indicator
of economic growth and development. the mechanization of production and the emergence of
mass (serial) production methods following the industrial revolution in the late eighteenth
century resulted in an increased demand for energy. This, in turn, caused the production
process and the capacity of a country to become increasingly dependent on energy and
energy-based inputs. Finally, they concluded that the relationship between energy use and an
aggregate of output, such as GDP, is affected by substitution-complementarities between
energy and other inputs; technological change and efficient use of energy; shifts in the
composition of the energy input; and shifts in the composition of GDP (output). ( (Ömer
Esen, 2017)

The Recent rise in energy prices, shrinking existing resources, and the search for alternative
sources of energy and energy conservation technologies have brought into focus the issue of
causality between energy use and economic growth. Moreover, Energy expansion is expected
to lead to higher growth and its shortage may retard the growth process. Similarly economic
growth may affect the demand for energy significantly. Energy demand, particularly for
households, responds positively and significantly to economic growth. The demand is
responsive to changes in energy prices also. Own price effect is negative and the cross price
elasticity estimates indicate substitution between electricity and petroleum products and
between natural gas and petroleum products, especially for domestic users. also there is a

13
limited substitutability between different sources of energy. finally, the rise in prices of
energy has important implications for energy use in the country. (SIDDIQUI, 2004)

Energy policy can contribute to decarburization by giving suitable market signals and
incentives to decarbonize generation and energy use. The art of delivering good energy policy
is to choose the least-cost combination of instruments to meet the various goals, which
include delivering the necessary research, development, and learning needed to lower the
costs of low-carbon technologies. Energy policy can contribute to growth by ensuring that the
resulting energy mix is delivered efficiently, at least cost, sustainably, and securely. A failure
in any of these will create future economic and social costs that would harm well-being, and
so avoiding such failures can be said to contribute to economic growth (and more widely to
improvements in well-being, which is why growth is desirable). Likewise, David
Stern(2011), addresses that energy is its own special input to the production function and is
non-substitutable (we can’t make stuff without energy), is still outside of mainstream
economic discourse, who follow the classic exogenous growth model (Solow) where labor
and capital are all that matter. But if energy is special, and has declining marginal returns (i.e.
fossil fuel depletion), that has enormous implications for future growth prospects and the
modus operandi for our institutions. Yet it is still widely assumed in economic/financial
circles that energy is just the same as other commodity inputs and that a high enough price
will create its own energy supply in perpetuity. (Newbery, 2012)

Energy Infrastructure investment is one of the main preconditions for enabling developing
countries to accelerate or sustain the pace of their development and achieve the Millennium
Development Goals (MDGs) set by the United Nations in 2000. Furthermore, the future
investment needs of developing countries in energy infrastructure far exceed the amount
being spent by the governments, the private sector and other stakeholders, resulting in a
significant financing gap. According to a World Bank estimate, on average, developing
countries currently invest annually 3- 4% of their GDP in infrastructure; yet they would need
to invest an estimated 7-9% to achieve broader economic growth and poverty reduction goals
(UNCTAD, 2008). Similarly, According to MEECO GROUP (2017), A stable energy sector
is one of the most essential requirements for successful economic growth. Whilst in almost

14
all countries in Europe or North America, the energy infrastructure is well developed; many
other regions of the world have to deal with severe challenges in this area. (GAKUO, 2015)

The expansion of Renewable Energy Sources is a viable solution to tackle energy security
and climate change, while the gradual replacement of fossil fuels with RESs promotes a
sustainable energy economy. On the other hand, According to Šimelytė &
Dudzevičiūtė(2017), Since the industrial revolution people have been trying to reduce
production cost and increase profitability. One way to reduce production cost is to use
cheaper energy sources. Even currently, production of electricity mostly has been based on
fossil, and fossil energy sources might run out much sooner as it is expected. Even more,
burning fossil fuels raises CO2 level, which is recognized as exerting a negative impact on
the environment and causes the greenhouse effect. (Stamatios Ntanos, 2018)

General agreement that infrastructure is an important contributor to the growth of an

economy. For many developing countries, shortages of infrastructure are seen as acting as a
brake on economic development, and country-level strategies play close attention to
remedying deficits in the supply of infrastructure. Because the power sector is one of the
components of infrastructure, a link between infrastructure and growth supports the
hypothesis that energy is linked to growth.
Another reason for examining infrastructure is complementarities. The benefits of electricity
supplied to a hospital would be greatly reduced if there are no paved roads connecting
patients to the hospital, if the hospital had no access to clean water, and if there were poor
telephone connections between the hospital and patients. Because of these complementarities,
it would be easier to demonstrate a link between a package of interventions―for example,
provision of reliable infrastructure such as electricity, telecommunications, transport, natural
gas, and water. (Kojima, 2016)
Thus the Test of whether higher energy use leads to GDP growth, or GDP growth leads to
more energy consumption or both links coexist, or no causal relation exists between the two
variables. The result shows that the energy-growth linkage has a key difference from the
infrastructure-growth linkage in the previous studies. The infrastructure-GDP link supposes
that the capital stock of the power sector helps determine the level of GDP in the economy. A

15
decrease in the consumption of electricity (as might be cause by a recession) would not be
expected to lead to a decrease in GDP because there would be no fall in the amount of
infrastructure. By contrast, the use of energy usually includes oil and gas as well as
electricity, and the formulation of the model implies that as energy use falls the level of GDP
will fall. Energy has been measured in a variety of ways. Studies limiting energy to the power
sector have used megawatt-hours, while those including oil and gas have used mega joules,
British thermal units, or tons of oil equivalents.

Asserts that in the short-run, the Granger causality runs from income to energy consumption
for Iran, Iraq, Qatar, United Arab Emirates and Saudi Arabia while for the rest of the OPEC
countries the reverse is true, i.e. the Granger causality runs from energy consumption to
income. However, in the long run there is not any Granger causality relationship for all the
OPEC countries. In the case of Qatar and the Saudi Arabia and Nigeria, energy, economic
growth a Results show, that even for these countries which the energy consumption has an
effect on economic growth, the effect is very minimal. The direction of causation between
energy consumption and economic growth has significant policy implications. If there exists
unidirectional Granger causality running from income to energy, it may be implied that
energy conservation policies may be implemented with little adverse or no effects on
economic growth. (Sadr, 2012)

Energy consumption and economic growth in the Nigerian economy from the period of 1970
to 2005. They examined three different sources of energy which are crude oil, electricity and
coal. By applying the co-integration technique, the results derived inferred that, there exists a
long run positive relationship between current period energy consumption and real GDP. The
study revealed a negative relationship for lagged values of crude oil, electricity consumption
and real GDP. The study observes that, energy consumption is a strong determinant of
economic growth having an implicit effect in lagged periods and both an implicit and explicit
effect on the present economy of Nigeria. The study recommended that this sector should be
given more relevance even by the opportunities laden in the sector to increase economic
growth.

16
 Also, they assert, that there is no Granger causality between electricity consumption and
economic performance (GDP) at the national level and primary sector. Their result also
revealed that in the secondary sector, production Granger causes electricity consumption.
Furthermore, in the tertiary sector, the causality runs from electricity consumption to
production. He recommended that any policy aimed at strengthening growth and reduce
poverty must pay special attention on energy production. (Molem chirstopher sama, 2016)

2.3 Roads infrastructure development

Road’s infrastructure is a long-term investment which may take several years to be completed
and is regarded as a multi-year’s project. As a result, the instant and longer-term implications
of road infrastructure improvements may differ significantly. Time may be required for
markets to develop around new roads, and the benefits to in terms of employment and usage
may not appear until several years after the project has been fully completed, as such some
studies find that the causality direction is from GDP to infrastructure. Good road
infrastructure services help the poor contribute to environments sustainability. Clean water
and sanitation, non-polluting sources of power, safe disposal of solid waste, and better
management of traffic in urban areas provide environmental benefits for all income groups.
The urban poor often benefit most directly from good road infrastructure services which
mitigates standard of living conditions characteristic of concentrated settlements such as
unsanitary conditions, hazardous emissions, and accident risks. Road improvements can also
encourage vehicle use and decrease emissions. Therefore, additions to infrastructure capacity
are only part of the solution. Improved management of traffic and land use and promotion of
non-motorized modes, cleaner fuels, and public transport are also important. (SIYAN
PETER, 2015)

The significance of interest in the framework to the financial progression of a country cannot
be over clarified. Lacking or poor base breaking points open an entrance to possibilities, and
additionally better life opportunities and administrations, for example, clean water, training,
wellbeing, solid transport and correspondence. The ILO report (2010) indicates that in spite
of the fact that framework advancement is not distinguished as an immediate Millennium
Development Goal (MDG) target or pointer, without it large portions of the objectives won't

17
be met and that maintainable foundation is not just a fundamental part in enhancing the
occupations of poor people, it additionally gives chances to making employments amid
development, operation and upkeep. (Moeketsi, 2017)

Transport infrastructure is widely thought to promote growth. Many countries continue to

make substantial infrastructure investments based on the logic that people need access if they
are to benefit from ideas and markets. But the causal effects of investing in transportation
infrastructure are contested. Some experts, notably Savage, believe it is indispensable; while
others, notably Fogel, believe that is should not be policy goal that instead it should be left to
market forces to develop the infrastructure when the demand necessitates it. Unambiguous
estimates of the size and direction of effects could impact policy. (Abhijit Banerjee, 2010)

Traditionally, policy reform has been an evolutionary process taking place over many years
involving many stakeholders. Commercialization2 and other market-oriented approaches to
transportation policy reform first arose as a policy alternative in Canada during the
Macpherson Royal Commission of 1967 and slowly gained prominence throughout the
1970s. By the early 1980s, the rise of neoliberal thinking brought a new approach based on
the supremacy of market-based principles and a minimal role for Government. As budgetary
deficits escalated, governments sought ways to devolve Public services to the private sector
and adopt marketplace principles into public sector Decision making under the umbrella of
the “new” public management (NPM) framework. Government-provided transportation
services, with significant capital costs and ongoing Operating expenditures, were no
exception to this trend. Air, rail and marine modes all Experience significant reforms as the
federal government sought to deregulate and decentralize its involvement in the national
transportation system. (Davis, 2016)
2.4 Relationship between roads development and economic growth
Road infrastructure has always played a key role in the progress and economic growth of a
nation, both through the direct effects of higher mobility for citizens and goods and also via
the indirect benefits derived from the process of building infrastructure. In addition, the road
transport sector is essential for developing countries for the reason that provision of other
advanced means of transportation is expensive, public expenditure in rural infrastructure is

18
one of the most powerful instruments that governments can use to promote economic growth
and poverty reduction and among these services, road transport sector is considered as the
crucial one.. In sub-Saharan African countries roads are the most useful way of transport
which accounts for over 75% of passenger and freight traffic, and the road network in the
region plays a significant roles in their socio-economic development. The development and
maintenance of appropriate road infrastructure is, therefore, fundamental to economic growth
and poverty reduction in sub- Saharan Africa. (Ayele, 2017)

Since the mid-1980s, China has invested massively in road infrastructure. The resulting
expansion of the road network, in addition to policy reforms and improvements in human
capital, has been identified as one of the major engines of China’s economic growth over the
past decade national GDP grew by more than 9% per year, making China’s economy one of
the most dynamic in the world. While the Asian financial crisis unexpectedly hit the star
performing economies of South Korea, Hong Kong, Singapore, Thailand, and Indonesia, the
Chinese economy continued its growth momentum with an annual GDP growth rate of 7-9%
from 1998 to 2002. Accompanying the rapid growth of the national economy was an
astounding reduction of absolute poverty in rural China. Based on the official poverty line of
$0.66 per day (constant 1985 purchasing power parity dollars), the incidence of poverty in
rural China declined from 250 million in 1978 to 29 million in 2001. (Chan-Kang, 2004)

The availability of road transport infrastructure investment (ROTI) in a country is of

paramount importance, given that it enhances the economic chains and accelerates growth
and development in the country. Various studies (Aschauer 1989; Fedderke & Garlick 2008;
Kayode, Babatunde & Abiodun 2013; Pradhan 2010) have suggested that adequate road
infrastructure investment boosts economic activities that tend to improve the living standard
of the people, accelerate economic growth (EG) and improve well-being, thereby enhancing
the economics derived from the prudent allocation of resources within the geographical
enclave. Environmental scientists, sustainability specialists, those knowledgeable in
diversifying production and economies, poverty eradication practitioners and traders all attest
to the efficacy of ardent transport infrastructure investment in improved standard of living
and the minimum conditions for growth and development. Accordingly, Pradhan (2010)

19
argues that having good ROTI in developing societies enhances people’s standards of living,
resulting in its ability to create jobs, increase economic activities and entrepreneurial
activities as well as opportunities for the teeming youth population in the country. (Hlotywa,
2017)

CHAPTER THREE

RESEARCH METHODOLOGY
 
3.0 Introduction 
This chapter introduced you the research methodology by presenting how the research will be
conducted. It contains the research design, research population, sample size, Sampling
procedure, data collection, research instrument, research procedure and data analysis. 
 
3.1 Research design  
Research design is defined by different social scientists in different terms; some of the
definitions are as: according to Jahoda, Deutch & Cook “A research design is the
arrangement of conditions for the collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy and procedure”.  Research design is
the plan, structure and strategy and investigation concaved so as to obtain ensured to search
question and control variance” (Jamia  Islamia 2016)
Descriptive research It is also known as statistical research, this describes phenomena
as they exist. It is used to identify and obtain information on characteristic of a particular
issue like community, group or people. In other words, we can say that this type of research
describes social events, social structure, social situations, etc. The observer observe and
describe what did he find? Descriptive research answers the questions, what, who, where,
how and when (Jamia  Islamia 2016) The descriptive research design is adopted to explore

20
what is the impact of infrastructure development on economic growth in somalia. Descriptive
study will undertake in order to ascertain reliability of data collected so as to be able to
describe the characteristics of the study ‘s variables and answer the research question
(Jamia   2016)
There are two types of variables in statistics:  quantitative and qualitative analysis, so
I use quantitative analysis. Quantitative analysis is a method emphasizes objective
measurements and the statistical, mathematical, or numerical analysis of data collected
through polls, questionnaires, and surveys, or by manipulating pre- existing statistical data
using computational techniques. Quantitative research focuses on gathering numerical data
and generalizing it across groups of people or to explain a particular phenomenon. (Malhotra,
2015) 
The study was used cross sectional strategy because it was based on variables measured with
numbers and analysis with statistical procedures and it‘s useful for resource and time
available to researcher.   
3.2 research population 
population is a distinct group of individuals, whether that group comprises a nation or
a group of people with a common characteristic. In statistics, a population is the pool of
individuals from which a statistical sample is drawn for a study. Thus, any selection of
individuals grouped together by a common feature can be said to be a
population population is the all individuals or objects within a certain population usually have
a common, binding characteristic or trait (Martin Murphy 2016). According to the Population
refers as an aggregate or totality of all the objects, subjects or members that conform to a set
of specifications. 
Target population Particularly for comparative surveys, it is vital that a clear
understanding of the target population is reached well in advance of commencing survey
fieldwork. Surveys are complex, challenging and expensive activities. Without a clear target
population, resources will likely be wasted. Moreover, a lack of clarity in the population
definition may lead to misunderstanding and dissatisfaction among survey
participants (Martin Murphy 2016). 
The accessible population is the population in research to which the researchers can
apply their conclusions. This population is a subset of the target population and is also known

21
as the study population. It is from the accessible population that researchers draw their
samples. (Mohamed Adam, 2004). The accessible population is reached after taking out all
individuals of the target population who will or may not participate or who cannot be
accessed at the study period (Lavrakas, 2008). It is the final group of participants from which
data is collected by surveying either all its members or a sample drawn from it.
So this study will use Accessible population in the study of somali chamber of
commerce and buruuj construction company which are private and public owned institutions
respectively. According to the website, buruuj construction company has population of 156
and somali chamber of commerce has 35 including different levels of management. The total
population of the two institutions is 191 including all levels of the employee, but the target
population of this study will be 36 populations from different levels of management. I
selected those two institutions because they have related information. 
 
3.3 Sample size 

Sample size is one element of research design that investigators need to consider
as they plan their study. Reasons to accurately calculate the required sample size include
achieving both a clinically and statistically significant result and ensuring research resources
are used efficiently and ethically (Burmeister, Elizabeth, Aitken, 2012). The sample size of a
survey most typically refers to the number of units that were chosen from which data were
gathered (Lavrakas, 2008).  
 
  To determine the ideal sample size for a population, the study will use The Slovene‘s
formula (1978) to determine the minimum sample size. 
 
               
n=N1+Ne2N1+Ne2
  
Where: 
n= is the minimum sample size required 

22
 N= is the target population 

 e= is the level of significant, it is assumed to be 5 % 

 

New sample size:

N 191
n= n= = 129
1+N(e 1+191 (0.05)2
)2

Therefore, the sample size is too large; hence I will equation (2) to reduce the
sample size

ss 129 129
= = = 36
1+(ss-1)/ tp
1+(1291)/50 3.56

company  N= population  n=sample size 

somali chamber of 35    6.6%  
commerce   
buruuj construction 156   29.4%
3.4 Sam
company 
pling
total  191 36%

procedure 
The sampling procedure of this study will use probability sampling procedure
particularly; simple sample random will use to select sample. Simple sample random is the
basic sampling technique where we select a group of objects (a sample) for study from a

23
larger group (a population). Each individual is chosen entirely by chance and each member of
the population has an equal chance of being included in the sample. Every possible sample of
a given size has the same chance of selection (Press, 2009). 
 
This study will use probability sampling procedure particularly haphazard sampling
technique that is the most appropriate to obtain for the sample, not all members of the
population have an equal chance of being enlisted in to the sample. During the purposive
sampling the researchers consciously decides who will include the sample, the main purpose
of purposive sampling is that it designed to collect focused information. It is preferred for this
study because of its efficiency particularly it saves time and money. 
   
      3.5 Research instrument 

This study will use questionnaire. The questionnaire will be designed to enable the
study to get relevant information to the research topic. Questionnaire is a collection of items
to which are pendent is expected to react in written. According to the (Wilcock, 1993), that
the Questionnaire has many advantages include: There is low cost even when the universe is
large and is widely spread geographically, It is free from the bias of the interviewer; answers
are in respondents ‗own words, Respondents have adequate time to give well thought out
answers and Large samples can be made use of and thus the results can be made more
dependable and Reliable. 
3.6 Data gathering procedure 
This study was gathered and collected quantitative data from 191 respondents
through self-administered questionnaire, especially delivery and collection questionnaire.
Because this type of questionnaire was appropriate to the situation in which the study was
conducted. This type of questionnaire was delivered by hand to each participant and collected
later. 
 
 
3.7 Data Analysis  

24
 To analyze the collected data, the researchers employed descriptive data analysis
since the design of study is quantitative. Quantitative data were generated and analyzed
through questionnaires, Data will be presented in the form of frequencies, percentages, cross
tabulation and Chart analysis. For this study, the researchers were used measurements of
frequency, percentage, tables, and charts, using social packages for statistics (SPSS) and
excel.  
Finally, the researchers ware interprets the results of analysis to make summary of finding,
conclusions and recommendations. 
 
                                                                                                                  
3.8 Ethical Consideration  
In the process of this study, the issue of ethics is very important in
research. Despite the high value of knowledge gained through research, knowledge
cannot be pursued  at the expense of human dignity (Oso & Onen, 2008). Thus, the
data collected was kept confidentiality and was exclusively used for the purpose of
Bachelor degree requirements. The respondents were informed of the contents and
the aims of the research prior to administration of the instrument. This research was
fully conducted ethically and all copyrights were observed and where permission
was required to reproduce materials was sought. In addition the researcher will
request from the academic department a certificate of confidentiality so as to get
confidentiality and the researcher will provide the participants with information
about the purpose of the research and to maintain ethical issue the researcher will
request to institution‘s administration to permit to allocate questionnaire and will tell
them that the information use only for academic purpose, and the expected duration
of participation and the procedure to be fallowed. 

25
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0 Introduction
This chapter presented the result of the analyzed for the impact of
infrastructure development on economic growth in Mogadishu. Statistical package
for the social science (SPSS version 24) in analyzed data that have collected from
the respondents.

4.1. Demographic characteristics of the respondents

This part presents the background information of the respondents who participated
in this Study; the purpose of this background information is to find out the characteristics of
the respondents. Furthermore, the respondents have also given the promise that all the data
they provided is only used for academic purpose research and the identities of the
respondents will be confidential. In total, (36) respondents filled in the questionnaire selected
from the two companies in Mogadishu Somalia. The shape of the questionnaire in the
demographic section is looked upon in terms of gender, marital status, age, education level,
and experience

Table 4.1.1 Gender of the respondents

Cumulative
Frequency Percent Valid Percent Percent
male 34 94.4 94.4 94.4
female 2 5.6 5.6 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

26
 Table 4.1.1 reveals that the most of the respondents 34 (94.4%) were male, on the other
hand 2 (5.6%) were female. The study illustrates that the male respondents of this study were
more than female respondents
Table 4.1.2 Age of the respondents

Cumulative
Frequency Percent Valid Percent Percent
20-30 years 18 50.0 50.0 50.0
31-40 years 14 38.9 38.9 88.9
41-50 years 4 11.1 11.1 100.0
Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.1.2 indicated that the most of the respondents 18 (50%) were 20-30, on the
other hand 14 (38.9%) were 31-40, as well as 4 (11.1%) were 41-50. Therefore, this result
shows that the majority of the respondents were 20-30 years old.

Table 4.1.3 Educational level of the respondents

Cumulative
Frequency Percent Valid Percent Percent
Secondary 2 5.6 5.6 5.6
Diploma 4 11.1 11.1 16.7
Bachelor 24 66.7 66.7 83.3
Master 6 16.7 16.7 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

27
 Table 4.1.3 showed that the respondents 2 (5.6%) were secondary, while 4

(11.1%) were diploma, on the other hand 24 (66.7%) were bachelor, and 6 (16.7)
were master. The research indicates that the majority of the respondents were
bachelor degree.

Table 4.1.4 Marital of the respondents

Cumulative
Frequency Percent Valid Percent Percent
Single 7 19.4 19.4 19.4
Married 28 77.8 77.8 97.2
Divorce 1 2.8 2.8 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.14; illustrates that the most of the respondents 7 (19.4%) were single, as
well as 28 (77.8%) were married, on the other hand 1 (2.8%) were divorce.
Therefore, this result indicates that the majority of the respondents were married.

Table 4.1.5 Experience of the respondent

Cumulativ
Frequency Percent Valid Percent e Percent
Less than 1-year 6 16.7 16.7 16.7

1-2years 9 25.0 25.0 41.7

3-5years 10 27.8 27.8 69.4

28
 above 5years 11 30.6 30.6 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.1.5 indicated that the respondents 6 (16.7%) had less than one
year of experience, while 9 (25%) had 1-3 years of experience, on the other hand 11
(30.6%) had 4-7 years of experience, and 10 (27.8%) had above 7 years of
experience. The researcher indicates that the majority of the respondents had 4-7
years of experience

Table 4.2.1 Rural areas with a good road infrastructure will experience growth of
agricultural productivity

Cumulative
Frequency Percent Valid Percent Percent
higher rates productivity 29 80.6 80.6 80.6

lower rates productivity 7 19.4 19.4 100.0

Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.2.1 showed that the respondent 29 (80.6%) were answered higher rates
productivity when it comes rural areas with a good road infrastructure will experience growth
of agricultural productivity while another 7 (19.4%) chosen lower rates productivity.
Therefore, this result indicates that the majority of the respondents were answered higher rates
productivity

29
 90.0 Percent
80.6%
80.0
70.0
60.0
50.0
40.0
30.0 19.4%
20.0
10.0
0.0
higher rates productivity lower rates productivity

Figure 4.2.1 Rural areas with a good road infrastructure will experience growth of
agricultural productivit

Table 4.2.2 Transport infrastructure is widely thought to promote growth

Cumulative
Frequency Percent Valid Percent Percent
Economic 12 33.3 33.3 33.3
Business 11 30.6 30.6 63.9
Industries 13 36.1 36.1 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.2 indicated that the respondents 12 (33.3%) were chosen Economic, while
other 11 (30.6%) respondents selected Business, on the other hand the most respondents 13
(36%) were selected Industries. therefore, this result indicates the majority of the respondents
were selected Industries

30
 Percent

Industries 36.1%

Business 30.6%

Economic 33.3%

27 28 29 30 31 32 33 34 35 36 37

Figure 4.2.2 Transport infrastructure is widely thought to promote growth

Table 4.2.3 Roads infrastructure is a long-term investment which may take

several years to be completed and is regarded as a multi-year’s project

Cumulative
Frequency Percent Valid Percent Percent
Accept 31 86.1 86.1 86.1
Reject 5 13.9 13.9 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.3 Showed that the most respondents 31 (86.1%) were answered
accept which means roads infrastructure is a long-term investment which may take
several years to be completed and is regarded as a multi-year’s project while another
5 (13.9%) were chosen reject, the respondents do not think that roads infrastructure
is a long-term investment which may take several years to be completed and is
regarded as a multi-year’s project. therefore, this result indicates the majority of the
respondents were answered accept.

31
 Percent

13.9%

86.1%

Accept Reject
Figure 4.2.3 Roads infrastructure is a long-term investment which may take several
years to be completed and is regarded as a multi-year’s project

Table 4.2.4 Roads development makes crucial contribution to economic growth and
fighting against
Cumulative
Frequency Percent Valid Percent Percent
Absolute poverty 26 72.2 72.2 72.2
Rural poverty 3 8.3 8.3 80.6
Urban poverty 7 19.4 19.4 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.4 indicates that the respondents 26 (72%) were chosen Absolute poverty
Road’s development makes crucial contribution to economic growth and fighting against,
while 3 (8.3%) elected Rural poverty, also 7 (19.4%) selected Urban poverty. so that this
result indicates that the majority of the respondents were selected Absolute poverty.

32
 Percent
80.0
72.2%
70.0
60.0
50.0
40.0
30.0
19.4%
20.0
10.0 8.3%

0.0
Absolute poverty Rural poverty Urban poverty

Figure 4.2.4 Roads development makes crucial contribution to economic growth and
fighting against

Table 4.2.5 Does Road development has also been uneven between rural and
urban areas and to increase economic growth
Cumulative
Frequency Percent Valid Percent Percent
Yes 31 86.1 86.1 86.1
No 5 13.9 13.9 100.0
Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.2.5 showed that the respondents 31(86.1%) were answered yes
which means road development has also been uneven between rural and urban areas
and to increase economic growth while another 5 (13.9%) respondents chosen no.
therefore this result indicates that the majority of the respondents were answered yes

33
 percent

no 13.9%

yes 86.1%

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Figure 4.2.5 Does Road development has also been uneven between rural and urban
areas and to increase economic growth

Table 4.2.6 Energy is commonly defined as a lifeblood of the global economy

the Oxygen of the Economy
Cumulative
Frequency Percent Valid Percent Percent
Accept 33 91.7 91.7 91.7
Reject 3 8.3 8.3 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.6 Showed that the most respondents 33 (91.7%) were answered
accept which means Energy is commonly defined as a lifeblood of the global economy
the Oxygen of the Economy. While another 3 (8.3%) were chosen reject, the respondents
do not think that Energy is commonly defined as a lifeblood of the global economy the
Oxygen of the Economy. therefore, this result indicates the majority of the respondents
were answered accept

34
 Percent
100 91.7%
90
80
70
60
50
40
30
20
10 8.3%
0
Accept Reject

Figure 4.2.6 Energy is commonly defined as a lifeblood of the global economy the
Oxygen of the Economy
Table 4.2.7 Which relationship between for lagged values of crude oil, electricity
consumption and real GDP
Cumulative
Frequency Percent Valid Percent Percent
Positive relationship 29 80.6 80.6 80.6

Negative relationship 7 19.4 19.4 100.0

Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.2.7 showed that the respondent 29 (80.6%) were answered Positive
relationship when it comes relationship between for lagged values of crude oil, electricity
consumption and real GDP while another 7 (19.4%) chosen Negative relationship.
therefore, this result indicates that the majority of the respondents were answered Positive
relationship

35
 Percent

Negative relationship 19.4%

Positive relationship 80.6%

0 10 20 30 40 50 60 70 80 90

Figure 4.2.7 Which relationship between for lagged values of crude oil, electricity
consumption and real GDP

Table 4.2.8 policy contribute to growth by ensuring that the resulting energy mix is
delivered Energy
Cumulative
Frequency Percent Valid Percent Percent
Efficiently 13 36.1 36.1 36.1
least cost 18 50.0 50.0 86.1
sustainably and securely 5 13.9 13.9 100.0

Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.2.8 indicates that the respondents 13 (36.1%) were chosen Efficiently when it
comes policy contribute to growth by ensuring that the resulting energy mix is delivered
Energy, while 18 (50%) least cost, also 5 (13.9%) selected sustainably and securely. so that
this result indicates that the majority of the respondents were selected least cost.

36
 Percent
60
50%
50

40 36.1%

30

20
13.9%
10

0
Efficiently least cost sustainably and securely

Figure 4.2.8 policy contribute to growth by ensuring that the resulting energy mix is
delivered Energy
Table 4.2.9 the expansion of Renewable Energy Sources is a viable solution to tackle
energy security and climate change

Frequency Percent Valid Percent Cumulative Percent

Accept 31 86.1 86.1 86.1
Reject 5 13.9 13.9 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.9 illustrated that the most respondents 31 (86.1%) were answered
accept which means there is renewable energy sources is a viable solution to tackle
energy security and climate change, while other respondents 5 (13.9%) chosen reject
which means there is no renewable energy sources is a viable solution to tackle energy
security and climate change. Therefore, this result indicates that the majority of the
respondents were answered accept.

37
 Percent

Reject

Accept 86.1

0 10 20 30 40 50 60 70 80 90 100

Figure 4.2.9 the expansion of Renewable Energy Sources is a viable solution to tackle
energy security a climate change

Table 4.2.10 does stable energy sector is one of the most essential requirements for
successful economic growth

Frequency Percent Valid Percent Cumulative Percent

Yes 32 88.9 88.9 88.9
No 4 11.1 11.1 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.10 showed that the most respondents 32 (88.9%) were answered yes
which means stable energy sector is one of the most essential requirements for successful
economic growth, while another 4 (11.1%) respondents chosen no. therefore this result
indicates the majority of the respondents were answered yes.

38
 Percent
100
88.9%
90
80
70
60
50
40
30
20
11.1%
10
0
yes No

Figure 4.2.10 does stable energy sector is one of the most essential requirements for
successful economic growth

Table 4.2.11 Does Ports facilitate socio-economic infrastructure and generate external
economies that are often not visible to the general public.

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 28 77.8 77.8 77.8
No 8 22.2 22.2 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.11: Showed that the most respondents 28(77.8%) were

answered yes which means Ports facilitate socio-economic infrastructure and
generate external economies that are often not visible to the general public, while
another 8 (22.2%) were chosen no, the respondents does not think that Ports
facilitate socio-economic infrastructure and generate external economies that are

39
 often not visible to the general public. therefore, this result indicates the majority of
the respondents were answered yes.

Percent

22.2%

78.8

Yes No

Table 4.2.11 Does Ports facilitate socio-economic infrastructure and generate external
economies that are often not visible to the general public.

Table 4.2.12 Quality of port has a positive effect

Cumulative
Frequency Percent Valid Percent Percent
Economic growth 7 19.4 19.4 19.4
Economic stability 6 16.7 16.7 36.1
Economic performance 23 63.9 63.9 100.0

Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.2.12 indicates that the respondents 7 (19.4%) were chosen Economic growth
when it Quality of port has a positive effect, while 6 (16.7%) Economic stability, also 23 (63.9%)
selected Economic performance. so that this result indicates that the majority of the respondents
were selected Economic performance.

40
 Percent

Economic performance 63.9%

Economic stability 16.7%

Economic growth 19.4%

0 10 20 30 40 50 60 70

Figure 4.2.12 Quality of port has a positive effect

Table 4.2.13 Corporatization of port authorities is a critical reform step for

improving port Governance and efficiency
Cumulative
Frequency Percent Valid Percent Percent
Accept 26 72.2 72.2 72.2
Reject 10 27.8 27.8 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.13: Showed that the most respondents 26 (72.2%) were answered accept
which means Corporatization of port authorities is a critical reform step for improving port
Governance and efficiency., while another 12 (36.1%) were chosen reject, the respondents
does not think that Corporatization of port authorities is a critical reform step for improving
port Governance and efficiency. therefore, this result indicates the majority of the
respondents were answered accept

41
.

Percent
80
72.2%
70
60
50
40
30 27.8%

20
10
0
Accept Reject

Figure 4.2.13 Corporatization of port authorities is a critical reform step for improving
port Governance and efficiency

Table 4.2.14 does the existence of seaports contributes to the economic growth

Frequency Percent Valid Percent Cumulative Percent

yes 34 94.4 94.4 94.4

no 2 5.6 5.6 100.0

Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.2.14 illustrated that the most respondents 34 94%) were answered yes which
means the existence of seaports contributes to the economic growth, while another 2 (5.6%)
respondents chosen no. therefore this result indicates the majority of the respondents were
answered yes

42
 Percent

no 5.6

yes 94.4

0 10 20 30 40 50 60 70 80 90 100

Figure 4.2.14 does the existence of seaports contributes to the economic growth.

Table 4.2.15 Lack of infrastructure contributes

Cumulative
Frequency Percent Valid Percent Percent
poor standard of living 23 63.9 63.9 63.9
decrease economic growth 13 36.1 36.1 100.0

Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.2.15 showed that the respondent 23 (63.9%) were answered poor standard of
living when it comes Lack of infrastructure contributes while another 13 (36.1%) chosen
decrease economic growth. therefore, this result indicates that the majority of the respondents
were answered poor standard of living

43
 Percent

36.1%

63.9%

poor standard of living decrease economic growth

Figure 4.2.15 Lack of infrastructure contributes

Table 4.2.16 Economic growth is an increase in the production of goods and services in
an economy

Frequency Percent Valid Percent Cumulative Percent

Accept 32 88.9 88.9 88.9
Reject 4 11.1 11.1 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.16 illustrated that the most respondents 32 (88.9%) were answered accept
which means Economic growth is an increase in the production of goods and services in an
economy, while other respondents 7 (11.1%) chosen reject which means there is no increase
in the production of goods and services in an economy. Therefore, this result indicates that
the majority of the respondents were answered accept.

44
 percent

Reject
11.1%

Accept
88..9%

0 10 20 30 40 50 60 70 80 90 100

Percent Series1

Figure 4.2.16 Economic growth is an increase in the production of goods and services in
an economy

Table 4.2.17 Economic growth improves the quality of our

Cumulative
Frequency Percent Valid Percent Percent
standard of living 23 63.9 63.9 63.9
health care 7 19.4 19.4 83.3
education 6 16.7 16.7 100.0
Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.2.12 indicates that the respondents 23 (63.9%) were chosen standard of
living when it comes Economic growth improves the quality of our, while 7 (19.4%) health

45
care, also 23 (63.9%) education selected Economic performance. so that this result indicates
that the majority of the respondents were selected Economic performance

percent
70
63.9%
60

50

40

30
19.4%
20 16.7%

10

0
standard of living health care education

Figure 4.2.17 Economic growth improves the quality of our

Table 4.2.18 Economic Growth can be measured through an increase

Cumulative
Frequency Percent Valid Percent Percent
In the GDP 9 25.0 25.0 25.0
per capita income 12 33.3 33.3 58.3

Above all 15 41.7 41.7 100.0

Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.18 indicates that the respondents 9 (25.0%) considered

Economic Growth can be measured through an increase in the GDP, while other 12

46
 (33.3%) respondents think that considered Economic Growth can be measured per
capita income, also the respondents 15 (41.7%) were chosen above all. Therefore,
this result indicates that the majority of the respondents considered Economic
Growth can be measured GDP and per capita income

percent

Above all
41.7%

per capita income

33.3%

In the GDP
25%

0 5 10 15 20 25 30 35 40 45

Figure 4.2.18 Economic Growth can be measured through an increase

Table 4.2.19 Does Economic growth is the best indicator of prosperity

Cumulative
Frequency Percent Valid Percent Percent
Yes 28 77.8 77.8 77.8
No 8 22.2 22.2 100.0
Total 36 100.0 100.0
Source: Primary Data, 2021

Table 4.2.19 shows that the respondents 28 (77.8%) answered yes, that means
Economic growth is the best indicator of prosperity, while 8 (22.2%) other respondents
chosen no. therefore this result indicates that the majority of the respondents answered yes.

47
 Chart Title

13.9

86.1

Accept Reject
Figure 4.2.19 Economic Growth can be measured through an increase

Table 4.2.20 Economic growth creates more profit for businesses

Cumulative
Frequency Percent Valid Percent Percent
Accept 31 86.1 86.1 86.1

Reject 5 13.9 13.9 100.0

Total 36 100.0 100.0

Source: Primary Data, 2021

Table 4.2.20: revealed that the respondents 31 (86.1%) were answered

accept, which means that Economic growth creates more profit for businesses, while

48
 another 5 (13.9%) respondents chosen reject. therefore, this result indicates that the
majority of the respondents were answered accept.

percent

Reject
13.9%

Accept
86.1%

0 10 20 30 40 50 60 70 80 90 100
Percent Series1

Figure 4.2.20 Economic growth creates more profit for businesses

Table 4.3 Descriptive statistics

Mean St. Deviation

Rural areas with a good road infrastructure will 1.1944 .40139
experience growth of agricultural productivity

Transport infrastructure is widely thought to 2.0278 .84468

promote growth
Roads infrastructure is a long-term investment 1.1389 .35074
which may take several years to be completed and
is regarded as a multi-year’s project

49
Roads development makes crucial contribution to 1.4722 .81015
economic growth and fighting against

Does Road development has also been uneven 1.1389 .35074

between rural and urban areas and to increase
economic growth

Energy is commonly defined as a lifeblood of the 1.0833 .28031

global economy (the Oxygen of the Economy

Which relationship between for lagged values of 1.1944 .40139

crude oil, electricity consumption and real GDP

policy contribute to growth by ensuring that the 1.7778 .68080

resulting energy mix is delivered Energy

the expansion of Renewable Energy Sources is a 1.1389 .35074

viable solution to tackle energy security and
climate change

does stable energy sector is one of the most 1.1111 .31873

essential requirements for successful economic
growth

Does Ports facilitate socio-economic infrastructure 1.2222 .42164

and generate external economies that are often not
visible to the general public.

Quality of port has a positive effect 2.4444 .80868

50
Corporatization of port authorities is a critical 1.2778 .45426
reform step for improving port Governance and
efficiency

does The existence of seaports contributes to the 1.0556 .23231

economic growth
Lack of infrastructure contributes 1.3611 .48714

Economic growth is an increase in the production of 1.1111 .31873

goods and services in an economy

Economic growth improves the quality of our 1.5278 .77408

Economic Growth can be measured through an 2.1667 .81064

increase
Does Economic growth is the best indicator of 1.2222 .42164
prosperity
Economic growth creates more profit for businesses 1.1389 .35074

Total Average Mean

0.49
1.39
table 4.3 According to the table 4.3 indicated that the level infrastructure development (IV)
on economic growth (DV) in Somalia is generally very poor because Somalia has suffered
enormous instability and civil war in the last three decades, which have impacted the
population as well as the economy of the country. The total average mean of 1.39 in
descriptive analyzing. Therefore, in this result illustrated that there is an unhealthy
relationship between infrastructure development on economic growth in Mogadishu.

Table 4.4 Mean range value =(x-y/y)

No Mean Range Interpretation

51
 1 1 up to 1.8 Very poor

2 1.9 up to 2.6 Poor

3 2.7 up to 3.4 good

4 3.5 up to 4.2 Very good

5 4.3 up to 5 Excellence

Table 4.5 Correlations

Infrastructure Infrastructure
development development
Infrastructure development Pearson Correlation 1 .981**

Sig. (2-tailed) <.001

N 36 36
Economic growth Pearson Correlation .981** 1

Sig. (2-tailed) <.001

N 36 36
**. Correlation is significant at the 0.01 level (2-tailed).

According to the table 4.4 showed correlations between Infrastructure development and
economic growth in Mogadishu Somalia. The result was analyzed by using Pearson product
momentum correlation. Based on the above table, the result obtained indicated that there is a
strong positive relationship among variables. Which was revealed by R-value of (r=0.981) and p-
value of (p<0.001). which means null hypothesis rejected because p-value is less than the
significance

Table 4.6 Correlations Between

52
 Road’s Energy Port’s Economic
Statements development infrastructure development growth
roads Pearson 1 .934** .928** .977**
development Correlation
Sig. (2-tailed) <.001 <.001 <.001
N 36 36 36 36
energy Pearson .934** 1 .826** .920**
infrastructure Correlation
Sig. (2-tailed) <.001 <.001 <.001
N 36 36 36 36
ports Pearson .928** .826** 1 .941**
development Correlation
Sig. (2-tailed) <.001 <.001 <.001
N 36 36 36 36
economic Pearson .977** .920** .941** 1
growth Correlation
Sig. (2-tailed) <.001 <.001 <.001
N 36 36 36 36
**. Correlation is significant at the 0.01 level (2-tailed).

According to the table 4.5 shows that there is strong positive relationship between
roads development and economic growth in Somalia which was indicated by R-
value of (r=0.977) and p-value of (p=0.001), the same way there is a strong positive
relationship among energy infrastructure and economic growth in Somalia which
was described by R-value of (r=0.920) and p-value of (p=0.001), on the other hand
ports development has a weak relationship on economic growth which was
delineated by R-value of (r=0.941) and p-value of (p=0.001). This result shows that
the overall relationship between Infrastructure development and economic growth in
Somalia is high.

53
 CHAPTER FIVE

FINDINGS, CONCLUSION AND RECOMMENDATIONS

54
5.0 Introduction
This chapter presented the findings, conclusion and recommendations of the
study. The first section presents findings of the research project, the second section
presents the conclusions of the research, and the third section suggests
recommendations.

5.1 Summary of findings

In this part of the study discusses the impact of infrastructure development on economic
growth in Mogadishu. There have been many theoretical and empirical studies on the
relationship between infrastructure development and economic growth. The first objective of
the study was to investigate relationship between roads development and economic growth in
Mogadishu-Somalia. Most of the respondents accepted that enhancing roads development
reduces transportation cost and contributes to economic growth and fights against poverty.
The second objective of the research was to address the role of energy infrastructure
on economic growth. The results found that spending on energy infrastructure and a stable
energy sector is one of the most essential requirements for successful economic growth.
The third objective of the study was to the impact of ports development on
economic growth in Mogadishu- Somalia. The results found shows that ports investment
influences economic growth. And the study revealed that there is a significant and positive
relationship between port development and economic growth. An increase spending on ports
development leads to a positive of economic growth.
The study was used cross sectional strategy because it was based on
variables measured with numbers and analysis with statistical procedures and it‘s
useful for resource and time available to researcher. A cross-sectional study (also
known as a cross-sectional analysis, transverse study, prevalence study) is a type of
observational study that analyzes data from a population, or a representative subset,
at a specific point in time—that is, cross-sectional data. (jod, 2005).

This study was used accessible population and I selected two different companies
located in Mogadishu. The total population of these institutions is 191 but the sample size of
this study was 36 population and data were collected through questionnaires filled by the

55
respondents of the two companies. Then the result was analyzed with SPSS (Statistical
Packages for Social Sciences version 20). I selected those companies because they have
related information and experience and they also understand if there are problems in the
improvement of infrastructure and their effect on economic growth

The present research analyzed the impact of infrastructure development on economic

growth in Mogadishu using the findings derived from stated objectives. The total average
mean of 1.39 in descriptive analyzing indicated that the level impact of infrastructure
development (IV) on economic growth (DV) in Somalia is generally very poor because
Somalia has suffered enormous instability and civil war in the last three decades, which have
impacted the population as well as the economy of the country.

5.2 Conclusion
The economic growth is the common goal of all nations. Everybody lives with more
comfortable, better standard of living than ever before and holding a better welfare
because of the surge in their economic growth. Government in each country aims to
reduce the poverty and increase the level on national income. Therefore, to achieve
the main target of economic growth, governments may implement various kinds of
policies such as encourage gross domestic saving, stimulating investment and
production in their countries. Investment contributes to growth in aggregate wealth.
But the investment cannot increase without increasing in the amount of saving.
Thus, savings perform a major role in providing the national capacity for investment
and production, which will affect the potential of economic growth.
In the empirical evidence, the research analyzed the impact of infrastructure
development on economic growth in Mogadishu Somalia. According to the findings
derived from the stated objectives shows correlation between infrastructure
development and economic growth based on the result of the table 4.5. The data used
Pearson product momentum correlation and the result obtained revealed that there is
strong positive relationship among variables and economic growth, which was
indicated by R-value of (r=0.981) and p-value of (p<0.001) as shown in table 4.5.

56
 Therefore, the study reveals that the overall relationship between infrastructure
development and economic growth in Mogadishu Somalia is very high.

This it can be concluded that infrastructure development plays a major role

in the economy. It was therefore, recommended the Government should give a
special importance to the formulation of specific policies in order to improve
infrastructure in the country.

5.3 Recommendations
After data are collected, discussed and concluded the researcher of this study
recommends to the government, policy makers and other stockholders in Mogadishu
Somalia the following suggestions in order to develop the economy of the country.

 Infrastructure investment alone does not have a significant influence on economic

growth. The institutional environment is a very important complement, allowing
infrastructure investments to be translated into economic growth.
 In the area of transportation, more roads should be constructed and the existing one
adequately maintained particularly the ones already taken over by gully erosion as it
will lead to the reduction of production of firms as well as the in ability of the firms to
evacuate consumables both final and intermediate from rural to urban centers.
The government must pay special attention to the formulation of specific policies in order to
attract foreign direct investments in the country which would also enhance Infrastructure and
promote economic growth as well

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58
 APP ENDIX A

QUESTIONAIRE

Dear respondent, I am kindly request to fill this questionnaire which is aimed at

collecting data on the investigation the impact of infrastructure development on economic
growth in Mogadishu, this research is being undertaken as partial fulfillment of a bachelor
degree in Economics (BC). You have been selected randomly to participate in this study. The
information received will be treated with strict confidentiality and shall not be used for any
other purpose except for this study. Your responses are highly appreciated

59
DEMOGRAPHC PROFILE

 Gender:

a) female b) male

 Age(yrs):

a) 20-30 b) 25-35 c) 36-45 d) Above 45

 Education level of the respondent:

a) secondary b) diploma c) bachelor

d) master

 Marital Status

A) Single B) married C) divorce

 Years of Experience

A) Less than 1-year B) 1 -2 years

C) 3 - 5 years D) Above 5years

SETION A: ROADS DEVELOPMENT

1. Rural areas with a good road infrastructure will experience growth of agricultural
productivity
a) higher rates productivity b) lower rates productivity

60
 1. Transport infrastructure is widely thought to promote growth

a) Economic b) Business c) Industries

2. Roads infrastructure is a long-term investment which may take several years to be

completed and is regarded as a multi-year’s project

a) Accept b) Reject

4.Roads development makes crucial contribution to economic growth and fighting against

a) Absolute poverty b) Rural Poverty c) Urban Poverty

5. Does Road development has also been uneven between rural and urban areas and to
increase economic growth
a) Yes b) No

SECTION B: ENERGY INFRASTRUCTURE

1. Energy is commonly defined as a lifeblood of the global economy (the Oxygen of the
Economy).

a) Accept b) Reject

2. Which relationship between for lagged values of crude oil, electricity consumption and
real GDP
a) Positive relationship b) Negative relationship

3. policy contribute to growth by ensuring that the resulting energy mix is delivered
Energy
a) Efficiently b) least cost b) sustainably and
securely.

61
 4. the expansion of Renewable Energy Sources is a viable solution to tackle energy
security and climate change,
a) Accept b) Reject
5. does stable energy sector is one of the most essential requirements for successful
economic growth.
b) Yes b) No

SECTION C: PORTS DEVELOPMENT

1. Does Ports facilitate socio-economic infrastructure and generate external economies

that are often not visible to the general public.
a) Yes b) No
2. Quality of port has a positive effect
a) Economic growth b) Economic stability c) Economic performance

3. Corporatization of port authorities is a critical reform step for improving port

Governance and efficiency.
a) Accept c) Reject

4. does The existence of seaports contributes to the economic growth.

a) Yes b) No

5. Lack of infrastructure contributes

a) poor standard of living b) decrease economic growth

SETION D: ECONOMIC GROWTH

1. Economic growth is an increase in the production of goods and services in an economy.

a) Accept b) Reject

2. Economic growth improves the quality of our

62
a) standard of living b) health care c) education

3. Economic Growth can be measured through an increase

a) In the GDP b) per capita income c) Above all

4. Does Economic growth is the best indicator of prosperity

a) Yes b) No

5. Economic growth creates more profit for businesses.

a) Accept b) Reject

63